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Open Access
Article
Publication date: 29 March 2024

James Caporaso

Trade relations between China and the USA have been marked by conflict, especially since China’s membership in the World Trade Organization (WTO). These conflicts have been…

Abstract

Purpose

Trade relations between China and the USA have been marked by conflict, especially since China’s membership in the World Trade Organization (WTO). These conflicts have been analyzed from a variety of perspectives, including the loss of jobs in the USA due to Chinese imports, competition in high technology sectors and the balance of trade. Conceptual frameworks have employed models of domestic differences as well as models of international power distribution. Among domestic differences examined are the existence of state-owned enterprises in China compared to the domination of the USA economy by private firms, the large role of the Communist Party in China and the influence of labor and environmental and labor groups in the USA. Power distribution theories focus on the systemic effects of the distribution of power on trade openness and on the pattern of intra-bloc versus between-bloc trade. This paper aims to examine the role of macroeconomic policy factors in China and the USA, in particular, the role of national patterns of savings, investment and consumption (both private and government). The paper concludes that insofar as the balance of trade is an important component of the trade conflict, domestic macroeconomic factors continue to be important. The resolution of the conflict will have to take into account the respective macroeconomic policies of China and the USA.

Design/methodology/approach

The design is an analytic case study of US–China trade relations with a particular focus on the balance of trade. The conceptual framework employed involves an analysis of macroeconomic policy categories, especially the overall pattern of savings (household, firm and government), investment and consumption. Process tracing over time since China's membership in the WTO is carried out with an eye toward the relationship between the balance of trade and macroeconomic policy.

Findings

The main findings are that there is a strong relation between the respective macroeconomic policies of the USA and China and their trade relations. The domestic political economy of the USA encourages consumption and a low rate of savings. The opposite is true of China where household income is low by design and national savings are high. China depends on the USA to consume what is not consumed domestically. The USA depends on Chinese imports for additional consumption encouraged by its low rate of savings. The two economies are locked in a mutual dependence.

Research limitations/implications

Key research implications are that there should be more focus on domestic macroeconomic policies since these are the root causes of the trade imbalance. This is not to say that trade frictions centering on jobs, subsidies and competition in high technology are unimportant. However, without the resolution of differences in the management of macroeconomic policies, trade conflicts between the USA and China will continue.

Practical implications

Practical implications are huge, in some ways much more important than the academic implications. Macroeconomic policy differences in savings, investment, government spending, taxation and infrastructure are important. Furthermore, there are available tools in both China and the USA to manage the macroeconomy, particularly, monetary and fiscal policy.

Social implications

One implication of this paper is that satisfaction or dissatisfaction of workers is dependent on income distribution which in turn affects trade. Treatment of people in different socioeconomic categories, such as the elderly, the young, and those at working age are a function of macroeconomic policies.

Originality/value

Many people have written about macroeconomics. It is a conventional subfield of economics. The originality of this paper lies in its advocacy of a shift of focus and attention and in the argument that traditional macroeconomics is related to trade. Despite its importance, macroeconomics has not been the center of attention for most political scientists, though economists have made it more central.

Details

International Trade, Politics and Development, vol. 8 no. 1
Type: Research Article
ISSN: 2586-3932

Keywords

Open Access
Article
Publication date: 17 March 2023

Yen Sun, Citra Amanda and Berty Caroline Centana

This research aims to determine the factors that affected Bitcoin price return in the period before and during the COVID-19 pandemic.

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Abstract

Purpose

This research aims to determine the factors that affected Bitcoin price return in the period before and during the COVID-19 pandemic.

Design/methodology/approach

The independent variables used in this study are hashrate, transaction volume, social media and some macroeconomics variables. The data are processed using the vector error correction model (VECM) to determine the short-term and long-term relationships between variables.

Findings

The research shows that (1) Twitter and Gold significantly affected Bitcoin in the short term before the COVID-19 pandemic; (2) hashrate, transaction volume, Twitter and the financial stress index had a significant effect on Bitcoin in the long term before the COVID-19 pandemic; (3) the volatility index had a significant effect on Bitcoin in the short term during the COVID-19 pandemic; and (4) hashrate, transaction volume, Twitter and CHF/USD had a significant effect on Bitcoin in the long term during the COVID-19 pandemic.

Research limitations/implications

This research provides explanation about factors affecting Bitcoin so investors and regulators can pay more attention and prepare for the potential risks as well as to get a good understanding of market conditions for greater crypto adoption in the future.

Originality/value

The novelty in this study is the various factors driving the Bitcoin price were analyzed before and during the COVID-19 pandemic including the social media, as sentiment, interestingly, is being a predictive power for Bitcoin price return.

