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21 – 30 of 760Hongjun Zeng and Abdullahi D. Ahmed
This paper aims to provide new perspectives on the integration of East Asian stock markets and the dynamic volatility transmission to the Bitcoin market utilising daily data from…
Abstract
Purpose
This paper aims to provide new perspectives on the integration of East Asian stock markets and the dynamic volatility transmission to the Bitcoin market utilising daily data from 2014 to 2020.
Design/methodology/approach
The authors undertake comprehensive analyses of the dependency dynamics, systemic risk and volatility spillover between major East Asian stock and Bitcoin markets. The authors employ a vine-copula-CoVaR framework and a VAR-BEKK-GARCH method with a Wald test.
Findings
(a) With exception of KS11 and N225; HSI and SSE; HSI and KS11, which have moderate dependence, dependencies among other markets are low. In terms of tail risk, the upper tail risk is more significant in capturing strong common variation. (b) Two-way and asymmetric risk spillover effects exist in all markets. The Hong Kong and Japanese stock markets have significant risk spillovers to other markets, and quite notably, the Chinese stock market is the largest recipient of systemic risk. However, the authors observe a more significant risk spillover from the Chinese stock market to the Bitcoin market. (c) The VAR-BEKK-GARCH results confirm that the Korean market is a significant emitter of volatility spillovers. The Bitcoin market does provide diversification benefits. Interestingly, the Chinese stock market has an intriguing relationship with Bitcoin. (d) An increase in spillovers in East Asia boosts spillovers to Bitcoin, but there is no intuitive effect of Bitcoin spillovers on East Asian spillovers.
Originality/value
For the first time, the authors examine the dynamic linkage between Bitcoin and the major East Asian stock markets.
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Partha Gangopadhyay and Manas Chatterji
The most powerful observation of Keynes is the potential role of prisoners' dilemma setting the forces for an over-arming by individual nations since each individual decision is…
Abstract
The most powerful observation of Keynes is the potential role of prisoners' dilemma setting the forces for an over-arming by individual nations since each individual decision is correctly based on individual rationality, which unfortunately brings the collective disaster of an excessively armed world. The over-arming only hurts us by reducing our economic well-being, which clears the way for a violent conflict. How do we get out of this collective mess? Keynes suggested the role of negotiation, arbitration and coalition formation and application of moral ethics and penalty mechanism to break the tyranny of the prisoners' dilemma – a strategic concept unknown to Keynes.
Wai Ching Alice Chu, Man Hin Eve Chan, Jenny Cheung and Hong-Oanh Nguyen
Since its development by Tinbergen (1962), the gravity model of international trade has widely been applied to analyse the effect of various factors on trade relationships between…
Abstract
Since its development by Tinbergen (1962), the gravity model of international trade has widely been applied to analyse the effect of various factors on trade relationships between countries. Past studies on trade gravity vary not only in the mix of model variables but also in how they have come into the analysis. This study reviews existing literature on bilateral trade with an aim to identify influential predictors such as changes of trade policy and national development strategy and highlight important yet understudied factors such as transport and logistics infrastructure, and sustainable development. To demonstrate the needs to examine these critical factors across industry sectors, the study presents the case of textiles and clothing (T&C) production and trade between China and its trading partners as an illustration. Through the literature review, it shows how the gravity model can be applied to address current issues in international trade arena such as the potential trade war between the US and China, China’s Belt and Road Initiative (BRI), and other important factors shaping global T&C trade. This study offers future research directions for analysis of global trade in the T&C industry and contributes to the wider literature of international business and trade.
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Taiwan growth prospects.
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DOI: 10.1108/OXAN-DB250466
ISSN: 2633-304X
Keywords
Geographic
Topical
Joachim Wolf, Till Dunemann and William G. Egelhoff
The current paper seeks to analyze to what degree theories from different fields of social science are able to explain the home‐region orientation of MNCs. This is necessary since…
Abstract
Purpose
The current paper seeks to analyze to what degree theories from different fields of social science are able to explain the home‐region orientation of MNCs. This is necessary since there has been only a relatively narrow, economics‐oriented explanation for such an orientation.
Design/methodology/approach
The analysis is based on a thorough review of the literature that refers to a MNC's home‐region orientation and on different theories from the social sciences.
Findings
The paper shows that several theories from economics, psychology, and sociology are able to explain an MNC's home‐region orientation.
Research limitations/implications
The paper contributes to the development of a more multi‐faceted explanation of why MNCs generally prefer a home‐region orientation. The paper derives propositions that are consistent with each theory. These propositions can be tested empirically in subsequent research studies.
Originality/value
The paper discusses a number of different theories and streams of research that can be used to conceptually explain and gain insight into the phenomenon of a home‐region orientation for MNCs
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Keywords
However, coordination and implementation challenges still weigh on its prospects.
