Search results
21 – 30 of over 4000
China's exchange rate policy.
Details
DOI: 10.1108/OXAN-DB208257
ISSN: 2633-304X
Keywords
Geographic
Topical
Guilherme Magacho, Rafael Ribeiro and Igor Rocha
As economies with high economic complexity and productive capabilities may easily adapt their productive structure due to product differentiation and innovation, the central…
Abstract
Purpose
As economies with high economic complexity and productive capabilities may easily adapt their productive structure due to product differentiation and innovation, the central variable of competitiveness for these countries is the product quality, not price. On the other hand, the price can be an important determinant of less complex countries, and hence, real exchange rate (RER) misalignments may have long-term impacts. This paper aims to empirically assess variations in the magnitude of the impact in RER misalignments on output growth subject to countries’ economic complexity.
Design/methodology/approach
The estimation technique used is the generalized method of moments-System estimator as this method is robust to reverse causality. Heterogeneous regressions using interaction models are undertaken to analyze to what extend promoting economic complexity can reduce price competitiveness dependence and allow countries to grow faster without relying on cost competitiveness.
Findings
Estimates show that economic complexity (which measures technological and productive capabilities) determines cross-country differences regarding the effects of RER misalignments on countries’ long-term growth rates. The results suggest that exchange rate devaluations may not be effective for countries at the top end of the technological ladder while an overvalued RER may damage the long-term growth rate of countries with low levels of economic complexity.
Originality/value
This paper contributes to the literature by empirically investigating the impact of RER misalignments in countries with distinct technological and productive capabilities based on the recent developments of countries’ economic complexity analysis. It investigates whether more diversified and complex economies are less sensitive to RER misalignments as they can adapt their production, undertake other tasks, create new products and increase the quality of products they produce. Less complex economies, on the other hand, are less capable of innovating because it demands productive capabilities they do not have, and hence, they are more dependent on their current export basket.
Details
Keywords
The purpose of this paper is to propose predictive models of speculative revaluation attacks, which would facilitate currency risk hedging in emerging and developed countries.
Abstract
Purpose
The purpose of this paper is to propose predictive models of speculative revaluation attacks, which would facilitate currency risk hedging in emerging and developed countries.
Design/methodology/approach
The purpose of this paper is achieved using the methodology of multiple triangulation. Paper combines different theoretical perspectives (three generations of speculative attack models), two sources of data (emerging countries and developed countries) and three methods (logit regression, probit regression and artificial neural networks, ANN) for identification of leading indicators and forecasting of speculative attacks. Combination of multiple observations (data), underlying theories and methods allowed achieving least biased results.
Findings
A list of leading indicators of speculative revaluation attacks was generated based on previous researches and three generations of speculative attacks' models. Qualitative and quantitative differences of speculative revaluation attacks in emerging and developed countries were identified. The decision matrix of currency risk hedging in the context of speculative devaluation and revaluation attacks was proposed.
Research limitations/implications
Although the sample of this researcher includes a wide range of countries (65 in total), their separation into developed and emerging countries is arbitrary (in the course of 35 years some countries have changed the status from emerging towards developed). The initial list of leading indicators is limited, includes mostly economic variables. It could be improved by encompassing political variables, credit ratings, consumer and business confidence indices.
Practical implications
Developed predictive models of speculative revaluation attacks may significantly reduce important element of risk – uncertainty – and, consequently, the cost of financial hedging.
Originality/value
This paper is one of the first public attempts to apply alternative methodology of ANN for forecasting speculative attacks. The results showed that latter method is more accurate than probit and logit regressions. Also, to the author's best knowledge, this is a first public attempt to separately analyse the phenomenon of speculative revaluation attacks.
Details
Keywords
Santiago Roca and Rodrigo Priale
The serious economic difficulties that Peru is confronting, its rapid inflation, the failure of the IMF stabilisation programme, and the recent adoption of a new economic…
Abstract
The serious economic difficulties that Peru is confronting, its rapid inflation, the failure of the IMF stabilisation programme, and the recent adoption of a new economic programme are all topics that are worth analysing.
Austerity in Greece has produced the ostensibly counterproductive effect of throwing the country into a deeper depression and rendering it more difficult to repay its debts. I…
Abstract
Austerity in Greece has produced the ostensibly counterproductive effect of throwing the country into a deeper depression and rendering it more difficult to repay its debts. I address this apparent paradox by examining both the integration of Greece into the European Monetary Union and post-crisis austerity measures with a particular focus on the Greek credit system. I do so by employing a historical materialist framework focusing on Marx’s concept of ‘fictitious capital’, capital not backed by a commodity transaction, but by a claim on future value. I argue that, while the crisis is overdetermined, one hitherto unexplored dimension is the rapid expansion of the Greek credit system in the 1990s and 2000s. More specifically, Greek banks expanded to neighbouring countries, and borrowing by households and firmed spiked dramatically after Greece adopted the Euro, but a number of domestic political-economic factors acted as drags to this process. In this context, I argue that the crisis has served as an opportunity to impose a radically accelerated restructuring of the Greek economy in line with the ideal neoliberal utopia. This can be understood as one of the three responses to a crisis of fictitious capital: internal devaluation, asset devaluation or upward. However, the success of this project is far from guaranteed, so far the austerity project pursued by the troika has failed to replace the old Greek balance of social forces that have dominated the post-junta political economy of Greece.
Details
Keywords
ARGENTINA: Covert devaluation aims for quick IMF deal
Details
DOI: 10.1108/OXAN-ES280734
ISSN: 2633-304X
Keywords
Geographic
Topical
Hongmin Yan, David Solnet and Tyler G. Okimoto
The purpose of this paper is to investigate a special type of unethical behaviors among frontline service employees – unethical pro-organizational behaviors (UPB). Building on…
Abstract
Purpose
The purpose of this paper is to investigate a special type of unethical behaviors among frontline service employees – unethical pro-organizational behaviors (UPB). Building on social identity theory, the paper examines how social identifications with the organization and customers interactively affect employees' engagement in UPB. The paper also explores the underlying psychological mechanisms that explain this effect.
Design/methodology/approach
This study uses a multistage, sequential research design to test the hypothesized model. Studies 1A and 1B use scenario-based experiments with a randomized between-subjects design. Study 2 uses a survey design to replicate and expand the findings from Study 1 by collecting survey data from frontline service employees in various service sectors.
Findings
The results across two studies reveal that high organizational identification will motivate employees to engage in UPB when the opportunity arises, while employees who also identify with customers will more likely abstain from committing UPB. Findings from the survey study also show that this interactive effect on UPB is achieved by devaluing customers as tools or placing fault upon them.
Originality/value
This research provides a deeper exploration of the UPB at the organizational frontline. From a social identity theoretical perspective, this research examines how identification with customers and with the organization jointly shape frontline employees' engagement in UPB. In doing so, this research provides insight into the contextual limitations of existing UPB research while also offering practically relevant implications for managing UPB in frontline service contexts.
Details
Keywords
ARGENTINA: Devaluation appears increasingly inevitable
Details
DOI: 10.1108/OXAN-ES278662
ISSN: 2633-304X
Keywords
Geographic
Topical
LEBANON: Politics could delay currency devaluation
Details
DOI: 10.1108/OXAN-ES273031
ISSN: 2633-304X
Keywords
Geographic
Topical
LEBANON: Devaluation will impact economy marginally