Search results

1 – 10 of over 19000
To view the access options for this content please click here
Article
Publication date: 7 July 2020

Yu Ma, Jun Shi and Qiang Ji

This paper empirically tests the impact of capital sudden stops on the economic growth using quarterly data from 49 emerging economies.

Abstract

Purpose

This paper empirically tests the impact of capital sudden stops on the economic growth using quarterly data from 49 emerging economies.

Design/methodology/approach

This paper applies the GMM dynamic panel estimation method.

Findings

The results show that capital sudden stops can significantly inhibit the economic growth of emerging economies. It was also found that the inhibiting effect on low-savings-rate economies is greater, but less on high-savings-rate economies. In addition, this paper examined the impact of different types of capital sudden stops on economic growth in emerging economies. The results reveal that the impact of sudden stops of direct investment is not significant.

Originality/value

Little existing research considers the impact of capital sudden stops through the perspective of savings rate differences. Based on our research using the GMM model, we argue that capital sudden stops will lead to a decline in investment kinetic energy in emerging economies, and therefore, a decline in economic growth. There are also few studies on the economic effects of capital sudden stops. And the time series model is generally used in a single economy. This paper, however, uses the data from 49 emerging economies and takes the panel approach to more comprehensively study the capital sudden stops of emerging economies.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

To view the access options for this content please click here
Article
Publication date: 1 October 2004

George Hondroyiannis

This paper investigates the long‐ and short‐run determinants of aggregate private savings in Greece employing data over the period 1961‐2000. The long‐run savings function…

Abstract

This paper investigates the long‐ and short‐run determinants of aggregate private savings in Greece employing data over the period 1961‐2000. The long‐run savings function is estimated based on an extended life‐cycle hypothesis taking into account the economic and demographic developments during this period. A long‐run saving function sensitive to fertility changes, old dependency ratio, real interest rate, liquidity and public finances is found to exist and the importance of short‐run deviations is presented using vector error‐correction model estimation. The empirical evidence suggests the existence of a stable long‐run savings function in Greece both in the long‐ and short‐run periods and the policy implications of such a relationship are presented.

Details

Journal of Economic Studies, vol. 31 no. 5
Type: Research Article
ISSN: 0144-3585

Keywords

To view the access options for this content please click here
Article
Publication date: 27 July 2012

Amir Shoham and Miki Malul

The motivation for conducting this research came from the current global economic crisis. One outcome of the crisis is the awareness of the need for a better understanding…

Abstract

Purpose

The motivation for conducting this research came from the current global economic crisis. One outcome of the crisis is the awareness of the need for a better understanding of what causes people to save. Low savings rates in Western countries in general and in the USA in particular are the roots of the crisis. Furthermore, saving is probably one of the most important economic variables that impact the local and global environment. The current economic literature neglects the crucial impact that culture has on saving as a consequence we do not fully understand the causes of different saving rates in different societies. The purpose of this paper is to explore the variable of cultural attitudes as an explanation for variations in national savings rates.

Design/methodology/approach

The phenomenon of diminishing personal savings cannot be explained simply by the variables studied in the current economic literature, such as interest rates, age of the population and wealth as expressed by GDP per capita. This paper explores the role that cultural attributes play in affecting the level of savings in different countries. The paper uses cross‐national data to determine the effect of cultural attributes on savings rates.

Findings

Cultural variables, particularly the level of uncertainty avoidance and collectivism, have a significant impact on the level of savings. As the level of uncertainty avoidance increases, the level of national savings increases. In addition, the more collectivist the society, the higher the savings rate.

Originality/value

Policy makers must realize that simply changing economic factors such as interest rates may not have the desired effect of raising savings rates. They must also take into account the cultural attributes of the country when making policy.

