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Open Access
Article
Publication date: 20 November 2023

Ezekiel Olamide Abanikanda and James Temitope Dada

Motivated by the negative effect of external shocks on the domestic economy, this study explores the role of financial sector development in absorbing the effect of external shocks

Abstract

Purpose

Motivated by the negative effect of external shocks on the domestic economy, this study explores the role of financial sector development in absorbing the effect of external shocks on macroeconomic volatility in Nigeria.

Design/methodology/approach

Autoregressive distributed lag and fully modify ordinary least square are used to examine the moderating effect of financial development in the link between external shocks and macroeconomic volatilities in Nigeria between 1986Q1 and 2019Q4. External shock is proxy using oil price shock, and financial development is proxy by domestic credit to the private sector and market capitalisation. At the same time, macroeconomic volatility is proxy by output and inflation volatilities. Macroeconomic volatilities are generated using generalised autoregressive conditional heteroskedasticity (GARCH 1,1).

Findings

The results indicate that domestic credit to the private sector significantly reduces output and inflation volatilities in Nigeria in the short and long run. However, market capitalisation promotes macroeconomic volatility. More specifically, financial development indicators play different roles in curtaining macroeconomic volatilities. The results also reveal that external shocks stimulate macroeconomic volatility in Nigeria in the short and long run. Nevertheless, the effects of external shocks on macroeconomic volatilities are reduced when the role of financial development is incorporated.

Practical implications

This study, therefore, concludes that strong financial sector development serves as a significant shock absorber in reducing the adverse effect of external shock on the domestic economy.

Originality/value

This study contributes to the extant studies by introducing a country-specific analysis into the empirical examination of how financial development can moderate the influence of external shock on macroeconomic volatilities.

Details

PSU Research Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2399-1747

Keywords

Open Access
Article
Publication date: 21 October 2019

Mohamed Samir Abdalla Zahran

The purpose of this paper is to explore and analyse the dynamic relationship between remittances inflows of Egyptians working abroad and asymmetric oil price shocks.

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Abstract

Purpose

The purpose of this paper is to explore and analyse the dynamic relationship between remittances inflows of Egyptians working abroad and asymmetric oil price shocks.

Design/methodology/approach

This study uses a vector autoregressive (VAR) model to explain the impulse response functions (IRFs) and the forecast error variance decomposition (FEVD). The rationale behind using these tools is its ability to examine the dynamic effects of our variables of interest.

Findings

The impulse response functions confirmed that remittance inflows have various responses to asymmetric oil price shocks. For instance, inflowing remittances increase in response to positive oil price shocks, while it decreases in response to negative oil price shocks. Also, the results indicate that the responses are significant in the short and medium-run and insignificant in the long run. The magnitude of these responses reaches its peak or trough in the third year. Further, the variance decomposition reveals that oil price decreases are more influential than oil price increases.

Originality/value

This means that remittances inflows in Egypt are pro-cyclical with oil price shocks. That explained by the fact that more than one-half of those remittances sent from GCC countries where real economic growth is very pro-cyclical with the oil prices. This empirical assessment will help policymakers to determine the behaviour of remittances and highlights the impact of different kinds of oil prices shocks on remittances. Unlike the little existing literature, this study is the first study applied the VAR model using a novel dataset spanning 1960-2016.

Details

Review of Economics and Political Science, vol. 8 no. 6
Type: Research Article
ISSN: 2356-9980

Keywords

Open Access
Article
Publication date: 2 November 2021

Injy Johnstone

The Group of 20 (G20) is tasked with responding to economic shocks in the global financial system, with COVID-19 having proved to be the most significant shock since the G20's…

1808

Abstract

Purpose

The Group of 20 (G20) is tasked with responding to economic shocks in the global financial system, with COVID-19 having proved to be the most significant shock since the G20's inception. COVID-19 also represents the first economic crisis accompanied by a concerted attempt to “build back better”, principally through a climate-compatible recovery. In 2021, there is little clarity as to the G20's response to this challenge, primarily due to considerable divergence in the green stimulus practices of its member states. The paper aims to investigate whether the G20, climate change and COVID-19 are critical juncture or critical wound.

Design/methodology/approach

Historical institutionalism (HI) suggests that one can explain an institution's future response by reference to its developmental pathway to date. This contribution adopts its concept of “critical junctures” to shed light on the G20's possible institutional response to COVID-19. The contribution undertakes a comparative analysis of the global financial crisis (GFC) and COVID-19 as possible critical junctures for the G20.

