scholarly journals Africa Stock Markets Cross-Market Linkages: A Time-Varying Dynamic Conditional Correlations (DCC-GARCH) Approach

2017 ◽  
Vol 33 (2) ◽  
pp. 321-328 ◽  
Author(s):  
Godfrey Marozva
Keyword(s):  
Stock Returns ◽  
South African ◽  
Sovereign Debt ◽  
Debt Crisis ◽  
The United States ◽  
Future Research ◽  
Time Varying ◽  
African Countries ◽  
Conditional Correlations ◽  
Highly Correlated

This article investigates stock return volatility and contagion among the five African countries (Zimbabwe, South Africa, Egypt, Kenya, and Nigeria) and the United States of America for the period between 1998 and 2015. Engle (2002)’s Dynamic Conditional Correlation multivariate generalized autoregressive conditional heteroscedasticity model was adapted to explore the time-varying conditional correlations to capture the contagion behavior of these financial markets over time.  In this article the researchers observes that South African Stock returns are highly correlated to NYSE stock returns and the coefficients are significant for all periods under consideration.  Additionally, the South African stock returns are significantly negatively related to Zimbabwean stock returns.  An analysis of correlation confirms what most scholars found, that the correlations amongst markets tend to increase during the time of crises and weaken during periods of stability with an exception of Egypt whose results indicate an insignificant negative correlation during the 2007/9 crisis. It is recommended that future research in this area should focus on the potential contagion mechanisms between African countries and European countries especially looking at what transpired during and after the sovereign debt crisis. 

Neoliberalism, Profitability, and the Crisis in the Eurozone

2017 ◽  
Vol 49 (3) ◽  
pp. 410-429 ◽  
Author(s):  
Antônio Albano de Freitas
Keyword(s):  
Sovereign Debt ◽  
Global Economy ◽  
Debt Crisis ◽  
The United States ◽  
Jel Classification ◽  
Institutional Framework ◽  
The Political ◽  
Profit Rate ◽  
Theoretical Contribution ◽  
Highly Correlated

This paper aims to analyze the roots of the sovereign debt crisis around the Eurozone countries. Furthermore, it seeks to deconstruct the orthodox argument which states the crisis is caused by fiscal indiscipline of some of its members. In doing so, the article bears on the political economy tradition, integrating the elements of hierarchy and asymmetry among the various actors, and poses the hypothesis that the crisis in the Eurozone is due to three highly correlated causes: (1) the unfolding of the 2007 crisis that originated in the United States, (2) the financialization of the global economy, and (3) the intra-Eurozone imbalances, a legacy of the neoliberal institutional framework of the last decades. To associate the Euro crisis with this neoliberal architecture, moreover, the main tendencies of contemporary capitalism are described, pointing to the theoretical contribution of Marx, particularly regarding his hypothesis of a tendential fall of the profit rate. Finally, some concluding remarks are considered, stressing alternatives to the budget austerity measures and to the necessary ruptures with this neoliberal institutional framework. JEL Classification: B51; P16; H63; N14

Internet gambling stock returns: empirical evidence from the UK

2017 ◽  
Vol 13 (1) ◽  
pp. 36-49
Author(s):  
Daniel Perez Liston
Keyword(s):  
Stock Returns ◽  
Multivariate Garch ◽  
Online Gambling ◽  
Future Research ◽  
Time Varying ◽  
Conditional Correlation ◽  
Socially Responsible ◽  
Content Type ◽  
Starting Point ◽  
The Uk

Purpose The purpose of this paper is to quantify beta for an online gambling portfolio in the UK and investigates whether it is time-varying. It also examines the dynamic correlations of the online gambling portfolio with both the market and socially responsible portfolios. In addition, this paper documents the effect of important UK gambling legislation on the betas and correlations of the online gambling portfolio. Design/methodology/approach This study uses static and time-varying models (e.g. rolling regressions, multivariate GARCH models) to estimate betas and correlations for a portfolio of UK online gambling stocks. Findings This study finds that beta for the online gambling portfolio is less than 1, indicative of defensiveness toward the market, a result that is consistent with prior literature for sin stocks. In addition, the conditional correlation between the market and online gambling portfolio is small when compared to the correlation of the market and socially responsible portfolios. Findings suggest that the adoption of the Gambling Act 2005 increases the conditional correlation between the market and online gambling portfolio and it also increases the conditional betas for the online gambling portfolio. Research limitations/implications This paper serves as a starting point for future research on online gambling stocks. Going forward, studies can focus on the financial performance or accounting performance of online gambling stocks. Originality/value This empirical investigation provides insight into the risk characteristics of publicly listed online gambling companies in the UK.

