scholarly journals Commodity Price Volatility during and after the Economic Crisis – Implications for Romania

2013 ◽  
Vol 8 (1) ◽  
pp. 45-52 ◽  
Author(s):  
Larisa Nicoleta Pop ◽  
Flavius Rovinaru ◽  
Mihaela Rovinaru
Keyword(s):  
Economic Crisis ◽  
Economic Status ◽  
National Level ◽  
Price Volatility ◽  
Commodity Price ◽  
Internal Markets ◽  
Wide Range ◽  
The World ◽  
Commodity Price Volatility ◽  
The Impact

Abstract Under the impact of a wide range of forces, the prices of globally traded commodities often experience sudden and significant fluctuations, putting under uncertainty and risk the economic status of producers, consumers and traders from the private to the national level. Although commodity markets are notorious for their price volatility, the events the world economy experienced in recent years, particularly the global economic crisis, offered new connotations to this phenomenon. These price movements reverberated across internal markets all over the world, affecting their statuses. As Central Eastern European countries, due to the processes they have undergone in recent decades, manifest an increased responsiveness to external shocks, Romania experienced the international turmoil in a severe manner. This paper calculates and presents, by comparison, the food price volatility experienced at the international level and on the Romanian market during the years of the crisis and immediately after its appeasement.

scholarly journals Exploring the Dynamic Links between GCC Sukuk and Commodity Market Volatility

2018 ◽  
Vol 6 (3) ◽  
pp. 72 ◽  
Author(s):  
Nader Naifar
Keyword(s):  
Management Practices ◽  
Commodity Prices ◽  
Precious Metals ◽  
Price Volatility ◽  
Commodity Price ◽  
Conditional Correlation ◽  
Dynamic Conditional Correlation ◽  
Commodity Price Volatility ◽  
The Impact ◽  
Risk Ratios

This study investigates the impact of commodity price volatility (including soft commodities, precious metals, industrial metals, and energy) on the dynamics of corporate sukuk returns. Using a sample of sukuk indices from Gulf Cooperation Council (GCC) countries, we study the dynamic conditional correlation using a multivariate generalized autoregressive conditional heteroskedasticity dynamic conditional correlation (GARCH-DCC) process. Empirical results show a time-varying negative correlation between GCC sukuk returns and commodity prices. In fact, a negative conditional correlation among assets of a given portfolio implies higher gain-to-risk ratios. An understanding of volatility and dynamic co-movements in financial and commodity markets is important for portfolio allocation and risk management practices.

scholarly journals Financial speculation impact on agricultural commodity price volatility: TGARCH approach

2020 ◽  
Author(s):  
Algirdas Justinas Staugaitis ◽  
Keyword(s):  
Commodity Prices ◽  
Price Volatility ◽  
Commodity Price ◽  
Agricultural Commodity ◽  
Exogenous Factor ◽  
Market Participants ◽  
Financial Speculation ◽  
Commercial Market ◽  
Commodity Price Volatility ◽  
The Impact

Motivated by agricultural commodity price fluctuations and spikes in the last decade, we investigate whether financial speculation destabilizes the price of agricultural commodities. The aim of this research is to assess the impact of financial speculation on agricultural commodity price volatility. In our study we use weekly returns on wheat, soybean and corn futures from Chicago Mercantile of Exchange. To measure this impact, we apply autoregressive conditional heteroskedasticity (ARCH) technique. We also propose a model with seasonal dummy variables to measure if financial speculation impact on price volatility differs among seasons. The results of our research indicate that financial speculation as an exogenous factor has either no effect or reduces the volatility of the underlying futures prices. Therefore, we conclude that the increase of non-commercial market participants does not make the agricultural commodity prices more volatile or this link is at least questionable.

scholarly journals Measuring the financial effects of mitigating commodity price volatility in supply chains

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Barbara Gaudenzi ◽  
George A. Zsidisin ◽  
Roberta Pellegrino
Keyword(s):  
Supply Chain ◽  
Risk Mitigation ◽  
Price Volatility ◽  
Commodity Price ◽  
Price Risk ◽  
Costs And Benefits ◽  
Content Type ◽  
Advantages And Disadvantages ◽  
Commodity Price Volatility ◽  
The Impact

Purpose Firms can choose from an array of approaches for reducing the detrimental financial effects caused by unfavorable fluctuations in commodity prices. The purpose of this paper is to provide guidance for effectively estimating the financial effects of mitigating commodity price risk volatility (CPV) in supply chain management decisions. Design/methodology/approach This paper adopts two prominent and complementary methodologies, namely, total cost of ownership (TCO and real options valuation (ROV), to illustrate how commodity price risk mitigation strategies can be analyzed with respect to their effect on costs and performance. The paper provides insights through a case study to demonstrate the application of these methods together and establish the benefits and challenges associated with their implementation. Findings The paper illustrates advantages and disadvantages of TCO and ROV and how these approaches can be adopted together to contribute to effective purchasing decisions. Supply chain flexibility is a key capability but requires investments. Holistically measuring the financial effects of flexibility investments is imperative for gaining executive management support in mitigating commodity price volatility. Research limitations/implications This study can provide supply chain professionals with useful guidance for measuring the costs and benefits related to developing strategies for mitigating commodity price volatility. TCO provides a focus on the costs associated with the commodity purchasing process, and ROV enables the aggregation of all the costs and benefits associated with the use of the strategy and synthesizes them into the net value estimate. Originality/value The paper provides a comparison of different but complementary approaches, specifically TCO and ROV, for analyzing the effectiveness of CPV risk mitigation decisions. In addition, these two methods allow supply chain professionals to evaluate and control the financial effects of CPV risk, particularly the impact of mitigation on firm’s cash flows.