Findings

In doing so, the work demonstrates that the G20 “building back better” from COVID-19 requires a shift away from its institutional orthodoxy to a much larger degree than its response to the GFC. Accordingly, whilst both the GFC and COVID-19 may be considered critical junctures for the G20, only COVID-19 has the potential to be a “critical wound” that leads to institutional redundancy.

Research limitations/implications

Through interrogating this further, this exposition prospectively outlines two possible futures the G20 faces as a consequence of COVID-19: reform or redundancy. In this way, it offers an ex ante perspective on policy-reform options for the G20's ongoing response to COVID-19.

Practical implications

Whichever choice the G20 makes in its response to COVID-19 has profound consequences for global governance in an increasingly unpredictable world.

Originality/value

Herein lies the importance of an exploratory assessment of COVID-19 as a critical juncture or a critical wound for the G20.

Details

Fulbright Review of Economics and Policy, vol. 1 no. 2
Type: Research Article
ISSN: 2635-0173

Keywords

Open Access
Article
Publication date: 28 September 2022

Yuxin Zhang, Wei Dong, Junyan Wang, Congcong Che and Lefei Li

Through this research study, the authors found that digital thread has made significant progress in the life cycle management of the US Air Force. The authors hope that by…

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Abstract

Purpose

Through this research study, the authors found that digital thread has made significant progress in the life cycle management of the US Air Force. The authors hope that by reviewing similar studies in the aerospace field, the meaning of digital thread can be summarized and applied to a wider range of fields. In addition, theoretically, the definition of digital twin and digital thread are not unified. The authors hope that the comparison of digital thread and digital twin will better enable scholars to distinguish between the two concepts. Besides, the authors are also looking forward that more people will realize the significance of digital thread and carry out future research.

Design/methodology/approach

Complete research about digital thread and the relevant concept of the digital twin is conducted. First, by searching in Google Scholar with the keyword “digital thread”, the authors filter results and save literature with high relevance to digital thread. The authors also track these papers’ references for more paper of digital thread and digital twin. After removing the duplicate and low-relevance literature, 72 digital thread-related literature studies are saved and further analyzed from the perspective of time development, application field and research directions.

Findings

Digital thread application in industries other than the aviation manufacturing industry is still relatively few, and the research on the application of digital thread in real industrial scenarios is mainly at the stage of framework design and design-side decision optimization. In addition, the digital thread needs a new management mechanism and organizational structure to realize landing. The new management mechanism and the process can adapt to the whole life cycle management process based on the digital thread, manage the data security and data update, and promote the digital thread to play a better effect on the organizational management.

Practical implications

Based on a review of digital thread, future research directions and usage suggestions are given. The fault diagnosis of high-speed train bogie as an example shows the effectiveness of the method and also partially demonstrates the advantages and effects brought by the digital thread connecting the data models at various stages.

Originality/value

This paper first investigates and analyzes the theoretical connotation and research progress of digital thread and gives a complete definition of digital thread from the perspective of the combination of digital thread and digital twins. Next, the research process of digital thread is reviewed, and the application fields, research directions and achievements in recent years are summarized. Finally, taking the fault diagnosis of high-speed train bogie as an example partially demonstrates the advantages and effects brought by the digital thread connecting the data models at various stages.

Details

Digital Transformation and Society, vol. 1 no. 2
Type: Research Article
ISSN: 2755-0761

Keywords

Open Access
Article
Publication date: 31 October 2023

Alberto Giubilini and Paolo Minetola

The purpose of this study is to evaluate the 3D printability of a multimaterial, fully self-supporting auxetic structure. This will contribute to expanding the application of…

Abstract

Purpose

The purpose of this study is to evaluate the 3D printability of a multimaterial, fully self-supporting auxetic structure. This will contribute to expanding the application of additive manufacturing (AM) to new products, such as automotive suspensions.

Design/methodology/approach

An experimental approach for sample fabrication on a multiextruder 3D printer and characterization by compression testing was conducted along with numerical simulations, which were used to support the design of different auxetic configurations for the jounce bumper.

Findings

The effect of stacking different auxetic cell modules was discussed, and the findings demonstrated that a one-piece printed structure has a better performance than one composed of multiple single modules stacked on top of each other.

Research limitations/implications

The quality of the 3D printing process affected the performance of the final components and reproducibility of the results. Therefore, researchers are encouraged to further study component fabrication optimization to achieve a more reliable process.

