scholarly journals Economic and financial integration in emerging markets: A European policy

2005 ◽  
Vol 50 (164) ◽  
pp. 81-102
Author(s):  
Theodore Theodoropoulos ◽  
Borut Vojinovic
Keyword(s):  
Emerging Markets ◽  
Financial Integration ◽  
Institutional Framework ◽  
European Policy ◽  
Eu Accession ◽  
Long Run ◽  
Short Run ◽  
Mature Market ◽  
The Eu ◽  
Cyclical Volatility

This paper extends to test if the same short-run increase in cyclical volatility arising from financial integration is observed in this specific sample of "emerging markets". This work finds signs that, contrary to other emerging markets, this does not happen: for the future member states financial integration, similarly to the outcome observed in mature market economies, reduces cyclical volatility both in the short and in the long run. Weak indications are found that this may happen partially due to the anchoring of expectations provided by the EU Accession, and to the more robust institutional framework imposed by this process onto the countries in question.

scholarly journals Analysis of the New Kuznets Relationship: Considering Emissions of Carbon, Methanol, and Nitrous Oxide Greenhouse Gases—Evidence from EU Countries

2021 ◽  
Vol 18 (6) ◽  
pp. 2907
Author(s):  
Mara Madaleno ◽  
Victor Moutinho
Keyword(s):  
Nitrous Oxide ◽  
Least Squares ◽  
Fixed Effects ◽  
Ghg Emissions ◽  
Ordinary Least Squares ◽  
Kuznets Curve ◽  
Ekc Hypothesis ◽  
Long Run ◽  
Short Run ◽  
The Eu

Decreased greenhouse gas emissions (GHG) are urgently needed in view of global health threat represented by climate change. The goal of this paper is to test the validity of the Environmental Kuznets Curve (EKC) hypothesis, considering less common measures of environmental burden. For that, four different estimations are done, one considering total GHG emissions, and three more taking into account, individually, the three main GHG gases—carbon dioxide (CO2), nitrous oxide (N2O), and methane gas (CH4)—considering the oldest and most recent economies adhering to the EU27 (the EU 15 (Old Europe) and the EU 12 (New Europe)) separately. Using panel dynamic fixed effects (DFE), dynamic ordinary least squares (DOLS), and fully modified ordinary least squares (FMOLS) techniques, we validate the existence of a U-shaped relationship for all emission proxies considered, and groups of countries in the short-run. Some evidence of this effect also exists in the long-run. However, we were only able to validate the EKC hypothesis for the short-run in EU 12 under DOLS and the short and long-run using FMOLS. Confirmed is the fact that results are sensitive to models and measures adopted. Externalization of problems globally takes a longer period for national policies to correct, turning global measures harder and local environmental proxies more suitable to deeply explore the EKC hypothesis.

scholarly journals ON THE EFFECTIVENESS OF FISCAL DEVALUATIONS IN A MONETARY UNION

2018 ◽  
Vol 23 (8) ◽  
pp. 3424-3456 ◽  
Author(s):  
Anna Lipińska ◽  
Leopold von Thadden
Keyword(s):  
Monetary Policy ◽  
Monetary Union ◽  
Financial Integration ◽  
Fiscal Policies ◽  
Consumption Tax ◽  
Welfare Costs ◽  
Long Run ◽  
Price Rigidities ◽  
Short Run ◽  
Labor Taxes

This paper examines the effects of fiscal devaluations in a model of a monetary union characterized by national fiscal policies and supranational monetary policy. We show that a revenue-neutral permanent tax shift in one country, which raises its consumption tax to finance a cut to labor taxes, increases welfare of the monetary union in the long run. The distribution of gains among countries depends on their degree of financial integration. We also document that price rigidities result in short-run welfare costs.

scholarly journals AN ANALYSIS OF STOCK MARKET INTEGRATION IN THE ASIAN DEVELOPED AND EMERGING MARKETS

2021 ◽  
Vol 9 (3) ◽  
pp. 1175-1190
Author(s):  
Sadiq Rehman ◽  
Asif Ali Abro ◽  
Ahmed Raza Ul Mustafa ◽  
Najeeb Ullah ◽  
Sanam Wagma Khattak
Keyword(s):  
Stock Market ◽  
Emerging Markets ◽  
Stock Markets ◽  
Impulse Response Function ◽  
Variance Decomposition ◽  
Short Term ◽  
Emerging Stock Markets ◽  
Long Run ◽  
Integration Test ◽  
Short Run