scholarly journals COMMODITY PRICE AND INFLATION DYNAMICS: EVIDENCE FROM BRIICS

2021 ◽  
Vol 23 (4) ◽  
pp. 485-500
Author(s):  
Syed Aun R. Rizvi ◽  
Sahminan Sahminan
Keyword(s):  
South Africa ◽  
Inflation Targeting ◽  
Phillips Curve ◽  
Commodity Prices ◽  
Price Volatility ◽  
Commodity Price ◽  
Food Prices ◽  
Energy Prices ◽  
Commodity Price Volatility ◽  
The Impact

In this study, we use a commodity augmented Phillips curve to investigate the impact of global commodity prices on domestic inflation in Brazil, Russia, India, Indonesia, China, and South Africa. Oil and energy prices cause inflationary pressures in all countries, except Russia, where they cause deflationary pressures. In Indiaand Indonesia, global food prices are highly significant and positively related to inflation, while in South Africa precious metal prices impact inflation negatively. For policymakers, this study provides insights on the domestic adjustments required for inflation targeting in response to global commodity price volatility.

Modernisation of Higher Education – Willful Action or Wishful Thinking? The Case of Bulgaria

2020 ◽  
Vol 8 (3) ◽  
pp. 3-17
Author(s):  
Elena Blagoeva
Keyword(s):  
Higher Education ◽  
Economic Crisis ◽  
Negative Impact ◽  
National Level ◽  
Sustainable Growth ◽  
Research Approach ◽  
Case Study Methodology ◽  
The Impact ◽  
The Eu

The impact of the last global economic crisis (2008) on the European economy put a strain on higher education (HE), yet it also pushed the sector towards intensive reforms and improvements. This paper focuses on the “Strategy for the Development of Higher Education in the Republic of Bulgaria 2014-2020”. With a case study methodology, we explore the strategic endeavours of the Bulgarian government to comply with the European directions and to secure sustainable growth for the HE sector. Our research question is ‘How capable is the Bulgarian HE Strategy to overcome the economic and systemic restraints of Bulgarian higher education?’. Because the development of strategies for HE within the EU is highly contextual, a single qualitative case study was chosen as the research approach. HE institutions are not ivory towers, but subjects to a variety of external and internal forces. Within the EU, this is obviated by the fact that Universities obtain their funds from institutions such as governments, students and their families, donors, as well as EU-level programmes. Therefore, to explore how these pressures interact to affect strategic action on national level, the case method is well suited as it enabled us to study the phenomena thoroughly and deeply. The paper suggests the actions proposed within the Strategy have the potential to overcome the delay, the regional isolation and the negative impact of the economic crisis on the country. Nevertheless, the key elements on which the success or failure of this Strategy hinges are the control mechanisms and the approach to implementation. Shortcomings in these two aspects of strategic actions in HE seem to mark the difference between gaining long-term benefits and merely saving face in front of international institutions.

The EU as an “enforcement patchwork”: the impact of national enforcement for compliance with EU water law in Spain and Britain

2013 ◽  
Vol 34 (2) ◽  
pp. 331-353 ◽  
Author(s):  
Mónica García Quesada
Keyword(s):  
Waste Water Treatment ◽  
National Level ◽  
State Level ◽  
Detailed Examination ◽  
Deterrent Effect ◽  
Eu Law ◽  
Wide Range ◽  
The Uk ◽  
The Impact ◽  
The Eu

AbstractFailures of compliance with European Union (EU) directives have revealed the EU as a political system capable of enacting laws in a wide range of different policy areas, but facing difficulties to ensure their actual implementation. Although the EU relies on national enforcement agencies to ensure compliance with the EU legislation, there is scarce analysis of the differential deterrent effect of national enforcement in EU law compliance. This article examines the enforcement of an EU water directive, the Urban Waste Water Treatment Directive, in Spain and the UK. It focuses on the existing national sanctions for disciplining actors in charge of complying with EU requirements, and on the actual use of punitive sanctions. The analysis shows that a more comprehensive and active disciplinary regime at the national level contributes to explain a higher degree of compliance with EU law. The article calls for a detailed examination of the national administrative and criminal sanction system for a more comprehensive understanding of the incentives and disincentives to comply with EU law at the national state level.

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