scholarly journals The impact of economic sanctions on the country's economy

2021 ◽  
pp. 93-100
Author(s):  
S. Alikhani ◽  
I. P. Khominich
Keyword(s):  
Financial Markets ◽  
Negative Impact ◽  
Economic Structure ◽  
Economic Sanctions ◽  
International Policy ◽  
Economic Problems ◽  
Collective Response ◽  
Macroeconomic Indicators ◽  
The Impact ◽  
Target Country

Currently, sanctions are considered an important tool of international policy for maintaining security and collective response to violations of international order. At the same time, they are a factor of negative impact on the economic situation of the country, growth and production in the target country. Russia and Iran have been under sanctions from Western countries and their allies for many years and are experiencing economic problems in this regard. The article provides a characteristics and comparative analysis of economic sanctions against Russia and Iran, reveals their differences, assesses the impact of sanctions on their economic structure and financial sector. The paper shows that sanctions directly or indirectly affect the country's macroeconomic indicators and cause their decline. The authors give the substantiations for the negative impact of sanctions on the financial markets of Iran and Russia, including the banking and stock markets.

COVID -19 and Indian Financial Markets: A Review

2020 ◽  
Vol 16 (02) ◽  
pp. 1-8
Author(s):  
Kamaldeep Kaur Sarna
Keyword(s):  
Financial Markets ◽  
Financial Institutions ◽  
Financial Services ◽  
Stock Markets ◽  
Global Economy ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Negative Impact ◽  
Management Strategies ◽  
The Impact

COVID-19 is aptly stated as a Black Swan event that has stifled the global economy. As coronavirus wreaked havoc, Gross Domestic Product (GDP) contracted globally, unemployment rate soared high, and economic recovery still seems a far-fetched dream. Most importantly, the pandemic has set up turbulence in the global financial markets and resulted in heightened risk elements (market risk, credit risk, bank runs etc.) across the globe. Such uncertainty and volatility has not been witnessed since the Global Financial Crisis of 2008. The spread of COVID-19 has largely eroded investors’ confidence as the stock markets neared lifetimes lows, bad loans spiked and investment values degraded. Due to this, many turned their backs on the risk-reward trade off and carted their money towards traditionally safer investments like gold. While the banking sector remains particularly vulnerable, central banks have provided extensive loan moratoriums and interest waivers. Overall, COVID-19 resulted in a short term negative impact on the financial markets in India, though it is making a way towards V-shaped recovery. In this context, the present paper attempts to identify and evaluate the impact of the pandemic on the financial markets in India. Relying on rich literature and live illustrations, the influence of COVID-19 is studied on the stock markets, banking and financial institutions, private equities, and debt funds. The paper covers several recommendations so as to bring stability in the financial markets. The suggestions include, but are not limited to, methods to regularly monitor results, establishing a robust mechanism for risk management, strategies to reduce Non-Performing Assets, continuous assessment of stress and crisis readiness of the financial institutions etc. The paper also emphasizes on enhancing the role of technology (Artificial Intelligence and Virtual/Augmented Reality) in the financial services sector to optimize the outcomes and set the path towards recovery.

scholarly journals Macroeconomic Characteristics of Tourism Economy in the Republic of Tunisia

REGIONOLOGY ◽  
2019 ◽  
pp. 224-245
Author(s):  
Marina A. Zhulina ◽  
Vyacheslav M. Kitsis ◽  
Svetlana V. Saraykina
Keyword(s):  
Negative Impact ◽  
Comparative Method ◽  
International Tourism ◽  
The Political ◽  
Factors Affecting ◽  
The World ◽  
Macroeconomic Indicators ◽  
The Republic ◽  
Tourism Economy ◽  
The Impact

