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1 – 10 of 24Robert Mwanyepedza and Syden Mishi
The study aims to estimate the short- and long-run effects of monetary policy on residential property prices in South Africa. Over the past decades, there has been a monetary…
Abstract
Purpose
The study aims to estimate the short- and long-run effects of monetary policy on residential property prices in South Africa. Over the past decades, there has been a monetary policy shift, from targeting money supply and exchange rate to inflation. The shifts have affected residential property market dynamics.
Design/methodology/approach
The Johansen cointegration approach was used to estimate the effects of changes in monetary policy proxies on residential property prices using quarterly data from 1980 to 2022.
Findings
Mortgage finance and economic growth have a significant positive long-run effect on residential property prices. The consumer price index, the inflation targeting framework, interest rates and exchange rates have a significant negative long-run effect on residential property prices. The Granger causality test has depicted that exchange rate significantly influences residential property prices in the short run, and interest rates, inflation targeting framework, gross domestic product, money supply consumer price index and exchange rate can quickly return to equilibrium when they are in disequilibrium.
Originality/value
There are limited arguments whether the inflation targeting monetary policy framework in South Africa has prevented residential property market boom and bust scenarios. The study has found that the implementation of inflation targeting framework has successfully reduced booms in residential property prices in South Africa.
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Luccas Assis Attílio, Joao Ricardo Faria and Mauricio Prado
The authors investigate the impact of the US stock market on the economies of the BRICS and major industrialized economies (G7).
Abstract
Purpose
The authors investigate the impact of the US stock market on the economies of the BRICS and major industrialized economies (G7).
Design/methodology/approach
The authors construct the world economy and the vulnerability between economies using three economic integration variables: bilateral trade, bilateral direct investment and bilateral equity positions. Global vector autoregressive (GVAR) empirical studies usually adopt trade integration to estimate models. The authors complement these studies by using bilateral financial flows.
Findings
The authors summarize the results in four points: (1) financial integration variables increase the effect of the US stock market on the BRICS and G7, (2) the US shock produces similar responses in these groups regarding industrial production, stock markets and confidence but different responses regarding domestic currencies: in the BRICS, the authors detect appreciation of the currencies, while in the G7, the authors find depreciation, (3) G7 stock markets and policy rates are more sensitive to the US shock than the BRICS and (4) the estimates point out to heterogeneities such as the importance of industrial production to the transmission shock in Japan and China, the exchange rate to India, Japan and the UK, the interest rates to the Eurozone and the UK and confidence to Brazil, South Africa and Canada.
Research limitations/implications
The results reinforce the importance of taking into account different levels of economic development.
Originality/value
The authors construct the world economy and the vulnerability between economies using three economic integration variables: bilateral trade, bilateral direct investment and bilateral equity positions. GVAR empirical studies usually adopt trade integration to estimate models. The authors complement these studies by using bilateral financial flows.
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Faris Alshubiri, Samia Fekir and Billal Chikhi
The present study aimed to examine the effect of received remittance inflows on the price level ratio of the purchasing power parity conversion factor to the market exchange rate…
Abstract
Purpose
The present study aimed to examine the effect of received remittance inflows on the price level ratio of the purchasing power parity conversion factor to the market exchange rate in 36 developed and developing countries from 2004 to 2020.
Design/methodology/approach
The panel data conducted a comparative analysis and used panel least squares, regression with Driscoll-Kraay standard errors of fixed effect, random effect, feasible generalised least squares and maximum likelihood robust least squares to overcome the heterogeneity issue. Furthermore, the two-step difference generalised method of moments to overcome the endogeneity issue. Diagnostic tests were used to increase robustness.
Findings
In the studied countries, there was a statistically significant negative relationship between received remittance inflows and the price-level ratio of the purchasing power parity conversion factor to the market exchange rate. This relationship explains why remittance flows depreciate the real exchange rate. The study’s results also indicated that attracting investments can improve the quality of institutions despite high tax rates, leading to low tax revenue.
Originality/value
The current study findings enrich the understanding of policies of how governments should minimise tariff rates on capital imports and introduce export-oriented incentive programmes. The study also revealed that Dutch disease can occur due to differences in the demand structure and manufacturing development policy.
