THE EFFECT OF THE SEMICONDUCTOR TRADE AGREEMENT ON JAPANESE FIRMS

2005 ◽  
Vol 50 (01) ◽  
pp. 117-129 ◽  
Author(s):  
CRAIG PARSONS
Keyword(s):  
Event Study ◽  
Trade Agreement ◽  
Japanese Firms ◽  
The Us ◽  
The Impact ◽  
Positive Effect ◽  
Daily Returns ◽  
Voluntary Import Expansion

This paper investigates the impact of the 1986 US-Japan Semiconductor Trade Agreement (STA) and antidumping actions by the US on Japanese firms. We conduct an event study employing WLS and OLS estimations on the daily returns of eight large electronics firms over roughly a two year period. We find that the STA had a positive effect on the daily returns while the antidumping rulings were found to be insignificant. These results are consistent with some authors' views that the STA policy may have facilitated collusive behavior to the benefit of not only US, but Japanese firms as well. These results shed some light on the ambiguous results found in the Voluntary Import Expansion (VIE) literature.

scholarly journals Sustainable Tourism, Economic Growth and Employment—The Case of the Wine Routes of Spain

2021 ◽  
Vol 13 (13) ◽  
pp. 7164
Author(s):  
Guillermo Vázquez Vicente ◽  
Victor Martín Barroso ◽  
Francisco José Blanco Jiménez
Keyword(s):  
Economic Growth ◽  
Economic Impact ◽  
Rural Areas ◽  
Local Development ◽  
Tourism Industry ◽  
Wine Tourism ◽  
Development Tool ◽  
The Us ◽  
The Impact ◽  
Positive Effect

Tourism has become a priority in national and regional development policies and is considered a source of economic growth, particularly in rural areas. Nowadays, wine tourism is an important form of tourism and has become a local development tool for rural areas. Regional tourism development studies based on wine tourism have a long history in several countries such as the US and Australia, but are more recent in Europe. Although Spain is a leading country in the tourism industry, with an enormous wine-growing tradition, the literature examining the economic impact of wine tourism in Spanish economy is scarce. In an attempt to fill this gap, the main objective of this paper is to analyze the impact of wine tourism on economic growth and employment in Spain. More specifically, by applying panel data techniques, we study the economic impact of tourism in nine Spanish wine routes in the period from 2008 to 2018. Our results suggest that tourism in these wine routes had a positive effect on economic growth. However, we do not find clear evidence of a positive effect on employment generation.

scholarly journals Quebec’s Economic and Commercial Linkages with the United States, 1994–2017

2017 ◽  
Author(s):  
Earl H. Fry
Keyword(s):  
United States ◽  
Trade Agreement ◽  
The United States ◽  
The North ◽  
Nation States ◽  
Wide Range ◽  
The Us ◽  
Us Government ◽  
Big Picture ◽  
The Impact

This article examines the ebb and flow of the Quebec government’s economic and commercial relations with the United States in the period 1994–2017. The topic demonstrates the impact of three major forces on Quebec’s economic and commercial ties with the US: (1) the North American Free Trade Agreement (NAFTA) which became operational in 1994 and was fully implemented over a 15-year period; (2) the onerous security policies put in place by the US government in the decade following the horrific events of 11 September 2001; and (3) changing economic circumstances in the United States ranging from robust growth to the worst recession since the Great Depression of the 1930s. The article also indicates that the Quebec government continues to sponsor a wide range of activities in the United States, often more elaborate and extensive than comparable activities pursued by many nation-states with representation in the US. 1 1 Stéphane Paquin, ‘Quebec-U.S. Relations: The Big Picture’, American Review of Canadian Studies 46, no. 2 (2016): 149–61.

scholarly journals Using rival effects to identify synergies and improve merger typologies

2011 ◽  
Vol 9 (4) ◽  
pp. 310-335 ◽  
Author(s):  
Joseph A. Clougherty ◽  
Tomaso Duso
Keyword(s):  
Stock Market ◽  
Event Study ◽  
Methodological Approach ◽  
Horizontal Mergers ◽  
European Continent ◽  
Market Data ◽  
Merger Activity ◽  
The Us ◽  
Anglo American ◽  
The Impact