Details

Asian Journal of Accounting Research, vol. 8 no. 3
Type: Research Article
ISSN: 2459-9700

Keywords

Open Access
Article
Publication date: 30 April 2024

Qiuqin Li and Xuemei Jiang

This article summarizes the international scientific research output of global forest product models, infers future research trends and provides reference for quantitative…

Abstract

Purpose

This article summarizes the international scientific research output of global forest product models, infers future research trends and provides reference for quantitative analysis and mathematical modeling of Chinese forest product problems, with the aim of contributing to promoting domestic production of Chinese forest products and strengthening international trade competitiveness of forest products.

Design/methodology/approach

In 1999, Joseph Buongiorno, a scholar at the University of Wisconsin in the United States of America, proposed the global forest products model (GFPM), which was first applied to research in the global forestry sector. GFPM is a recursive dynamic model based on five assumptions: macroeconomics, local equilibrium, dynamic equilibrium, forest product conversion flow and trade inertia. Using a certain year from 1992 to present as the base period, it simulates and predicts changes in prices, production and import and export trade indicators of 14 forest products in 180 countries (regions) through computer programs. Its advantages lie in covering a wide range of countries and a wide variety of forest products. The data mainly include forest resource data, forest product trade data, and other economic data required by the model, sourced from the Food and Agriculture Organization (FAO) of the United Nations and the World Bank, respectively.

Findings

Compared to international quantitative and modeling research in the field of forest product production and trade, China's related research is not comprehensive and in-depth, and there is not much quantitative and mathematical modeling research, resulting in a significant gap. This article summarizes the international scientific research output of global forest product models, infers future research trends, and provides reference for quantitative analysis and mathematical modeling of Chinese forest product problems, with the aim of contributing to promoting domestic production of Chinese forest products and strengthening international trade competitiveness of forest products.

Originality/value

On the basis of summarizing and analyzing the international scientific research output of GFPM, sorting out the current research status and progress at home and abroad, this article discusses potential research expansion directions in 10 aspects, including the types, yield and quality of domestic forest product production, international trade of forest products, and external impacts on the forestry system, in order to provide new ideas for global forest product model research in China.

Details

Forestry Economics Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2631-3030

Keywords

Content available
Book part
Publication date: 9 November 2023

Abstract

Details

Modeling Economic Growth in Contemporary Poland
Type: Book
ISBN: 978-1-83753-655-9

Open Access
Article
Publication date: 25 April 2024

Armando Urdaneta Montiel, Emmanuel Vitorio Borgucci Garcia and Segundo Camino-Mogro

This paper aims to determine causal relationships between the level of productive credit, real deposits and money demand – all of them in real terms – and Gross National Product…

Abstract

Purpose

This paper aims to determine causal relationships between the level of productive credit, real deposits and money demand – all of them in real terms – and Gross National Product between 2006 and 2020.

Design/methodology/approach

The vector autoregressive technique (VAR) was used, where data from real macroeconomic aggregates published by the Central Bank of Ecuador (BCE) are correlated, such as productive credit, gross domestic product (GDP) per capita, deposits and money demand.

Findings

The results indicate that there is no causal relationship, in the Granger sense, between GDP and financial activity, but there is between the growth rate of real money demand per capita and the growth rate of total real deposits per capita.

Originality/value

The study shows that bank credit mainly finances the operations of current assets and/or liabilities. In addition, economic agents use the banking system mainly to carry out transactional and precautionary activities.

Details

Journal of Economics, Finance and Administrative Science, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2077-1886

Keywords

Open Access
Article
Publication date: 18 October 2023

Ivan Soukal, Jan Mačí, Gabriela Trnková, Libuse Svobodova, Martina Hedvičáková, Eva Hamplova, Petra Maresova and Frank Lefley

The primary purpose of this paper is to identify the so-called core authors and their publications according to pre-defined criteria and thereby direct the users to the fastest…

Abstract

Purpose

The primary purpose of this paper is to identify the so-called core authors and their publications according to pre-defined criteria and thereby direct the users to the fastest and easiest way to get a picture of the otherwise pervasive field of bankruptcy prediction models. The authors aim to present state-of-the-art bankruptcy prediction models assembled by the field's core authors and critically examine the approaches and methods adopted.

Design/methodology/approach

The authors conducted a literature search in November 2022 through scientific databases Scopus, ScienceDirect and the Web of Science, focussing on a publication period from 2010 to 2022. The database search query was formulated as “Bankruptcy Prediction” and “Model or Tool”. However, the authors intentionally did not specify any model or tool to make the search non-discriminatory. The authors reviewed over 7,300 articles.

Findings

This paper has addressed the research questions: (1) What are the most important publications of the core authors in terms of the target country, size of the sample, sector of the economy and specialization in SME? (2) What are the most used methods for deriving or adjusting models appearing in the articles of the core authors? (3) To what extent do the core authors include accounting-based variables, non-financial or macroeconomic indicators, in their prediction models? Despite the advantages of new-age methods, based on the information in the articles analyzed, it can be deduced that conventional methods will continue to be beneficial, mainly due to the higher degree of ease of use and the transferability of the derived model.