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Ayman Ismail, Seham Ghalwash, Maria Ballesteros-Sola and Ahmed Dahawy
After completion of the case study, the students will be able to analyze the FinTech industry in emerging markets, distinguish the growth strategies for startups in the…
Abstract
Learning outcomes
After completion of the case study, the students will be able to analyze the FinTech industry in emerging markets, distinguish the growth strategies for startups in the hyper-growth phase, using the Ansoff matrix, evaluate and select geographical markets for expansion (foreign country selection) and understand the liability of foreignness concept.
Case overview/synopsis
In 2015, Islam Shawky, Alain Al-Hajj and Mostafa Menessy founded Paymob in Egypt, a FinTech start-up providing technological and financial solutions to consumers and merchants in the country. The company had grown into one of Egypt’s most prominent digital payment providers by deploying infrastructure and technologies that empower the underserved with access to financial services. In 2021, Paymob had gained a lot of support from venture capital investors that ended with closing the largest in Egypt Series A fund of $18.5m led by Dubai-based venture capital firm Global Ventures. Although Paymob had already reached great success in Egypt, the founders’ vision was to become the regional leader of digital payments, focusing on small and medium-sized enterprises. So, they are considering regional markets similar to Egypt’s, such as the Kingdom of Saudi Arabia, a call with a lot of structure but a lot of competition, and Pakistan, a market with much less competition but relatively unstructured. The founders found themselves in early 2022 deciding between these two markets in preparation for the next round of Series B $50m funding.
Complexity academic level
This case study can be useful for courses in executive education.
Supplementary materials
Teaching notes are available for educators only.
Subject code
CSS 3: Entrepreneurship.
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This study quantitatively examines the relationship between economic fluctuations and government budget size in the context of China’s fiscal decentralization, drawing inspiration…
Abstract
Purpose
This study quantitatively examines the relationship between economic fluctuations and government budget size in the context of China’s fiscal decentralization, drawing inspiration from theoretical predictions of the Keynesian view and empirical studies on other economies.
Design/methodology/approach
The panel comprises 31 provinces or equivalents in mainland China, spanning from 1994 to 2019. Diverse estimation strategies including two-way fixed effect regression, the generalized method of moments (GMM) and threshold regressions are, utilized.
Findings
The results suggest that under the “tax-assignment system”, neither the central government’s fiscal transfers nor the provincial budgetary revenues or expenditures help reduce economic volatility. Surprisingly, some regression outcomes suggest that government size measures destabilize business cycles.
Originality/value
While the study does not provide supportive evidence for the stabilizing effect of public budgets in Chinese provinces, it promotes a rethinking of the government’s intricate role in macroeconomic stabilization in the context of China’s fiscal decentralization.
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High home ownership has economic benefits but is correlated with high prices. Allied with reduced mortgage availability and higher borrowing costs, this is now exerting a…
Details
DOI: 10.1108/OXAN-DB289689
ISSN: 2633-304X
Keywords
Geographic
Topical
This study aims to investigate the dynamics between exogenous shocks, financial stress and economic performance in the USA from January 1995 to August 2023.
Abstract
Purpose
This study aims to investigate the dynamics between exogenous shocks, financial stress and economic performance in the USA from January 1995 to August 2023.
Design/methodology/approach
Granger-causality tests and impulse response analyses are used to examine causal relationships and dynamic responses among crude oil prices, real M2 money supply, financial stress and key economic indicators.
Findings
This study reveals a significant correlation between elevated financial stress and reduced real output, along with disruptions in the labor market, potentially leading to economic recessionary trends. Failure to address these challenges could perpetuate labor market difficulties, weaken capital accumulation within the loanable funds market and ultimately hinder long-term economic growth prospects in the USA.
Practical implications
This study offers insights for policymakers to mitigate financial stress. Recommendations include enhancing financial surveillance, strengthening regulatory frameworks, promoting economic diversification and implementing countercyclical policies to stabilize the economy and support labor markets. In addition, proactive monitoring of financial stress indicators can serve as early warning signals, aiding in timely interventions and effective risk management strategies.
Originality/value
This research provides a comprehensive analysis of how the financial stress index (FSI) mediates the effects of external shocks on the US economy, addressing a gap in existing literature. The integration of the FSI into the analysis enhances the understanding of the transmission channels through which external shocks influence the economy.