Practical implications

This research work can help improve the manufacturing and functionality of a critical element of automotive suspension systems, such as the jounce bumper, which can efficiently reduce noise, vibration and harshness by absorbing impact energy.

Originality/value

In previous research, auxetic structures for the application of jounce bumpers have already been suggested. However, to the best of the authors’ knowledge, in this work, an AM approach was used for the first time to fabricate multimaterial auxetic structures, not only by co-printing a flexible thermoplastic polymer with a stiffer one but also by continuously extruding multilevel structures of auxetic cell modules.

Details

Rapid Prototyping Journal, vol. 29 no. 11
Type: Research Article
ISSN: 1355-2546

Keywords

Open Access
Article
Publication date: 29 March 2021

Rasha Qutb

Migrants’ remittances to Egypt have increased considerably in both size and importance over the past 40 years. This increase has made Egypt one of the top remittance recipients in…

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Abstract

Purpose

Migrants’ remittances to Egypt have increased considerably in both size and importance over the past 40 years. This increase has made Egypt one of the top remittance recipients in the world and the leading recipient country in the Middle East. As migrant remittances are one of Egypt's main sources of foreign capital, this study aims to identify the impact of these remittances on economic growth.

Design/methodology/approach

The study collects annual data on migrant remittances sent to Egypt during the period 1980–2017. The study uses the Augmented Dickey–Fuller test and Johnsen's Co-integration test to establish long-run relationships between variables. Then, a vector error correction model (VECM) is used to combine long-run and short-run dynamics, and a Granger causality test is performed. Finally, diagnostic tests of the VECM are conducted.

Findings

Results reveal that migrants’ remittances to Egypt are countercyclical in the sense that they have a long-term negative impact on economic growth. These results are determined by the Granger causality between migrants' remittances, inflation rate and imports.

Practical implications

The study can help policymakers to develop appropriate policies to turn migrants' remittances into a reliable source of capital that could result in a stable economic growth.

Originality/value

Although various empirical studies have examined the growth effect of remittances, most of them are based on cross-country data. This study contributes to the field by attempting to close a gap in the literature by empirically analyzing the impact of remittances on a single country over a long period.

Details

Review of Economics and Political Science, vol. 7 no. 3
Type: Research Article
ISSN: 2356-9980

Keywords

Open Access
Article
Publication date: 25 September 2017

Issah Justice Musah-Surugu, Albert Ahenkan, Justice Nyigmah Bawole and Samuel Antwi Darkwah

The much-trumpeted Green Climate Fund and several other official financial mechanisms for financing adaptation to climate change under the UN Framework Convention on Climate…

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Abstract

Purpose

The much-trumpeted Green Climate Fund and several other official financial mechanisms for financing adaptation to climate change under the UN Framework Convention on Climate Change have fallen short in meeting adaptation needs. Many poorer people are still grappling with the scourge of climate change impacts. Consequently, there has been a dominant research focus on climate change financing emanating from official development assistance (ODA), Adaptation Fund, public expenditure and private sector support. However, there has been little attempt to examine how migrants’ remittances can close adaptation financing gaps at the local level, ostensibly creating a large research gap. This paper aims to argue that migrants’ remittances provide a unique complementary opportunity for financing adaptation and have a wider impact on those who are extremely vulnerable to climate change.

Design/methodology/approach

The paper is aligned to the qualitative research approach. Both secondary and primary data acquired through interviews and focus group discussions were used for the study. Multiple sampling methods were also used to select the respondents.

Findings

The findings show that remittances are used to finance both incremental costs of households’ infrastructure and consumption needs, as well as additional investment needs to be occasioned by ongoing or expected changes in climate.

Originality/value

In the wake of dwindling government/public revenue, ODA and poor commitment of Annex II countries to fulfil their financial obligations, the study makes the following recommendations: First, the financial infrastructure underpinning money transfers in both sending and recipient countries should be improved to make transfers attractive. Second, significant steps should be taken to reduce the fees on remittance services, especially for the small transfers typically made by poor migrants. Finally, adequate climatic information should be made available to local people to ensure that remittances are applied to the right adaptation option to avoid maladaptation.