Research limitations/implications

The authors identify several gaps in the literature which this research does not address but could be the focus of future research.

Practical implications

The authors provide practitioners and academics with an extract from a wide range of studies, available in scientific databases, on bankruptcy prediction models or tools, resulting in a large number of records being reviewed. This research will interest shareholders, corporations, and financial institutions interested in models of financial distress prediction or bankruptcy prediction to help identify troubled firms in the early stages of distress.

Social implications

Bankruptcy is a major concern for society in general, especially in today's economic environment. Therefore, being able to predict possible business failure at an early stage will give an organization time to address the issue and maybe avoid bankruptcy.

Originality/value

To the authors' knowledge, this is the first paper to identify the core authors in the bankruptcy prediction model and methods field. The primary value of the study is the current overview and analysis of the theoretical and practical development of knowledge in this field in the form of the construction of new models using classical or new-age methods. Also, the paper adds value by critically examining existing models and their modifications, including a discussion of the benefits of non-accounting variables usage.

Details

Central European Management Journal, vol. 32 no. 1
Type: Research Article
ISSN: 2658-0845

Keywords

Content available
Book part
Publication date: 9 November 2023

Abstract

Details

Macroeconomic Risk and Growth in the Southeast Asian Countries: Insight from Indonesia
Type: Book
ISBN: 978-1-83797-043-8

Open Access
Article
Publication date: 12 June 2023

Wasanthi Madurapperuma

GDP growth, money growth and inflation are essential to an economy's macroeconomic stability and have a direct impact on the policymaking process. Sri Lanka is currently concerned…

7583

Abstract

Purpose

GDP growth, money growth and inflation are essential to an economy's macroeconomic stability and have a direct impact on the policymaking process. Sri Lanka is currently concerned about high inflation. Inflation is a monetary phenomenon. Inflation has been caused by monetary policy in several nations. According to the economic theories of Karl Marx, Irving Fisher and Milton Friedman, a continuous increase in the money supply causes inflation. This paper aims to investigate the relationship between Sri Lanka's GDP growth, money growth and inflation.

Design/methodology/approach

An econometric model and the economic theories of Fisher and Friedman are used to figure out how money supply, inflation and economic growth are linked. Between 1990 and 2021, data were gathered from secondary sources.

Findings

The increase in the money supply is found to cause inflation. Inflation has negative effects on both short- and long-term economic growth. Long-term, the increase in money supply has a negative effect on economic growth.

Research limitations/implications

According to research, the money supply and inflation are inextricably linked, and the money supply has a direct impact on economic growth. As a result, the government should have an appropriate monetary policy and proposals to control inflation levels and stimulate economic growth.

Originality/value

The paper adds to the existing literature in two ways. First, it fills in the lack of studies in Sri Lanka, where there are no papers on this important relationship, especially with a modern econometric study. Second, it tries to shed light on the asymmetric shocks (both positive and negative shocks and changes) between the three variables, which was not done in previous studies.

Details

Journal of Money and Business, vol. 3 no. 2
Type: Research Article
ISSN: 2634-2596

Keywords

Content available
Article
Publication date: 16 May 2023

Franklin G. Mixon

30902

Abstract

Details

Journal of Financial Economic Policy, vol. 15 no. 3
Type: Research Article
ISSN: 1757-6385

Open Access
Article
Publication date: 20 December 2022

Cristian Barra and Nazzareno Ruggiero

Using data for a set of 32 Sub-Saharan countries over the years 2000, 2005 and 2010, the paper investigates the effects of domestic governmental stability upon emigration and…

Abstract

Purpose

Using data for a set of 32 Sub-Saharan countries over the years 2000, 2005 and 2010, the paper investigates the effects of domestic governmental stability upon emigration and assesses whether education and gender shape the relationship.

Design/methodology/approach

The paper adopts instrumental variable (IV) Poisson regressions and two-stage least squares (2SLS) as robustness tests.

Findings

The paper suggests that increased governmental stability has a larger impact on the emigration of high-skilled individuals. Nevertheless, once emigrants are partitioned according to both education and gender, the authors find evidence of a larger impact of stability on the emigration of highly educated females.

Research limitations/implications

The empirical findings may lack generalizability because of the chosen research approach. Then, researchers are encouraged to test the proposed propositions further.

Practical implications

The paper includes implications that can be drawn for both the growth and the development of Sub-Saharan Africa.

Originality/value

This paper fulfills an identified need to study how both education and gender shape the relationship between domestic governmental stability and emigration.

Details

Journal of Economic Studies, vol. 50 no. 7
Type: Research Article
ISSN: 0144-3585

Keywords

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