Speed of Price Adjustment towards Market Efficiency: Evidence from Emerging Countries

2018 ◽  
Vol 17 (1_suppl) ◽  
pp. S112-S135 ◽  
Author(s):  
Parthajit Kayal ◽  
S. Maheswaran
Keyword(s):  
Emerging Economies ◽  
Developed Countries ◽  
Emerging Countries ◽  
Model Specification ◽  
Price Adjustment ◽  
Standard Errors ◽  
Bootstrap Procedure ◽  
Price Adjustments ◽  
Stock Indices ◽  
Empirical Framework

The speed with which stock markets adjust to information and news flow into asset prices is of importance to investors, regulators and policymakers. In this article, we provide a simple and uniform empirical framework involving the use of a volatility measure to compare the speeds of adjustment in index prices in response to all available market information. The stock indices of 23 major emerging economies are compared with 10 mature stock indices from developed countries with reference to the speed of their price adjustments. We find that the index prices of developed countries adjust faster when compared to those of emerging countries. Our findings are independent of any GARCH specification and are also robust to potential mistakes in the model specification because we make use of a fully empirical bootstrap procedure to compute the standard errors. We also rank the countries in terms of the speed of index price adjustment. The results show that the random walk effect is generic and exists in all price indices.

scholarly journals The Impact of OFDI and Institutional Quality on Domestic Capital Formation at the Disaggregated Level: Evidence for Developed and Emerging Countries

2020 ◽  
Vol 12 (9) ◽  
pp. 3661
Author(s):  
Waqar Ameer ◽  
Kazi Sohag ◽  
Helian Xu ◽  
Musaad Mansoor Halwan
Keyword(s):  
Emerging Economies ◽  
Institutional Quality ◽  
Private Investment ◽  
Public Capital ◽  
Developed Countries ◽  
Capital Formation ◽  
Emerging Countries ◽  
Private Capital ◽  
Domestic Capital ◽  
Private And Public

In this study, we investigate whether outbound foreign direct investment (OFDI) either augments or impedes domestic public and private investment, incorporating the role of institutional quality into the context of developed and emerging countries. To this end, we apply a cross-sectional-autoregressive-distributed lag (CS-ARDL) approach to analyze panel data from the period 1996–2017. Our empirical findings suggest that OFDI augments private capital formation for developed countries. Institutional quality (IQ) is found to be a driving factor that promotes private capital formation in the established economies of developed countries. However, OFDI has a negative association with the public capital formation in the established economies of developed countries, while IQ has a positive association with it. In the context of emerging economies, OFDI is found to be too insignificant to have an effect on private and public capital formation. Interestingly, IQ has a detrimental effect on both private and public capital formation in emerging economies. Our findings are robust. The empirical findings of this study imply that institutional quality should continue to be improved in developed countries, while it should surpass a certain threshold for emerging economies to promote domestic capital formation.

Family Business in Emerging Markets

2018 ◽  
pp. 526-546 ◽  
Author(s):  
Rodrigo Basco
Keyword(s):  
Conceptual Model ◽  
Family Business ◽  
Emerging Economies ◽  
Family Firms ◽  
Developed Countries ◽  
Emerging Countries ◽  
Three Dimensions ◽  
The Family ◽  
Contextual Family ◽  
Social Importance

The phenomenon of the family firm has received considerable attention in academia over the last two decades. Even though the family business field is becoming increasingly more legitimate, the vast majority of family business research has focused on developed countries, with emerging countries being largely underrepresented. This limitation ultimately restricts our understanding of family firms. Thus, to address this gap, this chapter proposes a conceptual model linking three dimensions: family, business, and context. The model considers the specificities of organizational, institutional, social, temporal, and spatial forces across contexts for studying family and business dimensions in emerging countries. The aim of this conceptual model is to capture the complexity of the connectivity among contextual, family, and business dimensions. Exploring, understanding, and predicting these connectivities is particularly relevant in emerging economies because of the economic and social importance of family firms. Therefore, this chapter contributes to our understanding of the family business phenomenon by presenting a brief literature review on what we know about the topic so far, proposing a conceptual model that presents the relevant dimensions for researching family businesses in emerging economies, and highlighting future lines of research to further expand the family business field.

scholarly journals The convergences between post Keynesian and developmental approaches: the post Keynesianism applied to emerging countries

2020 ◽  
Vol 40 (1) ◽  
pp. 37-52
Author(s):  
JOÃO VICENTE NOVAES CAMARGO MANNA
Keyword(s):  
Emerging Economies ◽  
Developed Countries ◽  
Emerging Countries ◽  
Economic Policies ◽  
Keynesian Theory ◽  
Developmental Policies