Perspectives from Four Stages of Development

2019 ◽  
pp. 159-178
Author(s):  
Eleanor M. Fox ◽  
Mor Bakhoum
Keyword(s):  
South African ◽  
Gold Standard ◽  
Developed Countries ◽  
The United States ◽  
Point Of View ◽  
Sub Saharan Africa ◽  
The European Union ◽  
African Countries ◽  
Sub Saharan ◽  
The Developed Countries

This chapter identifies four clusters of nations based on state of development, in order to highlight significant qualitative differences that may call for different law and policies. The first cluster comprises the least developed sub-Saharan African countries with the most resource-challenged competition authorities, such as Benin and Togo. The second cluster compromises nations that have advanced economically to a perceptibly higher level. The third cluster is a “group” of one—South Africa. With all of its challenges, the South African competition regime is as close to a gold standard as there is in sub-Saharan Africa. Finally, for comparison, the fourth cluster comprises the developed countries, led in particular by the European Union and the United States. These nations have open economies, fairly robust markets, good infrastructure, and good institutions. The chapter proceeds to identify, from the point of view of each of the clusters, the most fitting competition framework nationally and globally. The chapter proposes how the divergences can be brought into sympathy.

Citizens and Mobile Government Adoption

2014 ◽  
Vol 1 (1) ◽  
pp. 13-26 ◽  
Author(s):  
Christopher G. Reddick
Keyword(s):  
Cell Phone ◽  
Weather Forecast ◽  
The United States ◽  
Social Networking Site ◽  
Electronic Government ◽  
Future Research ◽  
Mobile Phone Use ◽  
Research Questions ◽  
Highly Correlated ◽  
Tremendous Impact

In electronic government or e-government research there is an increased importance being placed on the investigation of new and emerging technologies. Mobile government is one area that has received very little research, but can have a tremendous impact on the way that citizens engage with their government. This paper asks two research questions. First, what are the important factors that predict mobile government adoption by citizens? Second, are there any important distinctions between mobile government compared to other common cell phone activities? The data used to answer these questions is taken from a survey of cell phone users across the United States. The results indicated that mobile government adoption was best predicted by mobile phone use and social factors. Demographic factors, associated with the digital divide, were not found to be highly correlated with mobile government adoption. In addition, mobile government adoption is different from other online cell phone activities, such as going to a social networking site or getting a weather forecast online. The results of this paper imply that future research should study more closely the adoption of mobile government activities.

scholarly journals Forty Years of Leverage: What Have We Learned About Sovereign Debt?

2014 ◽  
Vol 104 (5) ◽  
pp. 266-271
Author(s):  
Peter Boone ◽  
Simon Johnson
Keyword(s):  
United States ◽  
Financial Crises ◽  
Sovereign Debt ◽  
Best Practice ◽  
Debt Crisis ◽  
The United States ◽  
Banking Crises ◽  
Sovereign Debt Crisis ◽  
Negative Effects ◽  
Regulatory Constraints

Financial crises frequently increase public sector borrowing and threaten some form of sovereign debt crisis. Until recently, high income countries were thought to have become less vulnerable to severe banking crises that have lasting negative effects on growth. Since 2007, crises and attempted reforms in the United States and Europe indicate that advanced countries remain acutely vulnerable. Best practice from developing country experience suggests that regulatory constraints on the financial sector should be strengthened, but this is hard to do in countries where finance has a great deal of political power and cultural prestige, and where leverage is already high.

scholarly journals Where Credit is due: on the Puerto Rican Debt Crisis

2017 ◽  
Vol 9 (1) ◽  
pp. 6-16
Author(s):  
Eric Joshi ◽  
Amogh Joshi
Keyword(s):  
Puerto Rico ◽  
Puerto Rican ◽  
Sovereign Debt ◽  
Debt Crisis ◽  
The United States ◽  
Negotiation Process ◽  
Unique Contribution ◽  
Debt Restructuring ◽  
Macroeconomic Indicators ◽  
Restructuring Process

This paper provides a comprehensive breakdown of the ongoing economic crisis in the Commonwealth of Puerto Rico. It explores the backdrop of the crisis by analyzing Puerto Rico’s relationship with the U.S., macroeconomic indicators and pertinent legislations. It’s entirely unique contribution is the analysis of the newly introduced act- PROMESA, which enables Puerto Rico to restructure its debt. We have provided an explanation of the important sections of this legislation which govern the debt negotiation process. The PROMESA act has been extended to apply to other unincorporated territories of the United States as well should they run into arrears, which broadens the scope of this paper. We have extended the findings of pre-existing body of work on sovereign debt restructuring hurdles and explained how PROMESA addresses them. We have also used previous works to suggest measures to expedite Puerto Rico’s debt restructuring process with creditors. This paper could also serve as a handbook for creditors looking to navigate through the post-PROMESA debt restructuring process.