Introduction. Tourism is a dynamic, constantly developing sector of the economy. Tourism economy develops along with the society, recreation and tourism. The purpose of the article is to show the features of the impact of tourism on the national economy using the case of Tunisia. The experience of Tunisia is especially useful for the countries where beach recreation has developed and where the political situation has remained difficult for a long time (Egypt, Turkey, Thailand, etc.). Materials and Methods. The article is based on the statistical data provided by the World Tourism Organization, the World Data Atlas and open Internet sources. The study employed general scientific methods (analysis, synthesis, synthesis, comparison, etc.) and special ones (the methods of mathematical statistics, the graphical method, the comparative method, etc.). Results. For the first time, the article has provided a fairly complete description of the macroeconomic indicators characterizing the level of development of international tourism in Tunisia. The article has analyzed the dynamics of inbound and outbound tourism, discussed the factors affecting the volume of international tourism, considered international tourism expenditures and revenues, which to a large extent have a positive or negative impact on the country’s balance of payments. The trends in the development of international tourism in Tunisia have been revealed and the problems facing the industry have been identified. Discussion and Conclusion. The research has revealed that tourism economy largely depends on the political and economic processes taking place in the country. The current level of macroeconomic indicators of tourism economy in Tunisia lags behind the 2008–2009 figures. The results of the study made it possible to assess the current state of international tourism and make a number of suggestions aimed at increasing the level of development of international tourism in the country. The results of the study can contribute to the development of a program aimed to boost tourism economy in Tunisia, one of the key tasks of which should be that of increasing performance at the macro-level.

scholarly journals The Impact of Government Debt Issuance on Short-Term interest rates in Indonesia

2009 ◽  
Vol 11 (3) ◽  
pp. 301
Author(s):  
Sri Adiningsih
Keyword(s):  
Fiscal Policy ◽  
Private Sector ◽  
Financial Markets ◽  
Interest Rates ◽  
Budget Deficit ◽  
Negative Impact ◽  
Government Debt ◽  
Crowding Out ◽  
Short Term ◽  
The Impact

This paper analyzes whether the expansionary fiscal policy funded by issuing debt instruments in financial markets will increase short-term interest rates. If  the expansionary fiscal policy increases interest rates, which decrease private spending especially investment, crowding out occurs. This is interesting because global economic crisis has encouraged many countries to run large budget deficits to stimulate the economy. Indonesia has also run budget deficit during this crisis and even in years before. The impact of such a policy can be significant because Indonesia’s debt market is still narrow and shallow. Therefore, its capability of absorbing the government debt instruments without influencing the private sector funding is limited. This study tests whether the crowding out occurs in Indonesia using a time series econometric model inspired by Cebula and Cuellar’s model. The Cointegration Regression and Error Correction Model (ECM) are used in this study. Monthly data from April 2000 to December 2008 are used for overnight real interbank call money interest rates, real net government bond issues in trading, real narrow money supply, real rate of one-month Certificate of Bank Indonesia, growth of Gross Domestic Product, and real net international capital flows. This empirical study shows that the crowding out problem occurred in Indonesia during the period. This indicates that financing budget deficit in Indonesia by issuing debt instruments in the financial markets has a negative impact on the private sector.

scholarly journals IMPACT of the ECONOMIC CRISIS on Smes (SMALL and MEDIUM-SIZED ENTERPRISES): a GENERAL EVALUATION on Smes in TURKEY

2014 ◽  
Vol 1 (1) ◽  
pp. 169 ◽  
Author(s):  
Oktay Aktürk
Keyword(s):  
Economic Crisis ◽  
Statistical Data ◽  
Negative Impact ◽  
Economic Structure ◽  
Control Mechanisms ◽  
Global Capital ◽  
Country Level ◽  
General Evaluation ◽  
Key Points ◽  
The Impact

Liberalization taking place in the global capital and financial market in recent years and correspondingly the lack of adequate control mechanisms have caused economic crisis at global, regional and country level. While the crises have affected the overall economy, the greatest negative impact has been observed on SMEs. Considering the share of SMEs in total initiatives and employment in worldwide economy, it is seen that they are key points for economies. In this respect, the determination and analysis of the impact of economic crisis on SMEs are very important for a healthy economic development. Starting with this point, in ttis study, especially in the context of recent global crisis, a general assessment on economic crisis has been made and the position of SMEs in the economic structure, the effect of crisis on SMEs has been tried to put forward especially on the basis of Turkey. Several scientific studies and statistical data conducted on SMEs and economic crisis have been examined for this purpose.

scholarly journals Impact of COVID-19 on energy prices and main macroeconomic indicators—evidence from China's energy market

