scholarly journals Pakistan’s Bilateral Trade under MFN and SAFTA: Do Institutional and Non-Institutional Arrangements Matter?

2017 ◽  
Vol 56 (1) ◽  
pp. 59-78 ◽  
Author(s):  
Nasir Iqbal ◽  
Saima Nawaz
Keyword(s):  
Empirical Analysis ◽  
South Asian ◽  
Fixed Effects ◽  
Bilateral Trade ◽  
Trade Agreements ◽  
Institutional Arrangements ◽  
Institutional Framework ◽  
Fixed Effects Model ◽  
Long Run ◽  
The Impact

The purpose of this study is two fold. First, to estimate the impact of institutional and non-institutional arrangements on bilateral trade, and second to analyse the impact of SAFTA on bilateral trade in the short as well as in the long run. The empirical analysis which is based on the panel of eight South Asian countries, comprising data over the period i.e. 1975–2013 is conducted using fixed effects model along with Pooled Mean-Group (PMG) estimator for estimating the short and long-run relationships. The analysis has shown that trade agreements including South Asian Free Trade Area (SAFTA) and the Most Favoured Nation (MFN) are not effective in promoting trade, due to low institutional quality and stringent non-institutional arrangements, including high tariff along with low physical infrastructure. Further empirical analysis has shown that both SAFTA and MFN can only contribute to bilateral trade significantly, if complemented by institutional framework. As a policy lesson, to improve the trade ties between India and Pakistan, improvement in physical as well as soft infrastructure is required. Any trade agreements between the two, including MFN can only be effective, when it is supported by a well-defined and enforced institutional framework that ensure the implementation of policy reforms needed to reduce tariff rate and remove non-tariff barriers.

scholarly journals The relationship between debt and a firm’s performance: the impact of institutional factors

2019 ◽  
Vol 45 (9) ◽  
pp. 1272-1291 ◽  
Author(s):  
Rosa Forte ◽  
José Miguel Tavares
Keyword(s):  
Fixed Effects ◽  
Negative Relationship ◽  
Research Area ◽  
Institutional Framework ◽  
Market Regulation ◽  
Fixed Effects Model ◽  
Content Type ◽  
Macroeconomic Variables ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to contribute to the existing literature on the relationship between debt and firms’ performance, by focusing on the influence of the institutional framework on this relationship and on the role of macroeconomic variables in explaining performance. Design/methodology/approach The present work is based on a large sample of 48,840 manufacturing firms from nine European countries covering the 2008–2013 period and uses a fixed effects model. Findings Results show that the impact of debt on a firm’s performance depends on the measure of debt (short-term debt positively affects a firm’s performance, whereas long-term debt presents a negative relationship) and that the institutional framework is indeed affecting the relationship between debt and a firm’s performance: the positive effect of debt on a firm’s performance tends to be higher the greater the “efficiency of the legal system” and the greater the “credit market regulation.” Macroeconomic variables also play a key role in explaining performance. Originality/value Unlike most of the existing studies, which focus only on the relationship between debt and firms’ performance in a single country, the present work uses a sample of firms from nine countries with the purpose of filling a research gap and bringing new empirical evidence to this research area.

Investigating the Effect of Diplomatic Representation on Trade

2021 ◽  
pp. 188-207
Author(s):  
Danijel Mlinaric ◽  
Hrvoje Josic ◽  
Cindy Thompson
Keyword(s):  
Fixed Effects ◽  
Bilateral Trade ◽  
Trade Flows ◽  
Fe Model ◽  
Random Effects Model ◽  
Fixed Effects Model ◽  
Policy Makers ◽  
Economic Diplomacy ◽  
Bilateral Trade Flows ◽  
The Impact

Economic diplomacy is an unavoidable tool for improving economic standards, and it needs to be an important instrument for policy makers in stimulating international trade and supporting domestic firms. This chapter analyses the impact of economic diplomacy on bilateral trade flows in Croatia in the period from 1992 to 2017. The authors use an applied gravity model of trade by employing fixed effects model (FE), random effects model (RE), and pseudo Poisson maximum likelihood (PPML) estimator. PPML estimator takes into count zero trade flows because estimating zero trade flows with OLS estimator could lead to several biases. The problem of dependence between diplomacy representatives was solved by constructing individual regressions using FE model and PPML estimator. The hypothesis of the chapter, which was tested, states that diplomatic representation has had positive and significant effects on bilateral trade flows (imports and exports) of Croatia. The results of the analysis have shown that the diplomatic representation via embassies and consulates is a relevant trade and trade-enhancing factor.