Purpose of the study: This study investigates Short-run, Long-run, and Casual relationships in the Asian Developed and Emerging stock market indices for the period of 19 years weekly data of stock market indices of Asian Developed and Emerging Markets which are Japan (Nikkei 225), South Korea (KOSPI), Pakistan (KSE 100), China (SSE Composite), Sri Lanka (ASPI), India (BSE 200) and Malaysia (KLSE composite) from January 2001 to December 2019. Methodology: To analyze long-run and short-run relationships among the Asian developed and emerging stock markets, this study practices Descriptive Statistics, Correlation Matrix, Unit Root Test, Johansen Co-Integration Test, Vector Error Correction Model, Granger Causality test, Variance Decomposition and Impulse Response Function (IRF). Main findings: By employing the ADF and P.P. tests, the results specify that the entire variables' data are non-stationary and stationary in exact order, which is 1st difference. The Johnson Co-integration test found one cointegration relationship, where the results are consistent with Granger causality, Variance Decomposition, and Impulse Response Function (IRF). Application of the study: As the current research has focused on finding out the comovements in the Asian developed and emerging markets. So, the applications are that the survey found short-run and long-run relationships in these countries' stock markets. The study's originality: The current study has selected seven Asian developed and emerging stock markets and weekly updated time series data to investigate short-term and long-term linkages. So, this study found long-run comovements in these stock indices, which contributes to the literature. In addition, these stock markets have limited diversification benefits for international investors, while short-term diversification benefits may exist.

scholarly journals Are EU Members’ Economies an “Engine” of the EU Candidates’ Economies?

2021 ◽  
Vol 21 (2) ◽  
pp. 97-117
Author(s):  
Marija Radulović ◽  
Milan Kostić
Keyword(s):  
Developing Country ◽  
Positive Impact ◽  
Positive Influence ◽  
Economic Benefits ◽  
Developed Country ◽  
Economic Relations ◽  
Long Run ◽  
Short Run ◽  
The Eu

Abstract Research background: Economic relations between countries members of the EU and EU candidates are very strong. Germany and France have the leading economies of the EU, are in the top ten economies worldwide, and drivers of EU development. Serbia has strong economic relations with Germany and France, especially with Germany. Therefore, it is necessary to examine whether Germany and France impact the development of Serbia. Purpose: The purpose of the study is to determine if there is a positive influence of a developed country on a developing country. The aim of the paper is to determine whether there is a long- and short-term positive relationship between Germany and France (EU members) and the Serbian economy (EU candidate). Research methodology: A Vector Error Correction Model is used to analyze quarterly data from 2002Q2 to 2018Q2. Results: The results showed a statistically significant long-term relationship between Germany and France and Serbia’s real GDPs, so EU members have a long-term positive impact on the economy of EU candidates. In the case of the French, there is a short-run positive impact on the Serbian economy. For Germany, it is not the case. Novelty: This paper fills the literature gap about the influence of a developed country on a developing country. Recommendations for policymakers in EU candidates could be that if they want to motivate people to accept the process of access to the EU, they must provide them with more information about long-run economic benefits from the association to the EU.

scholarly journals Pooled Mean Group Approach to Test the Determinants of Financial Integration: Evidence From OECD and G20 Countries

2019 ◽  
Vol 10 (3) ◽  
pp. 366
Author(s):  
Ahliman Abbasov
Keyword(s):  
Economic Growth ◽  
Financial Crisis ◽  
Financial Integration ◽  
Financial Liberalization ◽  
Global Financial Crisis ◽  
Positive Impact ◽  
Trade Integration ◽  
Long Run ◽  
Short Run ◽  
The Impact

This study investigates the role of financial liberalization, trade integration, economic growth and global financial crisis on financial integration level of selected OECD and G20 countries during the period of 2000-2016. PMG technique has been implemented to estimate the ARDL model. Regression results suggest a statistically significant long run co-integration relationship between financial integration and independent variables. Analysis also concludes that there are both long run and short run positive impact of trade integration level on financial integration level. The study also concludes that the global financial crisis has had a negative influence on global financial integration both in the short run and long run. But according to the regression results the impact of financial liberalization on the actual financial integration level of the countries only appears in the long run. Results also indicate that positive impact of economic growth on financial globalization level appears only in the long run.