Green Finance ◽  
2021 ◽  
Vol 3 (4) ◽  
pp. 383-402
Author(s):  
Yilin Wu ◽  
◽  
Shiyu Ma ◽  
Keyword(s):  
Value At Risk ◽  
Negative Impact ◽  
Price Volatility ◽  
Energy Price ◽  
Special Role ◽  
Energy Prices ◽  
Vector Autoregressive ◽  
Modeling Analysis ◽  
Macroeconomic Indicators ◽  
The Impact

<abstract> <p>With the COVID-19 pandemic sweeping the world, the development of China's energy industry has been hampered. Although previous studies have shown the global influence of COVID-19 on energy prices and macroeconomic indicators, very few of them examined the impact on China independently, considering the special role of China in this pandemic and economy. In this study, we investigate the impact of the pandemic on several major China energy prices using the ARIMA-GARCH model. Combined with the Value-at-Risk (VaR) theory, we further explore the market risk, which indicates an increase in the tail risk of energy price volatility and the dramatic turbulence in energy markets. In addition, a Vector Autoregressive (VAR) model is developed to analyze how the main macroeconomic indicators are affected when energy prices fluctuate. According to the model results, energy price fluctuations caused by the COVID-19 have a negative impact on economic growth and inflation, with a higher contribution to the latter changes. Based on the modeling analysis results, this paper makes constructive suggestions on how to stabilize energy prices and recover the economic development in the context of the COVID-19 pandemic.</p> </abstract>

scholarly journals Repercussions of COVID-19 on the Indian stock market

2021 ◽  
Vol 5 (S1) ◽  
pp. 1495-1509
Author(s):  
Dhananjay Ashri ◽  
Bibhu Prasad Sahoo ◽  
Ankita Gulati ◽  
Irfan UL Haq
Keyword(s):  
Stock Market ◽  
Financial Markets ◽  
Banking Sector ◽  
Oil And Gas ◽  
Negative Impact ◽  
Long Run ◽  
Short Run ◽  
Indian Stock Market ◽  
The Impact ◽  
Daily Returns

The present paper determines the repercussions of the coronavirus on the Indian financial markets by taking the eight sectoral indices into account. By taking the sectoral indices into account, the study deduces the impact of virus outbreak on the various sectoral indices of the Indian stock market. Employing Welch's t-test and Non-parametric Mann-Whitney U test, we empirically analysed the daily returns of eight sectoral indices: Nifty Auto, Nifty FMCG, Nifty IT, Nifty Media, Nifty Metal, Nifty Oil and Gas, Nifty Pharma, and Nifty Bank. The results unveiled that pandemic had a negative impact on the automobile, FMCG, pharmaceuticals, and oil and gas sectors in the short run. In the long run, automobile, oil and gas, metals, and the banking sector have suffered enormously. The results further unveiled that no selected indices underperformed the domestic average, except NIFTY Auto. 

scholarly journals Statistical Analysis of the Performance of a Big and Open Economy: The Case of the U.S.

2018 ◽  
pp. 10-17
Author(s):  
O. V. Zhuravliov ◽  
О. М. Simachova
Keyword(s):  
United States ◽  
Open Economy ◽  
Developing Economies ◽  
Negative Impact ◽  
The United States ◽  
Us Economy ◽  
The Us ◽  
The World ◽  
Macroeconomic Indicators ◽  
The Impact

The US economy is one of the richest and most diversified economies in the world and keeps its leadership in the global economy for the past 100 years. The United States is a global leader in computer technology, pharmaceuticals and the manufacture of medical, aerospace and military equipment. And although services make up about 80% of GDP, the US remains the second largest producer of industrial goods in the world and is a leader in research and development. President Donald Trump was elected in November 2016, promising a big gap with his predecessor’s regulatory, tax and trade policies. Therefore, the current socio-economic status of the USA and the possible ways of its development in the future are interesting for studying the impact on other economies, in particular, on the Ukrainian economy and the search for new and optimal ways of developing relations between the United States and Ukraine. Key macroeconomic indicators of the US economy in 2011–2018 are analyzed, demonstrating the influence of Donald Tramp’s new policy on changes in the indicators of the economy, the labor market, trade, etc., as well as possible ways of development in the coming years. The review of key macroeconomic indicators gives grounds for classifying the American economy as healthy one. Rates of GDP growth will remain in the range of 2 to 3%. These rates of growth in the world’s largest economy are callable to ensure a substantial increase in the global activity. But uncertainties in the politics may hinder global growth and have clearly negative impact on the investment growth in developed and developing economies.