Dampak Kebijakan Moneter Pada Output Di Negara-Negara ASEAN Tahun 1980-2014

2017 ◽  
Vol 4 (1) ◽  
pp. 58-70
Author(s):  
Nur Widiastuti
Keyword(s):  
Monetary Policy ◽  
Interest Rate ◽  
Fixed Effects ◽  
Empirical Studies ◽  
Negative Relationship ◽  
Least Square ◽  
Fixed Effects Model ◽  
State Data ◽  
Ordinary Least Square ◽  
The Impact

The Impact of monetary Policy on Ouput is an ambiguous. The results of previous empirical studies indicate that the impact can be a positive or negative relationship. The purpose of this study is to investigate the impact of monetary policy on Output more detail. The variables to estimatate monetery poicy are used state and board interest rate andrate. This research is conducted by Ordinary Least Square or Instrumental Variabel, method for 5 countries ASEAN. The state data are estimated for the period of 1980 – 2014. Based on the results, it can be concluded that the impact of monetary policy on Output shown are varied.Keyword: Monetary Policy, Output, Panel Data, Fixed Effects Model

scholarly journals Cultural and Creative Cities and Regional Economic Efficiency: Context Conditions as Catalyzers of Cultural Vibrancy and Creative Economy

2021 ◽  
Vol 13 (13) ◽  
pp. 7150
Author(s):  
Silvia Cerisola ◽  
Elisa Panzera
Keyword(s):  
Fixed Effects ◽  
Local Context ◽  
Creative Economy ◽  
Fixed Effects Model ◽  
Creative Cities ◽  
Economic Output ◽  
Innovative Methodology ◽  
Holistic Conception ◽  
Panel Fixed Effects ◽  
The Impact

Following the hype that has been given to culture and creativity as triggers and enhancers of local economic performance in the last 20 years, this work originally contributes to the literature with the objective of assessing the impact of cultural and creative cities (CCCs) on the economic output of their regions. In this sense, the cultural and creative character of cities is considered a strategic strength and opportunity that can spillover, favoring the economic system of the entire regions in which the cities are located. Through an innovative methodology that exploits a regional production function estimated by a panel fixed effects model, the effect of cities’ cultural vibrancy and creative economy on the output of their regions is econometrically explored. The data source is the Cultural and Creative Cities Monitor (CCCM) provided by the JRC, which also allows the investigation of the possible role played by the enabling environment in catalyzing the action of cultural vibrancy and creative economy. The results are thoroughly examined: especially through cultural vibrancy, CCCs strategically support the output of their region. This is particularly the case when local context conditions—such as human capital and education, openness, tolerance and trust, and quality of governance—catalyze their effect. Overall, CCCs contribute to feeding a long-term self-supporting system, interpreted according to a holistic conception that includes economic, social, cultural, and environmental domains.

Endogenous Preferential Trade Agreements: An Empirical Analysis

2003 ◽  
Vol 2 (1) ◽  
Author(s):  
Christopher S Magee
Keyword(s):  
Political Economy ◽  
Empirical Analysis ◽  
Bilateral Trade ◽  
Trade Agreement ◽  
Trade Agreements ◽  
Preferential Trade Agreements ◽  
The Political ◽  
Preferential Trade ◽  
Trading Partners ◽  
Regional Agreements

