Australian Economic Papers最新文献

Theoretical predictions of the effect of technological change on employment are ambiguous and depend on the extent to which new technology is embodied in new jobs. This paper separates positive and negative shocks and examines the extent to which technological shocks have an asymmetric effect on unemployment in nine European countries by using hidden cointegration analysis within a likelihood-based panel framework. The findings are consistent with the hypothesis that technological changes have had an unequal effect on unemployment because negative and positive shocks have different impacts on unemployment in terms of sign and size. It is interesting to note that women appear to be the group most negatively impacted by technological shocks. The estimates also show that the results are inconsistent because technological advancement has resulted in ‘creative destruction’ in four countries while ‘creative creation’ has occurred in five of them. It is worth mentioning that the methodological framework utilized in this paper can be a useful tool for predicting the behaviour of technological shocks. Policy implications are discussed.

This paper examines the impact of pro-worker interference on wage contracts and innovation incentives in the labour market. Using a general equilibrium model, we find that excessive interference affects contingent wage contracts in innovator start-ups and tech-intensive firms, especially for complex innovation. When worker dismissal is restricted, high wages may not effectively drive innovation. Moreover, without an efficient intellectual property market, excessive labour market interference can lead to innovation stagnation. Our findings highlight the importance of balancing labour market regulations to foster innovation and ensure its continued growth.

This study examines the types of public value that Thai public business schools aim to realise. The study draws on publicly available data relating to the mission statements of these schools and follows a recognised research approach for analysing data from mission statements. It also compared these results to those found in Thai private universities, as well as in Australian universities, where a similar study has recently been undertaken. Our results indicate that there are currently four distinct types of public business schools in Thailand based on their public value propositions: Society-oriented Schools, Graduate-producing Schools, Socially-responsible Leadership Schools, and Internationally-oriented Schools. While the first two concentrate on creating value for Thai society and businesses, the latter two concentrate on more holistic outcomes, have less of a Thailand-centric focus, and are more likely to be members of international accreditation bodies. An analysis of the private schools provided broadly similar outcomes, likely because both public and private universities are subjected to the same political and cultural expectations. In an increasingly competitive business education market, some Thai public business schools may shift from simply supplying graduates to Thai businesses to embracing more globally relevant public value propositions, especially if they wish to pursue international accreditation. A greater emphasis on engagement and working with professional bodies will also likely be essential.

Bank capital requirements aim at reducing the likelihood of banks' failure. However, these policies may generate externalities on the overall economy. By investigating the pathways from capital requirements to housing tenure using structural equation modelling, we show that community banks' capital requirements increase the gap between the regional real estate loans-based and non-real estate loans-based housing purchase rate and act as driving factors of housing market imbalance. The drop in residential real estate loans caused by the increase in capital requirements has two opposite effects: the direct effect motivates residents to rent properties, while the indirect effect motivates residents to purchase them due to the fall in housing prices. When both effects exist in housing purchases with real estate loans, the former effect is more influential than the latter one. Our findings suggest that the impact of capital requirements on housing tenure will depend on residents' reliance on real estate loans. If a housing purchase requires real estate loans, capital requirements will have a negative impact on the housing purchase, and vice versa.

How do price fluctuations in the real estate investment trust (REIT) market relate to price fluctuations in other financial markets, such as the stock and commodity markets? In order to grasper this topic, we examine the transmission of shocks and volatility spillover among the REIT, stock, and oil markets using a trivariate asymmetric GARCH model with BEKK specification. The empirical results indicate that there exists shock transmission from REIT to the oil markets and from the stock market to both the oil and REIT markets. The results also show that the volatility of the REIT market is transmitted to both oil and stock markets. Conditional correlations among the volatility of these markets are dynamic and crisis-sensitive. The correlations are positive between the volatility of stock and both REIT and oil markets. However, equity investors should be more interested in adding REIT assets to equity portfolios than oil futures to minimise risk, without reducing expected returns.

