scholarly journals Banking Sector Competition in the Panzar-Rosse Framework and Net Interest Margins: An Empirical Analysis Using the General Method of Moments

2018 ◽  
Vol 20 (1) ◽  
pp. 5-36
Author(s):  
Arben Mustafa ◽  
Valentin Toçi
Keyword(s):  
Empirical Analysis ◽  
Method Of Moments ◽  
Banking Sector ◽  
Interest Margins ◽  
General Method Of Moments ◽  
General Method

scholarly journals An Empirical Analysis of Factors Affecting Bank Interest Margins: Evidence from the South East European Countries

2018 ◽  
Vol 21 (2) ◽  
pp. 81-98
Author(s):  
Mehmed Ganić
Keyword(s):  
Interest Rate ◽  
Empirical Analysis ◽  
Banking Sector ◽  
Output Growth ◽  
The South ◽  
Factors Affecting ◽  
East European ◽  
Interest Margins ◽  
See Region ◽  
Bank Concentration

This paper provides an empirical analysis of factors affecting Bank Interest Margins in eight countries of the South‑East European (SEE) region between 2000 and 2014. The purpose of this paper is to examine and investigate the main drivers of Bank Interest Rate Margins across selected countries throughout the SEE region. Also, the study explored the relationship between the dependent variable Interest Rate Spread (IRS – as a proxy variable for measuring variation in Bank Interest Rate Margins) and a set of selected banks’ specific variables in SEE by employing panel data estimation methodology. This research is based on aggregate data for the whole banking sector of each country. In line with some expectations, our findings confirm the importance of credit risk, bank concentration operative efficiency, and inflation expectations in determining Bank Interest Rate Margins. Interestingly, in contrast to the majority of recent empirical research, the study found an inverse relationship between the bank concentration variable and Bank Interest Rate Margins as well as between the operational efficiency variable and Bank Interest Rate Margins. Also, the study could not find statistically significant evidence that Bank Interest Rate Margins are determined by output growth, bank profitability (measured by ROA) or liquidity risk.

scholarly journals Rational Expectations Estimation of Georgia Soybean Acreage Response

1995 ◽  
Vol 27 (2) ◽  
pp. 500-509 ◽  
Author(s):  
Nicolas B. C. Ahouissoussi ◽  
Christopher S. McIntosh ◽  
Michael E. Wetzstein
Keyword(s):  
Response Function ◽  
Method Of Moments ◽  
Rational Expectations ◽  
Futures Prices ◽  
Crop Acreage ◽  
Government Programs ◽  
Demand Shocks ◽  
General Method Of Moments ◽  
General Method ◽  
Significant Factors

AbstractThe general method of moments procedure is used for estimating a soybean acreage response function assuming that producers hold rational expectations. Results indicate that soybean, corn, and wheat futures prices, lagged acreage, and government programs are significant factors for determining soybean plantings. Implications of the results are that crop acreage selection by Georgia producers is not very responsive to demand shocks. Thus, producers in other regions are more likely to absorb impacts from these shocks on crop acreage selection.

scholarly journals TRADE OPENNESS AND ECONOMIC GROWTH: A CAUSALITY TEST IN PANEL PERSPECTIVE

2017 ◽  
Vol 17 (2) ◽  
Author(s):  
Jamilah Idris ◽  
Zulkornain Yusop ◽  
Muzafar Shah Habibullah
Keyword(s):  
Economic Growth ◽  
Causal Relationship ◽  
Method Of Moments ◽  
Purchasing Power Parity ◽  
Trade Openness ◽  
Estimation Method ◽  
Dynamic Panel Data ◽  
Dynamic Panel ◽  
General Method Of Moments ◽  
General Method

Openness to trade has been one of the primary drivers stimulating growth. The goal of this particular study is to investigate the relationship between trade openness and economic growth in 87 selected countries which includes both Organizations for Economic Co-operation and Development (OECD) and developing countries for 1977–2011 periods. We used two measures of trade openness i.e. the ratio of trade openness (TO) typically spoke by exports plus imports in nominal value divided by GDP (nominal) which is commonly used in the literature, and trade openness in real (RO) which is defined as the sum of imports and exports in US$ relative to GDP in purchasing power parity US$ (real GDP). An empirical studywas conducted to determine the causal relationship between trade openness and growth in a panelperspective. We used a dynamic panel data estimation method i.e. the general method of moments (GMM). The empirical results reveal a bidirectional causal relationship for both developing and OECD countries. Our finding is consistent with the endogenous theory that increased openness leads to higher growth, which thus prompts expanded openness.Keywords: Openness; Economic Growth; Dynamic Panel General Method of Moments (GMM).

scholarly journals Does Concentration Matter for Bank Stability? Evidence from the Albanian Banking Sector

2017 ◽  
Vol 6 (3) ◽  
pp. 67-94 ◽  
Author(s):  
Gerti Shijaku
Keyword(s):  
Banking Sector ◽  
Balance Sheet ◽  
Bank Stability ◽  
New Approach ◽  
First Results ◽  
General Method Of Moments ◽  
Internal And External Factors ◽  
The Impact ◽  
Bank Concentration ◽  
General Method

AbstractMotivated by the debate on the concentration-stability nexus, this paper studies the impact of bank concentration on the likelihood of a country suffering systemic bank fragility. For this reason, we followed a new approach using on-site bank balance sheet information to construct our proxy that represents each bank stability condition and uses a variety of internal and external factors to estimate a balance panel dynamic two-step General Method of Moments (GMM) approach for the period 2008 - 2015. First, results provide supportive evidence consistent with the concentration-fragility view. Second, macroeconomic variables seem to have a significant effect on bank stability, which is not found for the sovereignty primary risk. By contrast, the bank-specific variables have also a significant effect on bank stability conditions. Finally, non-systemic banks are found to be more sensitive to macroeconomic condition and market concentration, while the better capitalised banks are less sensitive to fragility at the expense of lower operation efficiency.

High-Income Developing Countries, FDI Outflows and the International Investment Agreement Regime

2021 ◽  
pp. 1-17
Author(s):  
Yoram Z. Haftel ◽  
Soo Yeon Kim ◽  
Lotem Bassan-Nygate
Keyword(s):  
Developing Countries ◽  
Method Of Moments ◽  
Dispute Settlement ◽  
Original Data ◽  
International Investment ◽  
High Income ◽  
Data Set ◽  
Investment Agreement ◽  
General Method Of Moments ◽  
General Method

Abstract The international investment agreement regime (IIA Regime) is composed of thousands of IIAs and a system of investor–state dispute settlement. Historically, high-income developing countries (HIDCs) were part of the global South and thus ‘hosts’ of foreign direct investment (FDI). Increasingly, however, these countries have become ‘home’ to investors who are hosted and exposed to political risk abroad. Representing both home and host country interests simultaneously, how do HIDCs balance these crosscutting pressures? We argue that as the position of an HIDC shifts from mostly a recipient towards a sender of significant amounts of FDI, it will be more willing to provide protection to foreign investors at the expense of state regulatory space in its IIAs, thereby increasing its exposure to the IIA Regime. Employing an original data set that measures this exposure for sixty-four HIDCs over six decades, we first show that the degree of HIDC exposure to the IIA Regime varies a great deal. Using a general method of moments (GMM) analysis and controlling for a host of confounding factors, we demonstrate that, indeed, higher levels of FDI outflows as a share of the national economy result in greater exposure to the IIA Regime.

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