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Book part
Publication date: 6 August 2014

Pierre Latrille, Antonia Carzaniga and Marta Soprana

In spite of the extensive literature on the regulation of air transport services, until the development of the Quantitative Air Services Agreements Review (QUASAR…

Abstract

In spite of the extensive literature on the regulation of air transport services, until the development of the Quantitative Air Services Agreements Review (QUASAR) methodology no systematic review existed of the degree of liberalization granted through air services agreements. The chapter lays out QUASARs key features, and presents the main results its application has generated. It then elaborates on how the methodology could be further refined and extended to other segments of the air transport industry yet uncovered. Based on QUASAR, the chapter critically evaluates some commonly held beliefs about the liberalization of international passenger transport and then moves on to explore the technical feasibility of creating a liberal multilateral regime for air transport services. QUASAR has demonstrated that, although the air transport sector has experienced some liberalization over the past few years, this has been, overall, rather marginal. The skies are not truly open.

Details

The Economics of International Airline Transport
Type: Book
ISBN: 978-1-78350-639-2

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Book part
Publication date: 6 August 2014

Xiaowen Fu and Tae Hoon Oum

This chapter reviews the effects of air transport liberalization, and investigates the roles played by airport-airline vertical arrangements in liberalizing markets. Our…

Abstract

This chapter reviews the effects of air transport liberalization, and investigates the roles played by airport-airline vertical arrangements in liberalizing markets. Our investigation concludes that liberalization has led to substantial economic and traffic growth. Such positive outcomes are mainly due to increased competition and efficiency gains in the airline industry, and positive externalities to the overall economy. Liberalization allows airlines to optimize their networks, and thus may introduce substantial demand and financial uncertainty to airports. Vertical arrangements between airlines and airports may offer a wide range of benefits to the parties involved, yet such arrangements could also lead to airline entry barriers which reduce the effects of liberalization. Three approaches have been developed to model the effects of liberalization in complex market conditions, which include the analytical, econometric and computational network methods. These approaches should be selectively utilized in policy studies on liberalization.

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The Economics of International Airline Transport
Type: Book
ISBN: 978-1-78350-639-2

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Book part
Publication date: 26 November 2019

Trupti Upadhyay and Subhankar Parbat

Vietnam is a land that has seen turbulent past and has faced huge damage as being a land for proxy war between the USA and the USSR, but yet it has risen and liberated…

Abstract

Vietnam is a land that has seen turbulent past and has faced huge damage as being a land for proxy war between the USA and the USSR, but yet it has risen and liberated itself out by adapting renovation or Doi-Moi as it is formally called in Vietnam. The purpose of this chapter is to identify the major impact of trade liberalization and trade integration on the Vietnamese economy. Through this chapter we have tried to bring out the changes that took place in the Vietnamese economy post liberalization. The structural change that took place in the Vietnamese economy due to liberalization is analyzed in this chapter. We have used paired sample T-test and Chow Test (F-Test) to observe the change as Vietnam joined the WTO. The effect that the various policy and FTA that Vietnam had after joining the WTO will be analyzed through this chapter.

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The Gains and Pains of Financial Integration and Trade Liberalization
Type: Book
ISBN: 978-1-83867-004-7

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Book part
Publication date: 16 February 2006

Lúcio Vinhas de Souza

Financial and capital liberalization can play a fundamental role in increasing growth and welfare. Typically, emerging or developing economies seek foreign savings to…

Abstract

Financial and capital liberalization can play a fundamental role in increasing growth and welfare. Typically, emerging or developing economies seek foreign savings to solve the inter-temporal savings-investment problem. On the other hand, current account surplus countries seek opportunities to invest their savings. To the extent that capital flows from surplus to deficit countries are well intermediated and put to the most productive use, they increase welfare. Liberalization can, however, also be risky, as has been witnessed in many past and recent financial, currency and banking crises. It can make countries more vulnerable to exogenous shocks. In particular, if serious macroeconomic imbalances exist in a recipient country, and if the financial sector is weak, be it in terms of risk management, prudential regulation and supervision, large capital flows can easily lead to serious financial, banking or currency crises. A number of recent crises, like those in East Asia, Mexico, Russia, Brazil and Turkey (described, for example, in International Monetary Fund (IMF), 2001), and, to some extent, the Argentinean Crisis of late 2001, early 2002, have demonstrated the potential risks associated with financial and capital flows liberalization (Prasad et al., 2003).