Abstract This paper provides one of the first assessments of the hypothesis that two countries are more likely to form a preferential trade agreement (PTA) if they are already major trading partners. The paper also tests a number of predictions from the political economy literature about which countries are expected to form regional agreements. The results show that countries are more likely to be preferential trading partners if they have significant bilateral trade, are similar in size, and are both democracies. Finally, the paper measures the effect of preferential agreements on trade volumes while, unlike previous studies, treating PTA formation as endogenous.

scholarly journals LA INSERCIÓN COMERCIAL DE CHINA EN LATINOAMÉRICA

2019 ◽  
Vol 78 (310) ◽  
pp. 137
Author(s):  
Jorge Alberto López Arévalo ◽  
Óscar Rodil Marzábal
Keyword(s):  
Costa Rica ◽  
Free Trade ◽  
Fixed Effects ◽  
Bilateral Trade ◽  
Free Trade Agreements ◽  
Trade Agreements ◽  
Trade Integration ◽  
Negative Effect ◽  
The Difference ◽  
Positive Effect

<p>Este trabajo estudia los intercambios bilaterales de China con México, Chile, Costa Rica y Perú desde la óptica del comercio intraindustrial durante 1995-2017. En particular, se analizan las diferencias en el patrón de inserción intraindustrial en un contexto marcado por la existencia (Chile, Costa Rica y Perú) o no (México) de acuerdos de libre comercio con China. El estudio se completa con un análisis econométrico (efectos fijos) de los determinantes del comercio intraindustrial. Los resultados muestran una inserción de bajo perfil intraindustrial, con la excepción de algunas partidas específicas relativas a productos eléctricos y de la industria automotriz. Por otro lado, se confirma el efecto positivo del tamaño de la economía, de la inversión extranjera directa y de la diferenciación de producto, así como negativo de la diferencia en el nivel de ingreso; mientras que existe una indefinición en el papel de los acuerdos de libre comercio con China.<br /><br /></p><p>THE TRADE INTEGRATION OF CHINA IN LATIN AMERICA</p><p> </p><p><strong>ABSTRACT</strong><br />This paper studies China’s bilateral trade with Mexico, Chile, Costa Rica and Peru from the perspective of intra-industrial trade during 1995-2017. In particular, the differences in the pattern of intra-industrial insertion are analyzed in a context characterized by the existence (Chile, Costa Rica and Peru) or not (Mexico) of free trade agreements with China. An econometric analysis (fixed effects) of the determinants of intra-industrial trade completes the study. The results show a low intra-industrial profile, except for some specific items related to electrical products and the automotive industry. The positive effect of the size of the economy, foreign direct investment and product differentiation is also confirmed, as well as the negative effect of the difference in income level. However, there is an undefined role for free trade agreements with China.</p>

scholarly journals The Impact Of Good Corporate Governance To Manufacturing Firm’s Profitability And Firm’s Value

2016 ◽  
Vol 5 (2) ◽  
pp. 181-196 ◽  
Author(s):  
Johanes Sumarno ◽  
Sendy Widjaja ◽  
Subandriah Subandriah
Keyword(s):  
Corporate Governance ◽  
Fixed Effects ◽  
Negative Impact ◽  
Stock Exchange ◽  
Manufacturing Firms ◽  
Fixed Effects Model ◽  
Good Corporate Governance ◽  
Oecd Principles ◽  
Equitable Treatment ◽  
The Impact

This paper studied the behavior of management toward the implementation of Good Corporate Governance in Indonesia to determine whether it has any influence towards profitability and its implication to the Manufacturing Firms’ value publicly listed in Indonesian Stock Exchange. There were 41 corporations who met the criteria of the survey. The data were analyzed using Panel Regression with fixed effects Model. The empirical findings show that the implementation of Corporate Governance in Indonesia has a positive, significant and direct impact toward firms’ profitability and firms’ value. Corporate Governance principles based on OECD principles that have positive and significant impact to both profitability and Firms’ Valueis Rights of Shareholders, Role of Stakeholders, Responsibilities of the Board Commissioners and Board of Directors. The principles that have significance and negative impact towards corporate profitability and value, are: Equitable treatment of shareholders and Disclosure and Transparencies. The most significant principle influencing profitability and firms’ value is Disclosure and Transparencies. Profitability plays a greater role in influencing Manufacturing Firms’ value in Indonesia. DOI: 10.15408/sjie.v5i2.3542

scholarly journals Appraising the Impacts of Globalization on Gravity Model Economic Systems

