scholarly journals Did COVID-19 Impact the Connectedness Between Green Bonds and Other Financial Markets? Evidence From Time-Frequency Domain With Portfolio Implications

2021 ◽  
Vol 9 ◽  
Author(s):  
Muhammad Abubakr Naeem ◽  
Imen Mbarki ◽  
Majed Alharthi ◽  
Abdelwahed Omri ◽  
Syed Jawad Hussain Shahzad
Keyword(s):  
Global Economy ◽  
Financial Econometrics ◽  
Financial Assets ◽  
Health Crisis ◽  
Time Frequency ◽  
Hedging Effectiveness ◽  
Long Run ◽  
Hedge Ratios ◽  
Strongly Connected ◽  
The Impact

COVID-19 has morphed from a health crisis to an economic crisis that affected the global economy through several channels. This paper aims to study the impact of COVID-19 on the time-frequency connectedness between Green Bonds and other financial assets. Our sample includes the global stock market, bond market, oil, USD index, and two popular hedging alternatives, namely Gold and Bitcoin, from May 2013 to August 2020. First, we apply the methodologies of Diebold and Yilmaz (International Journal of Forecasting, 2012, 28(1), 57–66) and Baruník and Křehlík (Journal of Financial Econometrics, 2018, 16(2), 271–296). Then, we estimate hedge ratios and hedge effectiveness of green bonds for other financial assets. Green bonds are found to have a great weight in the overall network, particularly strongly connected with the USD index and bond index. While the bi-directional relationship with USD persists during COVID, the connectedness with conventional bonds is also strengthened. Notably, we find a weak relationship between Green bonds and Bitcoin, both in the short and long run. As portfolio implications, Gold and USD have the highest hedge ratio, which is confirmed by the hedging effectiveness. In contrast, oil and stocks exhibit the lowest hedging effectiveness. Our findings imply that financial assets might have a heterogeneous relationship with green bonds. Furthermore, despite its infancy, it seems that the role of green bond during a crisis should not be ignored, as it can be a hedger for some assets, while a contagion amplifier during crisis times.

scholarly journals The impact of the COVID-19 pandemic on digital globalization

2021 ◽  
Vol 129 ◽  
pp. 06008
Author(s):  
Maria Loredana Popescu ◽  
Svetlana Platagea Gombos ◽  
Sorin Burlacu ◽  
Amza Mair
Keyword(s):  
Global Economy ◽  
World Economy ◽  
Value Added ◽  
Digital Transformation ◽  
Lessons Learned ◽  
Health Crisis ◽  
Main Research ◽  
Documentary Analysis ◽  
The Impact

Research background: After more than a year of the Covid-19 pandemic, we can investigate whether it caused a shock to the global economy, pushing for deglobalization, or on the contrary, it was a challenge for digital globalization and digital transformation of economies. Through this research we join the research contributions that examine the process towards digital globalization that characterizes the world economy, its impact on businesses, consumers, and governments. We also discuss the challenges posed by the crisis caused by the coronavirus pandemic to globalization and perhaps the acceleration of the digital transformation of economies. Purpose of the article: The aim of this research is to highlight the impact of the COVID-19 pandemic in the age of digital globalization. Methods: Documentary analysis, as the main research method, is doubled by a case study that allows us to highlight the specific characteristics of digital globalization. Findings & Value added: The findings of the research allowed us to highlight the essential aspects of digital globalization that were perhaps exacerbated by the Covid-19 pandemic, but which contribute greatly to understanding the phenomenon of globalization. Our research also reveals four lessons learned in the COVID-19 pandemic. We also present some considerations regarding the globalization after the health crisis.

scholarly journals Relations and Emotions beyond the Boundaries in the Post Crisis Era – An Analysis of the Impact of Selected Variables on the Indian Stock Market

2018 ◽  
Vol 4 (8) ◽  
pp. 72
Author(s):  
Pooja Yadav ◽  
Nitin Huria
Keyword(s):  
Stock Market ◽  
Global Economy ◽  
Stock Index ◽  
Asia Pacific ◽  
Macroeconomic Variables ◽  
Long Run ◽  
Short Run ◽  
Current Scenario ◽  
Indian Stock Market ◽  
The Impact

From a decade or so Indian continent has become the centre of attraction in the global economies. This changed outlook is due to the fact that India embraces vast availability of resources and opportunities which makes it the most vibrant global economy in the current scenario of worldwide sluggishness. On this path of growth and prosperity India is showing stiff commitments and competitive edges with developed as well as emerging countries. To be more specific, during this voyage in the Asia pacific region recently on one side India has seen stronger bonding with some of its old mates like Japan but on the other part it has faced strain like situation from its stronger competitor contender china on the same time. Hence, in this context the main aim of this paper is to examine the long run and short run equilibrium impacts of Japan and Chinese stock index as well as macroeconomic variables impact on Indian stock market. This paper finds the presence of both long and short run equilibrium impacts from China and Japan to India. In case of Japanese financial market (Nikki 225) has a trivial negative but significant long run impact whereas, the Chinese stock index (SSE composite) is operating at the short run with the same mild negative but significant impact on the Indian stock market. The results of the impact of macroeconomic variables find the existence of long run as well as short run equilibrium from some of the selected variables on Indian stock market.

scholarly journals The Contribution of Sustainable Tourism to Economic Growth and Employment in Pakistan

2019 ◽  
Vol 16 (19) ◽  
pp. 3785 ◽  
Author(s):  
Faiza Manzoor ◽  
Longbao Wei ◽  
Muhammad Asif ◽  
Muhammad Zia ul Haq ◽  
Hafiz ur Rehman
Keyword(s):  
Economic Growth ◽  
South Asian ◽  
Global Economy ◽  
Tourism Industry ◽  
Policy Implications ◽  
Future Research ◽  
Asian Countries ◽  
Long Run ◽  
Augmented Dickey Fuller ◽  
The Impact