Details

Emerging European Financial Markets: Independence and Integration Post-Enlargement
Type: Book
ISBN: 978-0-76231-264-1

Article
Publication date: 22 September 2021

Sena Kimm Gnangnon

This study investigates the effect of multilateral trade liberalization on services export diversification with a view to complementing the recently published work on the…

Abstract

Purpose

This study investigates the effect of multilateral trade liberalization on services export diversification with a view to complementing the recently published work on the effect of multilateral trade liberalization on export product diversification.

Design/methodology/approach

The empirical exercise been performed using a panel dataset of 133 countries over the period 1995–2014.

Findings

The findings show that multilateral trade liberalization is associated with greater services export diversification in both developed and developing countries alike. This is particularly the case in countries with a high reliance on manufactured goods exports or those that enjoy greater export product diversification. Interestingly, multilateral trade liberalization enhances services export diversification in countries that experience higher foreign direct investment inflows.

Research limitations/implications

These findings highlight the importance of multilateral trade liberalization for services export diversification. The study has considered explicitly supply-side factors that could affect services export diversification. This is because the indicator of multilateral trade liberalization is highly correlated with some demand-side factors, such as the world demand for services exports. Therefore, another avenue for future research could involve looking at the demand side factors that could influence services export diversification, and whether the degree of multilateral trade liberalization matters for the influence of these demand factors on services export diversification.

Practical implications

The current study through its positive effect on both export product diversification and services export diversification, greater cooperation among World Trade Organization (WTO) Members on trade matters could help revive economic growth, particularly in the current COVID-19 pandemic that has significantly plummeted it.

Originality/value

To the best of our knowledge, this is first study that has investigated this issue.

Details

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

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Article
Publication date: 15 July 2021

Salendu Salendu

This study aims to examine the effect of trade liberalization on welfare, directly or indirectly, through the productivity of the agricultural sector and the productivity…

Abstract

Purpose

This study aims to examine the effect of trade liberalization on welfare, directly or indirectly, through the productivity of the agricultural sector and the productivity of the industrial sector, which affects economic growth and the welfare of the community.

Design/methodology/approach

This study is explanatory as it looks at causal relationships between one variable with another (causality relationship). The data used in this study are secondary data from various sources, such as the International Financial Statistics (IFS) from the International Monetary Fund (IMF), World Bank, Bank Indonesia reports, Central Bureau of Statistics and several other sources. All data used in this study is annual data for each research variable from 1986 to 2016.

Findings

Based on the results of the analysis, there is a significant direct and negative influence of the agricultural sector productivity on economic growth, a significant direct and negative influence of the industrial sector productivity on economic growth.

Originality/value

Considering the diverse effects of trade liberalization both on economic growth and people's welfare in developing countries, the researcher was interested in knowing how trade liberalization affects Indonesia. This study tries to observe and analyze those relations.

Details

Benchmarking: An International Journal, vol. 28 no. 7
Type: Research Article
ISSN: 1463-5771

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Article
Publication date: 15 January 2021

Ali Fayyaz Munir, Shahrin Saaid Shaharuddin, Mohd Edil Abd Sukor, Mohamed Albaity and Izlin Ismail

This paper investigates the behavior of contrarian strategy payoffs under varying degrees of financial liberalization in the context of Asia-Pacific emerging market namely…

Abstract

Purpose

This paper investigates the behavior of contrarian strategy payoffs under varying degrees of financial liberalization in the context of Asia-Pacific emerging market namely China, India, Indonesia, Korea, Malaysia, Pakistan, Philippines and Thailand for the period 1997–2017. These markets represent economies that display a gradual change in the degree of financial liberalization instead of fully opening their markets to foreign investors at once.

Design/methodology/approach

Using a daily dataset of 2,468 firms and four different measures of the degree of financial liberalization, the paper employs portfolio formation, panel regressions and binary modeling methods to reveal the impact of partial and complete financial liberalization on contrarian returns.

Findings

This paper documents a negative relationship between the degree of financial liberalization and contrarian strategy payoffs. The results further indicate that small-sized emerging markets reveal more significant and higher contrarian returns as compared to their larger counterparts. Moreover, the returns are significantly higher during negative market states, higher volatility and crises periods. The study findings are consistent with the investor-base broadening hypothesis.

Practical implications

The findings may serve as a useful input for investors and fund managers to devise contrarian investment strategies in emerging market economies. Together, the study provides additional insights for policymakers in managing financial liberalization and integration policies within their respective countries.

Originality/value

This study provides a novel viewpoint by examining the relationship between the degree of financial liberalization and contrarian strategy payoffs. The authors contribute to the existing debate by shifting the discussion to the investor-based broadening argument in which small and less liberalized emerging markets offer opportunities for investors and fund managers to produce abnormal contrarian returns that cannot be earned by other conventional investment strategies.

