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1 – 10 of over 1000Mohammad Rifat Rahman, Md. Mufidur Rahman, Athkia Subat and Tanzika Imam Tarin
This study empirically aims to examine the relationship between Bangladesh’s pharmaceutical industry growth and macroeconomic indicators such as the inflation rate, gross domestic…
Abstract
Purpose
This study empirically aims to examine the relationship between Bangladesh’s pharmaceutical industry growth and macroeconomic indicators such as the inflation rate, gross domestic product (GDP) growth, foreign direct investment (FDI) inflows, exchange rate and export growth through the long- and short-run relationship.
Design/methodology/approach
Using the time series data from 1986 to 2020, this study was developed based on the autoregressive distributed lag (ARDL) framework for co-integration. In contrast, the Toda–Yamamoto Granger Causality approach was also used for finding the direction of causality.
Findings
This study used the ARDL bounds test, which found strong co-integration among the variables, indicating a long-term relationship between them. In the long run, inflation, exchange rate and export growth significantly positively influence the pharmaceutical industry’s growth. Surprisingly, an FDI inflow has a negative impact. In the short term, the exchange rate and GDP growth were found to influence the growth of the pharmaceutical industry positively. Bidirectional causality between the growth of the pharmaceutical industry and the exchange rate was also identified using the Granger causality approach.
Research limitations/implications
This paper emphasizes developing the policy as well as making concrete decisions regarding the development of the pharmaceutical industry and economic development in Bangladesh. The results also highlight the necessity for strategic macroeconomic management to support this sector’s long-term development and global competitiveness.
Originality/value
To the best of the authors’ knowledge, this paper is conducted to identify the short- and long-run relationship of pharmaceutical industry development with the economic indicators and progress, where no study has been found on this dimension.
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Omer Cayirli, Koray Kayalidere and Huseyin Aktas
The purpose of this paper is to investigate the impact of changes in credit stock on real and financial indicators in Turkey with a focus on conditional and time-varying dynamics.
Abstract
Purpose
The purpose of this paper is to investigate the impact of changes in credit stock on real and financial indicators in Turkey with a focus on conditional and time-varying dynamics.
Design/methodology/approach
In addition to lag-augmented vector autoregression (LA-VAR) based time-varying Granger causality tests, threshold models and a research setting that identifies high/low states of credit growth based on 24-month moving averages are used to explore regime-dependent behavior. For investigating the asymmetric dynamics, the authors use a methodology that identifies good/bad news in credit growth based on 24-month moving averages and standard deviations.
Findings
Results strongly suggest that the impact of changes in credit stock induces conditional responses. Moreover, we find evidence for asymmetric responses. In the case of Turkey, efforts to spur growth through credit produce a strong negative byproduct, a depreciation in the exchange rate. The authors also find that changes in credit stock have become more relevant for uncertainties in inflation and exchange rate expectations, particularly in the era after mid-2018 in which credit growth volatility has increased noticeably.
Originality/value
This study provides a comprehensive analysis of time-varying and conditional responses to a change in credit stock in a major emerging economy. Using a moving threshold based only on the available information in the analysis of state-dependency represents a new approach.
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Billy Prananta and Constantinos Alexiou
The authors explore the relationship between the exchange rate, bond yield and the stock market as well as the effect of capital market dynamics on the exchange rate before and…
Abstract
Purpose
The authors explore the relationship between the exchange rate, bond yield and the stock market as well as the effect of capital market dynamics on the exchange rate before and during the COVID-19 pandemic.
Design/methodology/approach
The authors employ a non-linear autoregressive distributed lag (NARDL) methodology using daily data of the Indonesian economy over the period 2012–2021.
Findings
Whilst, over the full sample period, the authors find no cointegration between the exchange rate, the 10-year bond yield and stock market, for the COVID-19 period, evidence of cointegration is present. Furthermore, the results suggest that asymmetric effects are evident both in the short as well as the long run.
Originality/value
To the best of the authors’ knowledge, this is the first time that the relationship between the exchange rate, bond yield and the stock market as well as the effect of capital market dynamics on the exchange rate before and during the COVID-19 pandemic has been explored in the case of the Indonesian economy.