ABSTRACT Post Keynesian theory is often seen in a somewhat standardized way, possessing a series of attributes common to all its strands. However, it is possible to think that post Keynesianism does not keep the same form when dealing with developed countries and emerging countries. If this theory adapts to the treatment of emerging economies, it is possible that this theory gains similar outlines to the economic policies specifically discussed for the analysis of the context of underdevelopment, that is, developmental policies.

scholarly journals A Gap in Brain Gain for Emerging Countries: Evidence of International Immigration on Non-Resident Patents

2020 ◽  
Vol 14 (1) ◽  
pp. 7
Author(s):  
Bolortuya Enkhtaivan ◽  
Jorge Brusa ◽  
Zagdbazar Davaadorj
Keyword(s):  
Developed Countries ◽  
Emerging Countries ◽  
Culture Learning ◽  
Host Countries ◽  
Creative People ◽  
Brain Gain ◽  
Ample Evidence ◽  
The World ◽  
Controversial Topic ◽  
Global Data

Immigration is a controversial topic that draws much debate. From a human sustainability perspective, immigration is disadvantageous for home countries causing brain drains. Ample evidence suggests the developed host countries benefit from immigration in terms of diversification, culture, learning, and brain gains, yet less is understood for emerging countries. The purpose of this paper is to examine the presence of brain gains due to immigration for emerging countries, and explore any gaps as compared to developed countries. Using global data from 88 host and 109 home countries over the period from 1995 to 2015, we find significant brain gains due to immigration for emerging countries. However, our results show that there is still a significant brain gain gap between emerging and developed countries. A brain gain to the developed host countries is about 5.5 times greater than that of the emerging countries. The results hold after addressing endogeneity, self-selection, and large sample biases. Furthermore, brain gain is heterogenous by immigrant types. Skilled or creative immigrants tend to benefit the host countries about three times greater than the other immigrants. In addition, the Top 10 destination countries seem to attract the most creative people, thus harvest the most out of the talented immigrants. In contrast, we find countries of origin other than the Top 10 seem to send these creative people to the rest of the world.

scholarly journals Commodity price pass-through along the pricing chain

2021 ◽  
Author(s):  
Rebeca Jiménez-Rodríguez ◽  
Amalia Morales-Zumaquero
Keyword(s):  
Emerging Economies ◽  
Raw Materials ◽  
Commodity Prices ◽  
Commodity Price ◽  
Emerging Countries ◽  
Consumer Prices ◽  
Advanced Economies ◽  
The World ◽  
Producer Prices ◽  
Pass Through

AbstractThis paper analyses the commodity price pass-through along the pricing chain for the global commodity price index and the indices of its main categories (i.e., agricultural raw materials, food and beverages, energy and metals) in the world, advanced and emerging economies. To do so, the study considers country-by-country vector autoregression models and pool the results by taking weighted means for 18 advanced economies and 19 emerging countries, as well as for the world (defined as the sum of advanced and emerging economies). The results show the following: (i) there is evidence in favour of partial pass-through from commodity prices to producer prices, although the evidence for the pass-through to consumer prices is less evident; (ii) the pass-through in the world seems to be led by both advanced and emerging countries for producer prices and only by advanced economies for consumer prices; (iii) higher prices in the four categories (agricultural raw materials only in the short-run) induce significant higher producer prices in almost all cases, with shocks in the prices of energy and metals showing the largest effects; and (iv) energy prices explain the highest variability of producer and consumer prices.

scholarly journals A room with a view: a special issue with a special perspective

2021 ◽  
Vol 26 (3) ◽  
pp. 205-210
Author(s):  
Simone Borghesi
Keyword(s):  
Climate Change ◽  
Developing Countries ◽  
Climate Policy ◽  
Present Article ◽  
Emerging Economies ◽  
Emissions Trading ◽  
Developed Countries ◽  
Special Issue ◽  
Climate Policies

AbstractThe present article describes the main insights deriving from the papers collected in this special issue which jointly provide a ‘room with a view’ on some of the most relevant issues in climate policy such as: the role of uncertainty, the distributional implications of climate change, the drivers and applications of decarbonizing innovation, the role of emissions trading and its interactions with companion policies. While looking at different issues and from different angles, all papers share a similar attention to policy aspects and implications, especially in developing countries. This is particularly important to evaluate whether and to what extent the climate policies adopted thus far in developed countries can be replicated in emerging economies.

scholarly journals Innovation on Wheels in Emerging Economies: Lessons from Auto MNC’s Experience

2016 ◽  
Vol 11 (8) ◽  
pp. 44 ◽  
Author(s):  
Rifat Sharmelly
Keyword(s):  
Emerging Economies ◽  
Product Innovation ◽  
Developed Countries ◽  
Multinational Companies ◽  
Value For Money ◽  
Mass Market ◽  
Innovative Performance ◽  
The Creation ◽  
Acceptability Criteria