Details

International Journal of Emerging Markets, vol. 17 no. 6
Type: Research Article
ISSN: 1746-8809

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Article
Publication date: 29 March 2021

Bosede Victoria Kudaisi, Titus Ayobami Ojeyinka and Tolulope Temilola Osinubi

International remittances are an important segment of external financial flows in Nigeria, currently superseding official development aid (ODA) in terms of volume, and…

Abstract

Purpose

International remittances are an important segment of external financial flows in Nigeria, currently superseding official development aid (ODA) in terms of volume, and foreign direct investment (FDI) in terms of stability. This study is motivated by the recent increase in remittance flows in Nigeria as the highest recipient in West Africa, and the fact that the growth impact of remittances is weak within the country. The financial liberalization index developed by Chinn and Ito (2006) is employed in this study to examine the role of financial liberalization in the remittances-growth nexus in Nigeria over the period 1990–2018.

Design/methodology/approach

To address the possibility of endogeneity among the variables in the model, the study employs the generalized method of moments (GMM) as a technique of analysis.

Findings

Remittances and financial liberalization are found to have negative significant impacts on economic growth. However, the effect of the interaction term of financial liberalization and remittances on economic growth is positive and significant. This suggests that the two variables act as complements in the enhancement of economic growth in Nigeria. The study thus concludes that financial liberalization is a strong transmission channel through which remittance inflows positively affect economic growth in Nigeria. The study also advocates for a well-developed financial sector in order to attract more growth-enhancing remittances into the country.

Research limitations/implications

The implication of the research findings is that an unrestrained financial sector is necessary to encourage and optimize the benefits of remittance flows on economic growth in Nigeria.

Originality/value

Previous studies have considered the effects of financial development on the remittances-growth nexus in Nigeria. However, this study examines the role of financial liberalization in the nexus between remittances and economic growth in Nigeria by using the Chinn and Ito (2008) index of financial openness.

Details

Journal of Economic and Administrative Sciences, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1026-4116

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Article
Publication date: 12 April 2011

Camara Kwasi Obeng, William Gabriel Brafu‐Insaidoo and Ferdinand Ahiakpor

The purpose of the paper is to investigate the quantitative effect of import liberalization on tariff revenue in Ghana.

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Abstract

Purpose

The purpose of the paper is to investigate the quantitative effect of import liberalization on tariff revenue in Ghana.

Design/methodology/approach

In an attempt to achieve the objective of the paper, a robust decomposition analytical approach was used to examine how different components of the sources of change in import tax contribute to changes in import tax revenue in Ghana.

Findings

The paper concludes that Ghana suffered some revenue loss from the liberalization by reducing the level of average official duty rates, but gained in revenue as a result of real currency depreciation.

Practical implications

It has been suggested that public policy should aim at determining and targeting the optimum level of the average official import duty rates, focus on the identification of the major sources of duty revenue leakage, and substitute sales taxes for tariffs to improve tax revenue sufficiently.

Originality/value

This paper makes explicit the contribution of alternative import policy features to changes in import tax revenue in Ghana.

Details

African Journal of Economic and Management Studies, vol. 2 no. 1
Type: Research Article
ISSN: 2040-0705

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Article
Publication date: 3 October 2016

Sheung Chi Chow, Yongchang Hui, João Paulo Vieito and ZhenZhen Zhu

This paper aims to examine the impact of stock market liberalization on efficiency of the stock markets in Latin America.

Abstract

Purpose

This paper aims to examine the impact of stock market liberalization on efficiency of the stock markets in Latin America.

Design/methodology/approach

Daily stock indices from Latin American countries, including Brazil, Mexico, Chile, Peru, Jamaica and Trinidad and Tobago, are used in the analysis. To examine the impact of stock market liberalization on efficiency, the authors use several approaches, including the runs test, Chow–Denning multiple variation ratio test, Wright variance ratio test, the martingale hypothesis test and the stochastic dominance (SD) test, on the above Latin American stock market indices.

Findings

The authors find that stock market liberalization does not improve stock market efficiency in Latin America.

Originality/value

This investigation is among the first to examine the impact of stock market liberalization on the efficiency of the stock markets. It is among the first to examine the impact of stock market liberalization on the efficiency of the Latin American stock markets. It is also among the first to apply the martingale hypothesis test and a SD approach on issue about efficient market.

Details

Studies in Economics and Finance, vol. 33 no. 4
Type: Research Article
ISSN: 1086-7376

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