2019 ◽  
Vol 5 (09) ◽  
Author(s):  
Dr. Bilal Khlaf Al Omari
Keyword(s):  
Latent Variable ◽  
Bilateral Trade ◽  
Trade Flow ◽  
Trade Agreements ◽  
Economic Systems ◽  
General Hypothesis ◽  
The World ◽  
Set Up ◽  
Time Required ◽  
The Impact

This study aims at exploring the impact of economic globalization factors on the gravity economic systems. Nonetheless, the basis of the research is a gravity economic system exposed to the impacts of globalization, and the concern is to explore the effects of the exposure on the influences of distance and economic sizes on the model. Recognizing the role of population growth and globalization in driving bilateral trade follows is one of the objectives of this research as should be part of an economic model. The study used the modified gravity and globalization variables, data retrieved from the CEPII, the World Fact-book, and the World Bank. The ordinary squares regression and STATA statistical software were used to investigate the hypotheses. The model leading to the general hypothesis that globalization is reducing the cost of entry, and total time required to set up a business and to minimize the bureaucracy associated with registering businesses and launching operations. The trade flow latent variable should contain information on export, import, free trade agreements, preferential trade agreements, and union memberships, which would help in identifying globalization factors that mediate the interaction between global variables and bilateral trade responses.

scholarly journals IMPACT OF HUMAN CAPITAL DEVELOPMENT ON PRODUCTIVITY GROWTH IN EU MEMBER STATES

2018 ◽  
Vol 16 (0) ◽  
pp. 1-12 ◽  
Author(s):  
Alma Mačiulytė-Šniukienė ◽  
Kristina Matuzevičiūtė
Keyword(s):  
Human Capital ◽  
Fixed Effects ◽  
Panel Data Analysis ◽  
Labour Productivity ◽  
Ordinary Least Squares ◽  
Fixed Effects Model ◽  
Education Expenditure ◽  
Member States ◽  
Eu Member States ◽  
The Impact

In this research, we investigate the impact of human capital on labour productivity in European Union member states using panel data analysis. Results of the paper are estimated using the Pooled ordinary least squares (OLS) and Fixed effects model (FEM). The results show that human capital is positively significant in improving the growth of labour productivity in the EU. Our estimates also suggest that the impact occurs after three times lags in case of education expenditure.

The elephant in the room of mutual forbearance

2018 ◽  
Vol 11 (2) ◽  
pp. 257-279 ◽  
Author(s):  
Burak Cem Konduk
Keyword(s):  
Airline Industry ◽  
Fixed Effects ◽  
Research Question ◽  
Fixed Effects Model ◽  
Content Type ◽  
High Performing ◽  
The Us ◽  
Mutual Forbearance ◽  
Low Performance ◽  
The Impact

PurposeThe purpose of this paper is to explain how a multi-market firm develops the motivation to forbear from competition.Design/methodology/approachA two-way fixed effects model with Driscoll and Kraay standard errors investigates the research question with panel data collected from the US scheduled passenger airline industry.FindingsThe results demonstrate that although the interaction of multi-market contact with strategic similarity impairs a firm’s forbearance from competition, the same interaction promotes it as firm performance deteriorates, supporting the hypotheses.Research limitations/implicationsPerformance explains not only how forbearance emerges out of coincidental multi-market contact but also reconciles the mixed evidence for the impact of the two-way interaction between multi-market contact and strategic similarity on forbearance.Practical implicationsAntitrust authorities should pay more attention to low performing firms than to high performing firms in their investigations. Also, managers of multi-market firms should identify multi-market rivals with low performance as targets for the initiation of forbearance.Originality/valueThis study revises the mutual forbearance theory to align it with the accumulating empirical evidence that otherwise refutes its assumption and thereby improves theory’s descriptive and predictive power.

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