The effect of weather on the European stock market

2016 ◽  
Vol 43 (9) ◽  
pp. 943-958 ◽  
Author(s):  
Nikolaos Sariannidis ◽  
Grigoris Giannarakis ◽  
Xanthi Partalidou
Keyword(s):  
Stock Market ◽  
Stock Returns ◽  
Negative Impact ◽  
Weather Variables ◽  
Socially Responsible ◽  
Content Type ◽  
Daily Data ◽  
Macroeconomic Indicators ◽  
Significant Negative Impact ◽  
The Impact

Purpose The purpose of this paper is to ascertain whether weather variables can explain the stock return reaction on the Dow Jones Sustainability Europe Index by employing a number of macroeconomic indicators as control variables. Design/methodology/approach The authors incorporate the generalized autogressive conditional heteroskeasticity model in methodology for the period August 26, 2009 to May 30, 2014 using daily data. Findings The empirical results indicate that not only do changes in humidity and wind levels seem to affect positively the European stock market but changes in returns oil and gold prices as well. However, the results show that the volatility of the US dollar/Yen exchange rate and ten-year bond value exerts significant negative impact on companies’ stock returns. Originality/value This study adds to the international literature by documenting the impact of weather variables on socially responsible companies.

The impact of international sanctions on energy security

2020 ◽  
pp. 0958305X2093768
Author(s):  
Jun Wen ◽  
Xinxin Zhao ◽  
Quan-Jing Wang ◽  
Chun-Ping Chang
Keyword(s):  
Regression Analysis ◽  
Energy Security ◽  
Negative Impact ◽  
Economic Sanctions ◽  
Fixed Effect Model ◽  
Policy Makers ◽  
Effect Model ◽  
Different Types ◽  
International Sanctions ◽  
The Impact

This study first investigates different types of sanctions on energy security by employing data from a panel of target countries covering the period 1996–2014 and using the panel fixed effect model. Our evidence indicates that international sanctions do significantly negatively influence the energy security of target countries in some cases. Specifically, unilateral sanctions, U.S. sanctions, economic sanctions, and the intensity of sanctions have a significantly negative impact on energy security. However, plurilateral sanctions, EU sanctions, UN sanctions, and non-economic sanctions have no significant impact on the energy security of target countries. The results of endogeneity concerns are also consistent with the results of the basic regression analysis. Overall, our empirical findings merit particular attention from policy makers of target countries to ensure their energy security when facing international sanctions.

scholarly journals Impact of MiFID II on the Market Volatility—Analysis on Some Developed and Emerging European Stock Markets

Laws ◽  
2021 ◽  
Vol 10 (3) ◽  
pp. 55
Author(s):  
Marius Cristian Miloș
Keyword(s):  
Financial Markets ◽  
Capital Markets ◽  
Stock Markets ◽  
Negative Impact ◽  
Short Term ◽  
Emerging Stock Markets ◽  
Volatility Analysis ◽  
Stock Indexes ◽  
European Stock Markets ◽  
The Impact

The paper investigates whether the implementation of MiFID II, a packet of financial legislation applying broadly to European Union financial markets, has led to a change in the volatility of some European developed and emerging stock markets. We show that for the developed capital markets considered in the analysis, MiFID II did not lead to a decrease in the volatility of capital markets. On the contrary, for all analysis intervals considered (3 months, 6 months, 12 months, 18 months and 24 months), the impact on volatility is positive, with volatility increasing in the case of the FTSE 100, CAC40 and DAX stock indexes. There is a similar significant relationship for the Czech stock market, but only over the three-month interval. For the Polish and Romanian stock markets, which enforced MiFID II later, a negative impact of MiFID II on volatility could also be observed. In the Romanian market, MiFID II had a negative impact on volatility on the short-term horizon, while for the Polish market, the impact of MiFID II on volatility is noticeable on a longer term of 24 months.

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