Common Markets Measuring Price Integration in European Agricultural Markets

2006 ◽  
Author(s):  
Crina Viju ◽  
James Nolan ◽  
William A. Kerr
Keyword(s):  
Market Integration ◽  
The European Union ◽  
Monthly Data ◽  
Agricultural Prices ◽  
Eu Integration ◽  
Long Run ◽  
Short Run ◽  
The Individual ◽  
Common Markets ◽  
The Eu

The accession of Austria, Finland and Sweden to the European Union (EU) is assessed from the perspective of market integration in key agricultural sectors. An empirical investigation is conducted using monthly data for two periods: from 1975:01-1994:12 (the pre-EU period) and 1995:01-2004:12 (post-EU period). The existence of market integration both within the countries and within the EU is tested using time-series methods. A long-run equilibrium between prices for the same good in different markets does not exclude the possibility of short-run deviations in the individual data, so part of this analysis consists of estimating an econometric model (error correction) to uncover long-run effects of price deviations. Only a subset of agricultural prices moves together after EU integration.     Full text available at: https://doi.org/10.22215/rera.v2i1.164

13. The economics of monopoly abuse

2019 ◽  
pp. 301-308
Author(s):  
Sandra Marco Colino
Keyword(s):  
Market Price ◽  
Expert Witnesses ◽  
Relevant Market ◽  
Strategic Behaviour ◽  
Privileged Position ◽  
Competitive Price ◽  
Long Run ◽  
Short Run ◽  
The Eu ◽  
Competition Enforcement

This chapter considers the economics of monopoly abuse. A monopolist is a firm which is the sole supplier in a relevant market. Monopolists are able to determine the market price. This will be higher than the competitive price, with the quantity supplied being lower. This situation leads to a loss of welfare to society as a whole, and also a redistribution of income from some of the monopolist’s customers to the monopolist. The monopolist may also engage in wasteful strategic behaviour to protect its privileged position. In both the EU and UK regimes, competition enforcement is largely complaint driven. This forces the courts, and therefore economists as expert witnesses, to consider the (anti-)competitive impact of short-run activity that might be expected to have little in the way of long-run repercussions.

Financial integration via panel cointegration approaches in ASEAN+5

2016 ◽  
Vol 43 (1) ◽  
pp. 2-15 ◽  
Author(s):  
Najla Shafighi ◽  
Abu Hassan Shaari ◽  
Behrooz Gharleghi ◽  
Tamat Sarmidi ◽  
Khairuddin Omar
Keyword(s):  
Neural Network ◽  
Exchange Rate ◽  
Interest Rate ◽  
Financial Integration ◽  
Panel Cointegration ◽  
Real Output ◽  
Content Type ◽  
Mlp Neural Network ◽  
Long Run ◽  
Short Run

Purpose – The purpose of this paper is to identify whether any financial integration exists among ASEAN+5 members and some East Asian countries, including China, Japan, Korea, Hong Kong, and Taiwan, through interest rate, exchange rate, level of prices, and real output. Design/methodology/approach – Therefore, the authors intend to identify any long-term relationship among these variables utilizing the data in the most efficient manner via panel cointegration and panel unit root tests. The study likewise uses a panel-based vector error correction (panel-vec) model for comparison and also short-run relationship analysis. The long-run relationship is estimated using dynamic ordinary least square technique and a panel multi-layer perceptron (MLP) neural network. Findings – For the ten countries under consideration, the empirical result supports the long-run equilibrium relationship among real output, exchange rate, interest rate, and level of prices, and that the cointegration relationship implies unidirectional causality from exchange rate to real output. This result is favorable to a model that contains real output as a dependent variable and exchange rate, interest rate, and level of prices as explanatory variables. Panel-vec results indicate no evidence of short-run causality from exchange rate to real output. Furthermore, the comparison result of long-run equation estimation shows the superiority of neural networks over econometric models. Originality/value – This paper adds to the literature by examining the financial cointegration using a panel model that contains real exchange rate, interest rate, real output, and inflation rate in ASEAN+5. Additionally this paper applied the MLP neural network to yield a robust estimation of the long-run equation obtained among the variables.

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