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Mariam Aljassmi, Awadh Ahmed Mohammed Gamal, Norasibah Abdul Jalil and K. Kuperan Viswanathan
It is widely argued that money laundering (ML) is not a new phenomenon and the pervasiveness of ML is associated with some severe economic, social and political costs. Due to the…
Abstract
Purpose
It is widely argued that money laundering (ML) is not a new phenomenon and the pervasiveness of ML is associated with some severe economic, social and political costs. Due to the lack of studies on the ML’s issue in the UAE, this study aims to examine the determinants of ML in the country between 1975 and 2020.
Design/methodology/approach
The autoregressive distributed lag bounds testing results demonstrate the presence of long-run relationship between ML and the selected macroeconomics variables. The analysis is validated by the dynamic ordinary least squares, the fully modified ordinary least squares and the canonical co-integration regression estimators.
Findings
The estimation result reveals that while the real estate market, outflow of money, arms procurement and size of the underground economy influences the size of ML positively, gold trade, the level of financial development and the size of economic activities are negatively associated with ML, both in the short- and long-run.
Originality/value
Up to date from a country-level analysis, no study has been devoted to the ML in UAE, except for Aljassmi et al. (2023). To the best of the authors’ knowledge, this study is the first to investigate the determinants of laundered money in the UAE economy. Based on these outcomes, strategies and measures which will deter the laundering of illicit funds through the real estate and gold market, remittance system, financial system and arms procurement contracts in the UAE are recommended.
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Cristina Gianfelici, Ann Martin-Sardesai and James Guthrie
This research explores how contextual elements and significant events influence the changing storylines within a company's directors' reports spanning a period of six decades…
Abstract
Purpose
This research explores how contextual elements and significant events influence the changing storylines within a company's directors' reports spanning a period of six decades. These elements and events encompass the internal dynamics of the family that owns the company, industry-specific advancements, political and socioeconomic climates, and explicit guidelines related to corporate reporting.
Design/methodology/approach
This research employs a case study methodology to analyse the directors' reports of Barilla, a prominent Italian food manufacturer, within the theoretical framework of historical institutionalism. A systematic content analysis is conducted on sixty directors' reports published between 1961 and 2021. The study also identifies and examines significant contextual events within this six-decade period, which are linked to four key institutional factors.
Findings
Based on the research findings, the directors' reports exhibited notable fluctuations throughout the studied timeframe in reaction to shifts in the institutional setting. Our investigation highlights that each institutional element experienced crucial pivotal moments, and given their interconnected nature, modifications in one factor impacted the others. It was noted that these pivotal moments resulted in alterations in the directors' reports' content across various thematic areas. Additionally, despite Barilla being a multinational company, it was found that national events within Italy had a more pronounced influence on the evolving narratives than global events.
Originality/value
Previous research on directors' reports or chairman's statements has primarily focused on the influence of macro-level institutional factors on the narratives. In contrast, our study considers both macro-level and micro-level institutions, specifically examining the internal events within a family business and how they shape the content of directors' reports. Our study is also distinctive in its analysis of specific critical junctures and their interactions with the investigated institutional factors. Additionally, to the best of our knowledge, few existing studies span a timeframe of sixty years, particularly concerning an Italian company.
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Rubee Singh, Akash Gupta, Arushi Bajpai and Vinay Kandpal
This chapter critically discusses the literature on the subject of circular economy. It defines the circular economy at the outset and advocates its adoption in smart cities. It…
Abstract
This chapter critically discusses the literature on the subject of circular economy. It defines the circular economy at the outset and advocates its adoption in smart cities. It briefly explains the multiple phases of industrial revolution and the slow and gradual shift from a linear economy which is based on make-use-dispose model to a circular economy which relies on reusing and recycling the products produced in the production cycle. It then critically examines the legal challenges that can be associated with such a system. It draws on the lessons learnt from cities such as Amsterdam which has successfully implemented the system of circular economy. This chapter also delves into the Columbian waste management system to understand the market functioning in the waste management sector which is handled by private enterprises in the country. Moreover, the public–private partnership model in the Chinese city Suzhou is explored, and exciting methods of using this model were found.
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