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Hua Liu and Shaobo Wei
Drawing upon resource dependence theory, this study aims to examine how a firm’s information technology (IT) capabilities (i.e. IT integration and IT reconfiguration) influence…
Abstract
Purpose
Drawing upon resource dependence theory, this study aims to examine how a firm’s information technology (IT) capabilities (i.e. IT integration and IT reconfiguration) influence its responses to disruptions – bridging with a current supplier and buffering with an alternative supplier. We further examine how such relationships are moderated by the firm–supplier relative dependence (i.e. firm dependence advantage and supplier dependence advantage).
Design/methodology/approach
Based on data from 141 match-paired surveys of firms in China, we test our model.
Findings
Our study finds that IT integration positively influences bridging and IT reconfiguration positively influences buffering. Furthermore, our findings indicate that the positive impact of IT integration on bridging is negatively influenced by the firm’s dependence (FD) advantage but positively moderated by the supplier’s dependence advantage. By contrast, the positive impact of IT reconfiguration on buffering is negatively influenced by the FD advantage.
Originality/value
Our study provides a more nuanced insight into the effects of IT capabilities on disruption responses and a better understanding of the buyer–supplier dependence boundary conditions under which these effects vary.
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Mohamed Amine Benchekroun and Abderrazak Boumane
The purpose of this paper is to define the local integration rate and how it is calculated to assess its relevance as a national performance indicator for the Moroccan automotive…
Abstract
Purpose
The purpose of this paper is to define the local integration rate and how it is calculated to assess its relevance as a national performance indicator for the Moroccan automotive industry.
Design/methodology/approach
The research methodology first followed a systematic review approach through the analysis of published research articles and academic works. This study then followed a qualitative approach based on semi-structured interviews with various actors in the Moroccan automotive industry. Finally, the findings of this work were reinforced by a case study to analyze the supply chain of a locally produced vehicle.
Findings
The results indicate that the local integration rate as calculated today overestimates the performance of the automotive industry and does not systematically guarantee a significant creation of value added.
Research limitations/implications
Due to the confidentiality of the data in terms of turnover, payroll and purchase prices as well as the large number of suppliers in the different supply chains of the car manufacturer, the case study focused on only one of the six existing ecosystems.
Originality/value
On the basis of research work on the Moroccan automotive industry as well as interviews with various actors, the local integration rate is unanimously considered as a viable performance indicator. This study has not only led us to the method of calculating this rate by the Ministry of Industry but also demonstrated its limitations while proposing a new method of calculation to increase the value added.
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Ning Qi, Shiping Lu and Hao Jing
In the context of constructing an integrated national strategic system, collaborative innovation among enterprises is the current social focus. Therefore, in order to find the…
Abstract
Purpose
In the context of constructing an integrated national strategic system, collaborative innovation among enterprises is the current social focus. Therefore, in order to find the interest relationship between multiple game subjects, to explore the influencing factors of collaborative innovation of civil-military integration enterprises. This paper constructs a collaborative innovation mechanism for military–civilian integration involving four game subjects (military enterprises, private enterprises, local governments, and science and technology intermediaries). It aims to solve and reveal the evolutionary game relationship among the four parties.
Design/methodology/approach
To explore the mechanism of military–civilian collaborative innovation involving four players, this study employs game theory and constructs an evolutionary game model for collaborative innovation with the participation of military enterprises, civilian enterprises, local governments, and technology intermediaries. The model reveals the evolutionary game patterns among these four entities, analyzes the impact of various parameters on the evolutionary process of the game system, and numerical simulation is used to show these changes more specifically.
Findings
The research findings demonstrate that active government subsidies promote cooperation throughout the system. Moreover, increasing the input-output ratio of research and development (R&D), the rate of technological spillovers, and the R&D investment of civilian enterprises all facilitate the tendency toward cooperation within the system. However, when the government chooses to actively provide subsidies, increasing R&D investment in military enterprises may hinder the tendency toward cooperation. Furthermore, central transfer payments, government punishment from the central government, and an increase in the information conversion rate of technology intermediaries may suppress the rate of cooperation within the system.