Emerging economies (EEs) are increasingly being considered as new sources of growth and innovation opportunities for global auto multinational companies. Many multinational companies from developed countries are eager to prosper in these economies. However, the crucial challenge that companies face today is to identify what precisely are the approaches required to serve mass market customers in EEs. In this research, the case study of a foreign auto multinational operating in India has been utilized. Focusing on the product innovation for the Indian masses with the creation of the most affordable car ‘Figo’ from the reputed auto multinational Ford, this analysis reveal the importance of engaging same set of suppliers in trust based, recurrent collaborative linkages to enhance the innovative performance. In addition, ensuring an effective value-for-money proposition is needed to achieve innovations with required affordability and acceptability criteria. Furthermore, experimenting with modules and resultant learning about markets are needed to enhance the innovative performance. With the suggested testable propositions, this study has significant theoretical contributions as well as implications for managers of aspiring companies intending to serve EEs.

scholarly journals Does the Export-Led Growth Hypothesis Hold for Services Exports in Emerging Economies?

2021 ◽  
Vol 14 (27) ◽  
pp. 63-75
Author(s):  
Okpeku Lilian ONOSE ◽  
◽  
Osman Nuri ARAS ◽  
Keyword(s):  
Economic Growth ◽  
Emerging Economies ◽  
Emerging Countries ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
Per Capita ◽  
Positive Effect ◽  
Growth Hypothesis

The export-led growth hypothesis states a positive relationship between the growth of exports and long-run economic growth. This study examines the validity of the export-led growth hypothesis of services exports in 5 emerging economies, including Brazil, India, Nigeria, China, and South Africa (BINCS), for the period of 1980-2019. The study employs the panel mean group autoregressive distributed lag (ARDL) procedure to identify a causal relationship between services exports and gross domestic product (GDP) per capita. The findings show that the export-led growth hypothesis in services only has a positive effect on economic growth in the short run while other variables, including foreign direct investment (FDI), gross capital formation, and labour, increase economic growth in the long run. Hence, the emerging countries should focus more on internal investment to boost growth in the long and short run.

scholarly journals Modern Services Exports from Emerging Countries—Perspectives and Opportunities

2012 ◽  
Vol 51 (4II) ◽  
pp. 209-226
Author(s):  
Shahbaz Nasir
Keyword(s):  
Developing Countries ◽  
Comparative Advantage ◽  
Empirical Work ◽  
Developed Countries ◽  
Emerging Countries ◽  
Export Growth ◽  
Technological Developments ◽  
Emerging And Developing Countries ◽  
Technological Improvements ◽  
Modern Services

Traditionally, developed countries are the major exporters of services; however, technological developments in IT and communications over the last two decades have made it possible for developing countries to exploit their comparative advantage in some modern services. The driving force for this comparative advantage is the large pool of semi-skilled and skilled graduates in emerging countries who can deliver their services across borders, using advanced communication technologies. Why do emerging countries have increasing modern services exports? How are these exports explained by theory? What are the factors behind this export growth and the reasons to expect future growth? These are some of the important questions that researchers and policy-makers would like to find answers to and an attempt has been made to answer these questions in this paper. Identification of the sources of services export growth from emerging and developing countries can be attempted through established theories of goods trade and production. This paper reviews selected theory and empirical work in order to explain the underlying causes for growing exports of services. Causes for the export of modern services may include a comparative advantage of the exporting country, cost reduction for the importing firm through outsourcing, reduction in trading costs due to technological improvements and an increase in gains from services trade.

Controlling Shareholders: Issues and Challenges for Shareholders’ Empowerment in Directors’ Remuneration in Corporate Malaysia

2014 ◽  
Vol 9 (1) ◽  
Author(s):  
Shanthy Rachagan ◽  
Aiman Nariman Mohd Sulaiman
Keyword(s):  
Emerging Economies ◽  
Ownership Structure ◽  
Self Regulation ◽  
Developed Countries ◽  
Interesting Case ◽  
Minority Shareholders ◽  
Controlling Shareholders ◽  
Legal Rules ◽  
Current Reform

AbstractCurrent reform concerning directors’ remuneration relies on improving legal rules and self-regulation to minimise expropriation of minority shareholders. These have prominently focussed on empowering shareholders. Nonetheless, it is unclear as to the extent these reform proposals are compatible within the concentrated shareholding structure. Some of the reforms taking place in developed countries are suited for dispersed shareholding structure and thus transplanting them to emerging economies with concentrated shareholders may be ineffective. Malaysia poses an interesting case study, especially to countries with similar ownership structure as the concentrated shareholding structure raises different agency problems. The issue of protection of minority shareholder rights and the prevention of abuse of the controlling power by paying excessive remuneration to the executives is therefore a subject of due consideration in Malaysia and countries with similar shareholding structures. This article recommends that Malaysia and other emerging countries look into encouraging limited shareholder empowerment in tandem with laws.

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