Details

International Journal of Climate Change Strategies and Management, vol. 10 no. 1
Type: Research Article
ISSN: 1756-8692

Keywords

Open Access
Article
Publication date: 17 November 2023

Sami Zaki Alabdulwahab and Ahmed Sabry Abou-Zaid

This paper aims to empirically investigate the sources of real exchange rate fluctuations in Egypt using structural vector autoregression (SVAR). The data covers the period…

Abstract

Purpose

This paper aims to empirically investigate the sources of real exchange rate fluctuations in Egypt using structural vector autoregression (SVAR). The data covers the period between 1980 and 2016, where exchange regime has been changed more than once.

Design/methodology/approach

This paper investigates the source of real exchange rate fluctuations for the period between 1980 and 2016 using the SVAR method. The SVAR method will incorporate real gross domestic product (GDP), real effective exchange rate (REER) and price level in a multidimensional equations system. However, impulse response function (IRF) and error variance decompositions (EVDC) will be generated by the system to have a behavioral insight of real exchange rate in response to economic shocks.

Findings

The IRF and EVDC results indicate a significant impact of demand shocks over the real exchange rate relative to supply shocks and monetary shocks in the period between 1980 and 2016. On the other hand, monetary shocks will have a negligible effect on the real exchange rate in the short run and converging to its previous level in the covering period of the study.

Originality/value

In the best of the authors' knowledge, the topic of the source of the real exchange rate fluctuations in Egypt has not been discussed in a wide range due to the lack of time series data. However, this study provides constructed data for REER for Egypt with the published method in the International Monetary Fund (IMF). Furthermore, the study involves theoretical and econometric modeling to ensure the reliability of the economic results.

Details

Review of Economics and Political Science, vol. 9 no. 1
Type: Research Article
ISSN: 2356-9980

Keywords

Open Access
Article
Publication date: 25 July 2019

Van Anh Pham

The purpose of this paper is to evaluate and analyze impacts of the monetary policy (MP) – money aggregate and interest rate – on the exchange rate in Vietnam.

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Abstract

Purpose

The purpose of this paper is to evaluate and analyze impacts of the monetary policy (MP) – money aggregate and interest rate – on the exchange rate in Vietnam.

Design/methodology/approach

The study uses data over the period of 2008–2018 and applies the vector autoregression model, namely recursive restriction and sign restriction approaches.

Findings

The main empirical findings are as follows: a contraction of the money aggregate significantly leads to the real effective exchange rate (REER) depreciating and then appreciating; a tightening of the interest rate immediately causes the REER appreciating and then depreciating; and both the money aggregate and the interest rate strongly determine fluctuations of the REER.

Originality/value

The quantitative results imply that the MP affects the REER considerably.

Details

Journal of Asian Business and Economic Studies, vol. 26 no. 2
Type: Research Article
ISSN: 2515-964X

Keywords

Open Access
Article
Publication date: 24 October 2018

Sunil Tankha, Sunita Ranabhat, Laxmi Dutt Bhatta, Rucha Ghate and Nand Kishor Agrawal

Developed countries agreed at COP15 to pay US$100bn annually for adaptation and mitigation in developing countries. This paper aims to evaluate how prepared are donors and…

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Abstract

Purpose

Developed countries agreed at COP15 to pay US$100bn annually for adaptation and mitigation in developing countries. This paper aims to evaluate how prepared are donors and recipients to spend this money well by analyzing institutional and organizational capabilities for climate change adaptation in least developed country (LDC) administrations using the case of Nepal, a country which can be considered to be an archetypal LDC.

Design/methodology/approach

The authors conducted over 100 in-depth structured qualitative interviews with government officials from across the organizational chain in the ministries concerned with climate change, ranging from the lowest-ranked employee to just under the ministerial ranks. This was supplemented with detailed surveys of three representative communities from different ecological zones in Nepal. Data were analyzed using Ostrom’s IAD framework.

Findings

Local administrations are more motivated and capable than are given credit for by donors but nevertheless face critical barriers in being able to function autonomously and confront climate change challenges. These barriers create three interrelated challenges: An organizational challenge to create intrinsic incentives which empower and grant autonomy to front line agents, an institutional challenge to go beyond accountability-focused process validation and a policy-choice challenge which avoids the temptation to write aspirational policies without clear and feasible strategies to obtain the resources necessary for their implementation.

Practical implications

The findings point to ways climate assistance can be restructured for more reach and effectiveness.

Originality/value

This paper fills a gap in the literature because community structures and institutions have been extensively analyzed in the context of adaptation, but despite being criticized, administrative structures have rarely been directly studied.

Details

International Journal of Climate Change Strategies and Management, vol. 11 no. 3
Type: Research Article
ISSN: 1756-8692

Keywords

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