Originality/value
Most of the previous studies on the collaborative innovation of military–civilian integration have been tripartite game models between military enterprises, private enterprises, and local governments. In contrast, this study adds science and technology intermediaries on this basis, reveals the evolution mechanism of collaborative innovation of civil-military integration enterprises from the perspective of four-party participation, and analyzes the factors influencing the cooperation of the whole system. The conclusion of this study not only enriches the collaborative innovation evolution mechanism of military–civilian integration enterprises from the perspective of multiple agents but also provides practical guidance for the innovation-driven development of military–civilian integration enterprises.
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Izabela Pruchnicka-Grabias, Iwona Piekunko-Mantiuk and Scott W. Hegerty
The Polish economy has undergone major challenges and changes over the past few decades. The country's trade flows, in particular, have become more firmly tied to the country’s…
Abstract
Purpose
The Polish economy has undergone major challenges and changes over the past few decades. The country's trade flows, in particular, have become more firmly tied to the country’s Western neighbors as they have grown in volume. This study examines Poland's trade balances in ten Standard International Trade Classification (SITC) sectors versus the United States of America, first testing for and isolating structural breaks in each time series. These breaks are then included in a set of the cointegration models to examine their macroeconomic determinants.
Design/methodology/approach
Linear and nonlinear and nonlinear autoregressive distributed lag models, both with and without dummies corresponding to structural breaks, are estimated.
Findings
One key finding is that incorporating these breaks reduces the significance of the real exchange rate in the model, supporting the hypothesis that this variable already incorporates important information. It also results in weaker evidence for cointegration of all variables in certain sectors.
Research limitations/implications
This study looks only at one pair of countries, without any third-country effects.
Originality/value
An important country pair's trade relations is examined; in addition, the real exchange rate is shown to incorporate economic information that results in structural changes in the economy. The paper extends the existing literature by conducting an analysis of Poland's trade balances with the USA, which have not been studied in such a context so far. A strong point is a broad methodology that lets compare the results the authors obtained with different kinds of models, both linear and nonlinear ones, with and without structural breaks.
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Czechia's economic growth is substantially dependent on foreign trade. An independent monetary policy in a managed floating exchange rate regime gives a unique perspective on the…
Abstract
Czechia's economic growth is substantially dependent on foreign trade. An independent monetary policy in a managed floating exchange rate regime gives a unique perspective on the effects of the exchange rate on foreign trade. This chapter evaluates the effects of exchange rate development on different sectors of Czechia's foreign trade. Using disaggregated data based on trading partner and product category, the period from 1999 to 2020 is analyzed. Czechia's 10 major trading partners are included in the estimation. The relationship between exchange rates and foreign trade is assessed through a Johansen cointegration approach and modified vector error correction model. The results of the Johansen cointegration test indicate that the majority of the aggregate bilateral trade balances are in a long-term relationship with Czechia's gross domestic product (GDP), foreign GDP and exchange rate movements. The J-curve is proved only in chemicals and related products traded with France, manufactured goods traded with Italy and Slovakia and mineral fuels and lubricants traded with the Netherlands.
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Robert Mwanyepedza and Syden Mishi
The study aims to estimate the short- and long-run effects of monetary policy on residential property prices in South Africa. Over the past decades, there has been a monetary…
Abstract
Purpose
The study aims to estimate the short- and long-run effects of monetary policy on residential property prices in South Africa. Over the past decades, there has been a monetary policy shift, from targeting money supply and exchange rate to inflation. The shifts have affected residential property market dynamics.
Design/methodology/approach
The Johansen cointegration approach was used to estimate the effects of changes in monetary policy proxies on residential property prices using quarterly data from 1980 to 2022.
Findings
Mortgage finance and economic growth have a significant positive long-run effect on residential property prices. The consumer price index, the inflation targeting framework, interest rates and exchange rates have a significant negative long-run effect on residential property prices. The Granger causality test has depicted that exchange rate significantly influences residential property prices in the short run, and interest rates, inflation targeting framework, gross domestic product, money supply consumer price index and exchange rate can quickly return to equilibrium when they are in disequilibrium.
Originality/value
There are limited arguments whether the inflation targeting monetary policy framework in South Africa has prevented residential property market boom and bust scenarios. The study has found that the implementation of inflation targeting framework has successfully reduced booms in residential property prices in South Africa.
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