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DOI: 10.1108/OXAN-DB243979
ISSN: 2633-304X
Keywords
Geographic
Topical
CHINA: Exports will continue to fall in early 2023
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DOI: 10.1108/OXAN-ES275288
ISSN: 2633-304X
Keywords
Geographic
Topical
Jacob W. Musila and Simon P. Sigué
The growing investment gap and the declining foreign aid in recent years have compelled many African countries to turn to foreign direct investment (FDI) as a means to avoid…
Abstract
Purpose
The growing investment gap and the declining foreign aid in recent years have compelled many African countries to turn to foreign direct investment (FDI) as a means to avoid development financing constraints. This article seeks to examine the performance of FDI flow to various regions and countries in Africa and the implication(s) on FDI of the recently launched new partnership for Africa's Development (NEPAD) programs.
Design/methodology/approach
Explores strategies for accelerating the flow of FDI to Africa, especially the implications of NEPAD programs.
Findings
Africa's FDI inflows are highly uneven both between regions and between countries depending on economic and political environment. In addition, if implemented successfully, NEPAD programs would help spur the flow of FDI to Africa.
Originality/value
Besides the socio‐economic policy recommendations, suggests marketing strategies to help increase the flow of FDI to Africa.
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The Greater Mekong Sub-region (GMS) is noted as an investment destination recently. However, there are few surveys about this region. In particular, direction of the regional…
Abstract
Purpose
The Greater Mekong Sub-region (GMS) is noted as an investment destination recently. However, there are few surveys about this region. In particular, direction of the regional disparity and economic linkage cannot be found, although it is inevitable to formulate economic or business policies. The paper aims to discuss these issues.
Design/methodology/approach
First, the author calculated the regional GINI coefficient of the GMS, converting the per capita GDP using the purchasing power parity. Then, the trend of intra-regional trade was calculated by using the data of Direction of Trade Statistics of IMF. In addition to that, to consider the trade structures, bilateral trades of Thailand with Vietnam, Laos and Myanmar were analyzed.
Findings
This paper made clear that the regional disparity of the GMS has been gradually shrinking from serious level to moderate in recent years, although it is still larger than the disparity of ASEAN original members. Two Chinese districts and Vietnam played an important role to improve the disparity. As for the intra-regional trade, it used to be very poor in the early 1990s, but is increasing in these years. There may be some signs of starting of the intra-industrial trade between Thailand and Vietnam, although trades with lower developed countries such as Laos and Myanmar are led by natural resources-related products.
Originality/value
This paper is the first survey to calculate the regional disparity of the GMS with time series data. The analysis of the intra-trade among the GMS members expresses the current situation of the economic linkage of this area.
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Anokye M. Adam and Imran Sharif Chaudhry
The purpose of this paper is to investigate the currency union (CU) effect on aggregate intra-trade in the Economic Community of West African States (ECOWAS) and on bilateral trade…
Abstract
Purpose
The purpose of this paper is to investigate the currency union (CU) effect on aggregate intra-trade in the Economic Community of West African States (ECOWAS) and on bilateral trade among individual countries using the gravity model.
Design/methodology/approach
Using panel dynamic ordinary least square, we examined the short- and long-run CU effect on aggregate intra-ECOWAS trade and bilateral trade among ECOWAS countries from 1995 to 2010. Chow poolability test was conducted for the appropriateness of pooling the cross-section parameters as against individual model. The augmented Dickey–Fuller (ADF) test; the Phillips–Perron (PP) test; and the Kwiatkowski, Phillips, Schmidt and Shin (KPSS) test were conducted on the individual data series, and the Levin, Lin and Chu test; the Im, Pesaran and Shin test; the Breitung test; and the Hadri test were used for testing cross-sectional independent panel unit root tests. Kao panel cointegration test was conducted to identify long-run relationships.
Findings
We found evidence of significant positive CU effect on aggregate intra-ECOWAS trade. The estimates also show that Benin, Burkina Faso, Niger, Senegal and Togo trade more with countries they share common currency with than what they would have been in both short and long run. We again observed that CU is insignificant in explaining Cote d’Ivoire, Mali and Senegal intra-trade with ECOWAS countries, though their observed intra-trade with ECOWAS is relatively high which is found to be explained by export diversification.
Practical implications
The findings reveal that CU is good for aggregate intra-regional trade though some individual members respond negative to CU. The finding of diversification as a necessary tool to increase intra-regional trade imply that as effort of introducing single currency is being pursued rigorously, effort to diversify export or trade complement should not be overlooked.
Originality/value
There exist panel studies on CU on aggregate intra-regional trade in ECOWAS. However, there is a need to have country level study to identify CU effect on each country, as it is sensitive to country-specific factors which are unobservable in time series analysis of group of countries. Also, our group estimate differs in methodology in the sense that the dynamic generalised least takes care of endogeneity in trade gravity literature.
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