Details

Cross Cultural Management: An International Journal, vol. 19 no. 3
Type: Research Article
ISSN: 1352-7606

Keywords

To view the access options for this content please click here
Article
Publication date: 3 May 2019

Jeanette Carlsson Hauff

The purpose of this paper is to contribute to the existing literature of driving and impeding switching factors by operationalizing the catalyst factor of perceived power…

Abstract

Purpose

The purpose of this paper is to contribute to the existing literature of driving and impeding switching factors by operationalizing the catalyst factor of perceived power among customers. Acknowledging the importance of trust in a financial context, a trust-based framework for the analysis is used. The study explicitly analyzes factors of importance for subsequent switching of banks for empowered customers (i.e. savers) and low-on-power customers (i.e. borrowers).

Design/methodology/approach

The study measures factors driving or impeding switch of service provider, together with measures of trust and power using online survey methods. The sample is intended to focus on savers and borrowers, defined quantitatively as well as perception wise. Through a multi-group SEM analysis, differences between the samples of savers and borrowers are analyzed. The dependent variable was in both cases inclination to switch.

Findings

The paper manages to define differences between empowered and less empowered customers, such as borrowers and savers. The mediating effect of trust prevails only for borrowers: here, the only effect on switching behavior stems from a full mediation of stability through trust. For savers, direct influences of both service failure and lack of involvement on trust are of major importance. The importance of trust, however, is lacking; for the sample of savers, the link between trust and switching behavior is insignificant.

Practical implications

The results may be used as a tool box in order to address consumer switching behavior and mobility in the financial services market. The biggest obstacle for switching banks among savers is the low level of involvement. This has clear implications regarding how to increase switching, e.g., by raising interest. Focusing instead on borrowers, stability of the chosen financial institution turned out to be the most important factor.

Originality/value

This paper introduces a view on consumer switching behavior, taking into account differences regarding service provider relations (empowered savers vs less empowered borrowers) and the importance of trust in these two settings. The paper introduces trust as a mediator between switching behavior and four determinants: stability, personal relations, service failure and internet-related issues, and involvement.

Details

International Journal of Bank Marketing, vol. 37 no. 6
Type: Research Article
ISSN: 0265-2323

Keywords

To view the access options for this content please click here
Article
Publication date: 1 February 1994

Paul A. Herbig and Fred Palumbo

Within the last two decades, the Japanese economic machine has caughtup, if not overtaken, the US as the world′s leading economy. Japan hasvirtually conquered the American…

Abstract

Within the last two decades, the Japanese economic machine has caught up, if not overtaken, the US as the world′s leading economy. Japan has virtually conquered the American consumer electronics, semiconductor, and machine tool marketplace and, except for quotas, would have done the same for the automotive segment. One of the reasons given is of the Japanese innovative abilities. How truly innovative are the Japanese? In what ways do they innovatively prosper and struggle? Examines the innovative process in Japan, its advantages and disadvantages, and projects a future scenario for the Japanese.

Details

Marketing Intelligence & Planning, vol. 12 no. 1
Type: Research Article
ISSN: 0263-4503

Keywords

To view the access options for this content please click here
Article
Publication date: 1 March 2010

Paul L. Solano

A recent study found state bond bank participants continually realize considerable interest cost savings. Savings were calculated as differences in interest costs of bond…

Abstract

A recent study found state bond bank participants continually realize considerable interest cost savings. Savings were calculated as differences in interest costs of bond bank loans and the bond offerings participants would have sold as alternatives to loans, (alternative market offerings). The present evaluation determines the sources of the savings. Savings are generated by not only differences in issue characteristics of bond bank issues and alternative market offerings, but also differential impacts of the same market forces and institutional factors on the interest costs of both types of sales. These findings verify that bond bank issues and alternative market offerings sell in different sub-markets, and confirm municipal bond market segmentation.

Details

Journal of Public Budgeting, Accounting & Financial Management, vol. 22 no. 1
Type: Research Article
ISSN: 1096-3367

To view the access options for this content please click here
Book part
Publication date: 1 July 2004

John L. Peterman

A study of the price discounts granted by Morton Salt Company and other producers of table salt in the U.S. on their sales of table salt to grocery wholesalers and…

Abstract

A study of the price discounts granted by Morton Salt Company and other producers of table salt in the U.S. on their sales of table salt to grocery wholesalers and retailers. The discounts were found to be illegal under the Robinson-Patman Act by the Federal Trade Commission and the Supreme Court. The Commission and the Court believed that the discounts were unjustified price concessions granted to “large” buyers, consistent with the concerns of the Robinson-Patman Act. However, the evidence indicates that the most common discount – the “carload discount” – was received by virtually all buyers, regardless of the buyer’s size; the other discounts – “annual volume” discounts – though received primarily by “large” buyers, were likely cost based. The history of the discounts and likely reasons why they were granted are explored in detail.