Differentiation of collusive and efficiency-based synergies in horizontal mergers has proven difficult. The authors propose a theory-backed methodological approach to classify mergers that yields greater information on merger types and merger effects. Moreover, the methodological approach distinguishes between mergers characterized largely by collusion-based synergies and those characterized largely by efficiency-based synergies. Crucial to the proposed method is that it considers the impact of merger events not only on merging firms, as is common in the literature, but also on non-merging rivals. The authors demonstrate how the proposed approach clarifies the nature of merger activity through an event-study procedure based on stock market data on samples of large horizontal mergers drawn from the US and UK (an Anglo-American sub-sample) and from the European continent the authors demonstrate how the proposed schematic clarifies the nature of merger activity.

scholarly journals CAN TURKISH AND US CO-OPERATION IN THE BLACK SEA REGION INCREASE EFFICIENCY GAINS?

2017 ◽  
Vol 10 (2) ◽  
pp. 34-49
Author(s):  
Sedat AYBAR
Keyword(s):  
Black Sea ◽  
Fixed Effects ◽  
Trade Agreement ◽  
Ordinary Least Squares ◽  
The Black Sea ◽  
Efficiency Gains ◽  
Black Sea Region ◽  
The Us ◽  
The Impact ◽  
The Eu

This paper examines the impact of co-operation between Turkey and  the US upon Turkish trade and investments towards the Black Sea  region. The study is particularly important in the conjuncture of the  US withdrawal from the Transatlantic Trade and Investment Partnership (TTIP) and in the wake of signing a free  trade agreement with the EU. An additional matter of importance  relates to the improved Turkey – Russia economic collaboration especially after the “jet” incident and American  involvement with the Middle East. Significant part of the latter is  economic as the US has also explicit economic interests in the  Eastern Meditteranean. A gravity model has been employed using  ordinary least squares on a panel data with fixed effects to analyse aggregate trade. We have also categorized export groups of  Turkey and the US separately. Our findings for both Turkish and the US exports indicate that per-capita GDP of Black Sea countries are  highly persistent and positively correlated with increased efficiency  gains and trade volumes. Regression results show that the US  exports to the EU member countries are on average less than to  those non-EU member Black Sea countries. Hence, we question  whether a possible co-operation between the US and Turkish  companies can help gaining better access to the Black Sea market for their exports.

scholarly journals The impact of COVID-19 on the standard & poor 500 index sectors: a multivariate generalized autoregressive conditional heteroscedasticity model

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Maha Elhini ◽  
Rasha Hammam
Keyword(s):  
Significant Relation ◽  
Content Type ◽  
Daily Return ◽  
Technology Sector ◽  
Time Period ◽  
The Us ◽  
Us Dollar ◽  
The Impact ◽  
Autoregressive Conditional Heteroscedasticity ◽  
Daily Returns

Purpose This paper aims to examine the impact of the daily growth rate of COVID-19 cases in the USA (COVIDg), the Federal Fund Rate (FFR) and the trade-weighted US dollar index (USDX) on S&P500 index daily returns and its 11 constituent sectors’ indices for the time period between January 22, 2020, until June 30, 2020. Design/methodology/approach The study uses the multivariate generalized autoregressive conditional heteroscedasticity (MGARCH) model to gauge the impacts over the whole period of study, as well as over two sub-periods; first, January 22, 2020, until March 30, 2020, reflecting uncertainty in the US markets and second, from April 1, 2020, until June 30, 2020, reflecting the lockdown. Findings Results of the MGARCH model reveal a negative and significant relation between COVIDg and S&P500 index daily returns over the first sub-period and the whole study period in the following sectors, namely, communications, consumer discretionary, consumer staples, health, technology and materials. Yet, COVIDg showed a positive and significant relation with S&P500 index daily returns during the second time period in the following sectors, namely, communication, consumer discretionary, financial, industrial, information technology (IT) and utilities. Besides, USDX showed a negative significant effect on S&P500 index daily returns and on the daily return on each of its 11 constituent sectors over the second sub-period and the whole period. Further, FFR showed a significant effect only in the second sub-period, specifically, a negative effect on the daily return of the financial sector and a positive effect on the daily return of the technology sector index. Nevertheless, FFR had a positive significant effect on the daily return of the utilities sector index for the whole period under study. Research limitations/implications The impact of the crisis on the S&P500 index can be assessed only with some limitations owing to available global data and the limited time frame of the lock-down. Practical implications The study proposes supporting a smooth, functioning and resilient financial system; increasing fiscal measures by the US Government to increase liquidity on constraints; measures by The Federal Reserve to alleviate US dollar funding shortages; support market integrity; ensure continuous transparency and sharing of information; support the health sector, as well as consumer-based sectors that faced demand shocks and facilitate investments in the technology sector. Originality/value The originality of this paper lies in the examination of the impact of the novel COVID-19 pandemic on each of the 11 sectors constituting the S&P500 index separately, reflecting how the main economic sectors formulating the US economy reacted to the shock during the peak time of the pandemic to observe a full picture of the economic consequences amid the pandemic.