scholarly journals The Evolving Efficiency Of The South African Stock Exchange

2012 ◽  
Vol 11 (9) ◽  
pp. 997 ◽  
Author(s):  
Lumengo Bonga-Bonga
Keyword(s):  
Stock Returns ◽  
South African ◽  
Stock Exchange ◽  
Weak Form ◽  
Time Varying ◽  
The South ◽  
Forecast Performance ◽  
Nested Models ◽  
Out Of Sample ◽  
Weak Form Efficiency

This paper tests the weak-form efficiency in the South African stock exchange - the Johannesburg Securities Exchange (JSE) - under the hypothesis that emerging markets efficiency evolves through time as these markets constantly enhance their regulatory environment. The paper makes use of the time varying GARCH model in testing this hypothesis. In addition, the paper compares the out-of-sample forecast performance of the time varying and fixed parameter GARCH models in predicting stock returns in the JSE making use of MSE-F statistics for nested models proposed (McCracken, 1999). The findings of the paper show that the two models provide the same conclusion in showing that the JSE has been efficient during the period of the analysis. In addition, the time varying model outperforms the fixed coefficient model in predicting the JSE stock returns. This finding indicates that the time-varying parameter model adds a benefit in testing the weak-form efficiency or modelling stock return in the JSE.

scholarly journals “Saving the Euro: A Test for Globalisation” (The Allama Iqbal Lecture)

2012 ◽  
Vol 51 (4I) ◽  
pp. 27-36
Author(s):  
Yannos Papantoniou
Keyword(s):  
Current Account ◽  
Sovereign Debt ◽  
Industrial Revolution ◽  
Debt Crisis ◽  
The United States ◽  
Modern World ◽  
Real Economy ◽  
Poor Countries ◽  
Large Current ◽  
Dramatic Rise

The sovereign debt crisis originating in the eurozone immediately after the eruption of the global financial crash represents a significant challenge not only for the European but also for the world economy. Overcoming it will contribute to creating the conditions for sustained global economic recovery and also provide a testing ground for our capabilities to control the dangers surrounding the globalisation process which is unfolding over the recent decades. The integration of markets in products and finance, and less so in services, coupled with enormous technological progress in communications and transport diffused growth to regions and continents that, during the last centuries, had been left behind the dramatic rise in living standards witnessed in Europe, North America and Japan since the Industrial Revolution. The opening up of markets led to more efficient use of global resources allowing productivity to grow while billions of people transgressed poverty lines and joined the modern world. The downside of this process is that national control over economic policy has been significantly diminished, even vanished for small economies, while intricate problems emerged for international economic governance. These problems were brought to the fore during the recent crisis at the global and eurozone level. As markets integrate and systems converge, controlling imbalances in either the real economy or the financial sector becomes increasingly difficult since it requires much more advanced policy cooperation than allowed for in institutional set-ups corresponding to nation-centred economic models. The extent of the changes that are needed will become clearer as we review the origins of the present crisis. At the global level the huge current account imbalances that have been built up over the last decades produced an unusual pattern of savings flows. Poor countries, chiefly China, have been financing rich ones, such as the United States. This pattern reflects the fact that emerging countries have had large current account surpluses, whereas developed economies have accumulated sizeable deficits. The imbalances led capital to flow ‘the wrong way’ from the developing to the advanced economies, destabilising the financial system and thus creating the conditions for the economic crisis.

The Politics of Europeanization

2020 ◽  
pp. 69-85
Author(s):  
Kevin Featherstone ◽  
Dimitris Papadimitriou
Keyword(s):  
Political Development ◽  
Sovereign Debt ◽  
Debt Crisis ◽  
Future Research ◽  
The European Union ◽  
Eu Legislation ◽  
Current State ◽  
European Dimension ◽  
History Of ◽  
Domestic Reform

‘Europe’, ‘Europeans’, and ‘Europeanness’ have been crucial themes in the history of modern Greece, from the creation of the new state in 1832 to the sovereign debt crisis of 2010. As elsewhere, these notions have served as référentiels in questions of national identity, progress, capability, legitimation and strategic interest. In the Greek case, the European dimension to these questions has been felt acutely. This chapter considers Greece’s political development in the context of its membership of the European Union, assessing the extent to which the latter has prompted domestic reform. A general theme that emerges from the scholarly literature in this area is of Greece’s uneven adaptation across different sectors, a feature that provokes interesting research contrasts, but also challenges of interpretation. To understand how EU pressures for adaptation have been received domestically, the chapter opens with a discussion of the changing images and meanings of ‘Europe’ in Greece. This is followed by an assessment of the range and significance of the domestic adaptation of policies and regulations to EU legislation, as established by existing academic studies and policy papers. We note the current state of knowledge of Europeanization impacts on Greece, the implications of the findings, and pointers for future research. The unevenness of adaptation is an essential lens for analysis.

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