Details

Antitrust Law and Economics
Type: Book
ISBN: 978-0-76231-115-6

To view the access options for this content please click here
Article
Publication date: 1 January 1979

ELISE WALKER

THE CAUSES AND EFFECTS OF DISINTERMEDIATION Disintermediation is a relatively new term on the financial scene in America. The term was first coined in mid‐1966 and has…

Abstract

THE CAUSES AND EFFECTS OF DISINTERMEDIATION Disintermediation is a relatively new term on the financial scene in America. The term was first coined in mid‐1966 and has since, to the dismay of many, become part of the daily vocabulary of bankers and economists. Originally, it sprang up to describe the outflow of funds from deposits at financial intermediaries (commercial banks, savings and loan associations and mutual savings banks) to investments yielding a higher return. Since that time, disintermediation, has taken on several additional forms such as fractional disintermediation, which addresses differences between the maximum interest rate that can be paid on a time deposit with a specified maturity at a financial intermediary and the interest rates prevailing on the similar instruments in the open market. Another new form of savings outflow is passbook disintermediation which will be discussed later. No matter which form of disintermediation is addressed, the same difficulty exists for the depository institutions — how to remain competitive when interest rates rise above the maximum ceiling rates allowed by law.

Details

Studies in Economics and Finance, vol. 3 no. 1
Type: Research Article
ISSN: 1086-7376

To view the access options for this content please click here
Article
Publication date: 10 May 2019

Kim Abildgren

The purpose of this paper is to explore the impact of regulation on previously unregulated banks’ balance-sheet growth using the 1880 Danish Savings Bank Act as a natural…

Abstract

Purpose

The purpose of this paper is to explore the impact of regulation on previously unregulated banks’ balance-sheet growth using the 1880 Danish Savings Bank Act as a natural experiment. With the Act, Danish savings banks became, for the first time, subject to regulation and supervision whereas commercial banks continued as unregulated institutions.

Design/methodology/approach

The main elements of the Act focussed on supervision and provisions to improve information transparency. The paper estimates the impact of the Act on the balance-sheet growth of Danish savings banks using bank-level panel data and a difference-in-differences approach.

Findings

The paper finds no indications that the Act had a negative effect on the balance-sheet growth of savings banks compared to commercial banks in the short run. Furthermore, there are indications of a positive effect after a couple of years. This suggests that regulation is not always a burden for the regulated institutions and might even have a positive impact on their business activity.

Originality/value

This paper is the first study using the introduction of banking supervision and regulation in the 1800s as a natural experiment to evaluate the causal effect of regulation on the balance-sheet growth of previously unregulated financial intermediaries.

Details

Journal of Financial Economic Policy, vol. 11 no. 4
Type: Research Article
ISSN: 1757-6385

Keywords

To view the access options for this content please click here
Book part
Publication date: 22 August 2018

Howard Bodenhorn

Saving is essential to the health of economies and households, yet relatively little scholarship investigates saving behaviors among the urban working class in the…

Abstract

Saving is essential to the health of economies and households, yet relatively little scholarship investigates saving behaviors among the urban working class in the nineteenth century. This chapter uses five surveys of industrial workers in 1880s New Jersey, an analysis of which reveals sophisticated saving behaviors consistent with life-cycle and precautionary theories. The mean saving rate was between 8% and 12% of annual income. Younger households saved less than older households. Householders with longer expected careers, on average, saved less. Life insurance and fraternal societies were the most popular saving vehicles, but workers also used savings banks and building and loan associations, alone and in combination.

1 – 10 of over 19000