Spillover effects of the US monetary policy on the Indian trilemma

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Harpreet Singh Grewal ◽  
Pushpa Trivedi
Keyword(s):  
Monetary Policy ◽  
Event Study ◽  
Spillover Effects ◽  
Subject Area ◽  
Open Market ◽  
Content Type ◽  
Study Approach ◽  
The Us ◽  
The Impact ◽  
Us Monetary Policy

PurposeThe purpose of this paper is to investigate the impact of the US unconventional monetary policy surprises on the management of trilemma in India.Design/methodology/approachThis paper uses the event study approach along with OLS and MANOVA to examine the impact.FindingsThe results validate the existence of trilemma in India for the period from October 2008 to December 2017. The results also show that monetary policy independence still exists in India in the wake of greater spillover effects during the Federal Open Market Committee announcement days. The spillover effects on USD-INR exchange rates and capital flows are found to be statistically significant. The MANOVA results show that the trilemma in India is influenced by around 20% by the changes in the US monetary policy.Originality/valueThe above approach of event study combined with MANOVA in this subject area has not been used before to the best of the authors’ knowledge. Further, there are only a few studies that exist on the spillover effects of the US monetary policy actions on the management of trilemma in India.

INFLATION, LIQUIDITY, AND LONG-RUN GROWTH

2016 ◽  
Vol 23 (2) ◽  
pp. 888-906 ◽  
Author(s):  
Ge Zhou
Keyword(s):  
Economic Growth ◽  
Sensitivity Analysis ◽  
Financial Development ◽  
Investment Projects ◽  
Long Run ◽  
The Us ◽  
The Impact ◽  
Positive Effect ◽  
Data Sensitivity ◽  
Effect On Growth

This paper revisits the long-run relationship between inflation and economic growth by exploring the impact of inflation on investment. I illustrate that inflation may have a positive effect on growth by mitigating the liquidity risks of investment projects. Together with the traditional effect of the “inflation tax” on investment, a hump-shaped relationship between inflation and economic growth can be obtained in a calibrated model, which is consistent with the US postwar data. Sensitivity analysis suggests that the degree of financial development and the magnitude of the aggregate liquidity demand help explain the mixed empirical findings.

scholarly journals Simultaneous Analysis of Insurance Participation and Acreage Response from Subsidized Crop Insurance for Cotton

2021 ◽  
Vol 14 (11) ◽  
pp. 562
Author(s):  
Ibrahima Sall ◽  
Russell Tronstad
Keyword(s):  
Crop Insurance ◽  
Rate Of Return ◽  
Risk Exposure ◽  
High Yield ◽  
Marginal Effect ◽  
Combined Effects ◽  
Simultaneous System ◽  
The Us ◽  
The Impact ◽  
Positive Effect

US crop insurance is subsidized to encourage producers to participate and reduce their risk exposure. However, what has been the impact of these subsidies on insurance demand and crop acres planted? Using a simultaneous system of two equations, we quantify both insurance participation and acreage response to subsidized crop insurance for cotton-producing counties across the US at the national and regional levels. We also quantify the impact of both the realized rate of return and the expected subsidy per pound, plus the combined effects of expected yield and price while accounting for the adoption of Bacillus thuringiensis (Bt) technology and other factors. Results show that both the rate of return and the expected subsidy per unit of production have a statistically significant and positive effect on the percentage of arable acres planted. Furthermore, the marginal effect of expected price on insurance participation is much more significant for low- than high-yield counties. Results indicate that not all regions respond the same to subsidized crop insurance and that subsidies should be based on dollars per expected unit of production rather than expected production to be less distorting. Overall, US cotton acreage response is estimated to be inelastic (0.58) to insurance participation.

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