Many nations have taken steps to encourage renewables through environmental policy frameworks; however, they still account for a small portion of global power output. This fact suggests that there are still some gaps between the potential advantages of renewables and their implementation, and these gaps must be investigated. Thus, the present study examines the effect of finance for the expansion of renewable energy technologies (RETs) by empirically assessing the sources of finance in facilitating the expansion of RETs on four renewable energy sectors; hydroelectric, biomass, solar photovoltaic and wind. This study applies a fixed effects estimator with Driscoll–Kraay standard errors on private and public sources of finance (financial market, banking sector and public debt) in selected Asia-Pacific countries between 1998 and 2016. This study has shown that not all sources of finance have the same effect on the clean-energy sector. The financial market plays a critical role in supplying financial capital for risky and uncertain technologies that require a high degree of financing, which could be particularly helpful for technology deployment in high-tech industries. Investigations into the effectiveness of source of finance for RETs also indicate that banks discourage their deployment of RETs in the Asia-Pacific.

Institutions are critical economic pillars that influence not only growth but also the distributional outcomes that affect the speed of poverty reduction. High variability in the extent of policy and trade benefits creates large disparities and makes the role of institutions more pervasive. In this light, this study aims to investigate the impact of governance and trade openness on poverty reduction in BRICS countries from 1991 to 2019. For this purpose, the study uses the dynamic common correlated effect method with a recursive mean adjustment approach to analyse the relationship among the heterogeneous panel variables with cross-sectional dependence. The system generalised method of moments (GMM) instrument variable approach confirms the consistency of the results. Further, the study applies the Dumitrescu–Hurlin causality test to determine the causal relationship between variables. The findings show that trade openness and economic growth effectively reduce poverty in BRICS. Trade benefits the poor by raising their income. However, the negative effects of governance on poverty reduction dilute these benefits through a weakened trickle-down effect. In addition, income inequality creates a negative impact on poverty reduction, which widens the poverty gap in the BRICS countries even further. The consistency of the results is confirmed by the system GMM instrument variable approach. As a result, it is recommended to ensure better regulatory practices that improve the quality of governance and address any structural inequalities directly.

This paper examines the effect of foreign direct investment (FDI) inflows on overall growth, as well as its sector-specific spillovers in the Middle Eastern and North African region during the period from 2000 to 2020. Our major innovation is our ability to disaggregate FDI into primary, secondary and tertiary and examine their individual impact on growth, as well as their sector-specific spillovers by using dynamic panel GMM methodology. We find prima facie evidence that total FDI significantly stimulates growth. However, when we turn to the disaggregated FDI data, primary sector FDI adversely affects the gross domestic product (GDP) growth in the service sector and overall GDP growth. On the other hand, secondary FDI has a ‘double-edged’ effect, benefiting its own sector (the service sector's GDP growth), but not other sectors. In contrast, service sector FDI stimulates GDP growth in mining, manufacturing and service sectors, thereby enhancing overall economic growth. Our findings have important policy implications regarding the incentives provided by governments to encourage FDI, which need to be fine-tuned to attract certain types of FDI (tertiary), with less focus on the primary sector

By using the misfired missile event from Taiwan to mainland China as an exogenous shock, we identify the causal effect of potential military risk on the Chinese A-share market. We find that the misfired missile event indeed causes a significant decline in the stock prices of Taiwan-related A-share firms, especially for firms that have stronger relationship with Taiwan. Further analysis shows that the increased required rate of return due to higher political uncertainty is the main driving force of the stock price decline. Our findings provide strong support for the existence of priced political risk in the stock market.

We construct a core-periphery theoretical model based on the cross-border spillover effects of macroprudential policies, to calculate the financial stability gains from macroprudential policy coordination between the two countries. Numerical simulation results show that the gains from coordination between the core and the periphery are zero when facing reverse monetary policy shocks, when macroprudential policy coordination is not needed; however, in the case of high simultaneous loosening (tightening) of monetary policies in both countries, the macroprudential policy coordination mechanism can reduce the negative externalities of cross-border financial spillovers and increase the total gains from financial stability; the total gains from macroprudential policy coordination increase as the peripheral macroprudential policy operating space decreases, the degree of cross-border financial spillovers increases, and the degree of cross-border spillovers from core monetary policy increases. Therefore, the international coordination of macroprudential policies has certain possibilities and necessities.