In the global economy, tourism is one of the most noticeable and growing sectors. Thissector plays an important role in boosting a nation’s economy. An increase in tourism flow canbring positive economic outcomes to the nations, especially in gross domestic product (GDP) andemployment opportunities. In South Asian countries, the tourism industry is an engine ofeconomic development and GDP growth. This study investigates the impact of tourism onPakistan’s economic growth and employment. The period under study was from 1990 to 2015. Tocheck whether the variables under study were stationary, augmented Dickey–Fuller andPhillips–Perron unit root tests were applied. A regression technique and Johansen cointegrationapproach were employed for the analysis of data. The key finding of this study shows that there isa positive and significant impact of tourism on Pakistan’s economic growth as well as employmentsector and there is also a long‐run relationship among the variables under study. This studysuggests that legislators should focus on the policies with special emphasis on the promotion oftourism due to its great potential throughout the country. Policy implications of this recent studyand future research suggestions are also mentioned.

scholarly journals A Perspective on How Coronavirus Commenced and its Disruptive Impact on Global Economy

2021 ◽  
Vol 4 (3) ◽  
Author(s):  
Ajit Kumar Jaiswal
Keyword(s):  
Global Health ◽  
Economic Burden ◽  
Global Economy ◽  
Extended Period ◽  
Economic Downturn ◽  
Health Crisis ◽  
Demand And Supply ◽  
Scarce Resources ◽  
New Methodologies ◽  
The Impact

This COVID-19 pandemic has a colossal impact on individuals as well as society. The discipline of health economics has grown significantly in recent years and new methodologies and techniques have been developed to evaluate the economic burden of the diseases. Amid the lockdown, scarce resources and increasing medical costs have highlighted the need to quantify the burden of COVID-19 on the healthcare system and thus the present study tried to make accurate economic assessments of the impact of this disease. The outbreak of the COVID-19 pandemic is an unprecedented shock to the economies globally. With the prolonged nation-wide lockdown, global economic downturn, and imbalances of demand and supply sides, the global economy is facing an extended period of slowdown, which is likely to be existing for a while now. The magnitude of the economic impact will depend upon the duration and severity of this global health crisis and the manner in which the situation unfolds once the economy starts to recover

The Responsibility Paradox

2021 ◽  
pp. 150-168
Author(s):  
Amy Yamei Wang ◽  
Cheryl Qianru Zhang ◽  
Eko Liao
Keyword(s):  
Corporate Social Responsibility ◽  
Interior Design ◽  
Real Life ◽  
Business World ◽  
Health Crisis ◽  
Long Run ◽  
Corporate Social ◽  
The Impact

As countries start to emerge from the pandemic with the development of vaccines, the impact of COVID-19 and the changes it has initiated in the business world will continue to be felt across industries. In this chapter, real-life stories from three different industries—chain restaurants, interior design, and cafés—and the lessons they have learned will be discussed and analyzed. The role of corporate social responsibility (CSR) in SMEs is highlighted as a strategy in which organizations can promote the long-term sustainability of their business. Then, three companies in various industries will be introduced with details about how COVID-19 has changed their outlook and goals in competing with other firms and the ways in which they confronted the pandemic. Finally, the authors share implications and offer helpful recommendations as to how SMEs can leverage resources smartly to engage in smart CSR initiatives in better dealing with a global health crisis and play a larger role in taking care of stakeholders in the long run.

scholarly journals The Long-Run Effects of the Fed’s Monetary Policy on the Dynamics among Major Asset Classes

2016 ◽  
Vol 51 (1) ◽  
pp. 9-19
Author(s):  
Jia Miao
Keyword(s):  
Monetary Policy ◽  
Financial Markets ◽  
Financial Assets ◽  
Monetary Policies ◽  
Real Estate Markets ◽  
Long Run ◽  
Cointegration Tests ◽  
Asset Classes ◽  
The Impact ◽  
The Relationship

Abstract It is well known that government monetary policies significantly impact financial markets. There have been numerous studies examining the relationship between monetary policy and the prices of financial assets, including equities and bonds. Little, however, has been done to explore the impact of major financial assets on changes in monetary policies. This study examines the impacts of the Federal Reserve’s monetary policy on the dynamics of major financial assets in the U. S. For this purpose, cointegration was tested for between equities, bonds and real estate markets in the period 1980 to 2014, whereas the U. S. monetary base M2 was used as an exogenous variable. Our cointegration tests suggest that the exogenous component of the U. S. M2 significantly affected the interaction among major U. S. financial assets. These findings have implications for both policymakers and market practitioners in terms of portfolio allocation rules.

scholarly journals Implications of the Global Financial Crisis for China: A Dynamic CGE Analysis to 2020

2011 ◽  
Vol 2011 ◽  
pp. 1-9 ◽  
Author(s):  
Anna Strutt ◽  
Terrie Walmsley
Keyword(s):  
Financial Crisis ◽  
Global Economy ◽  
Baseline Level ◽  
Global Financial Crisis ◽  
Long Run ◽  
The World ◽  
Dynamic Cge ◽  
The Global Financial Crisis ◽  
Investment Goods ◽  
The Impact

The global financial crisis resulted in a significant downturn in the global economy, with impacts felt throughout the world. In this paper, we use a dynamic global general equilibrium model to explore the longer-term impacts of the financial crisis, with a particular focus on China. The economies of most countries suffered to some extent, with the extent of declines in the long run likely to depend on the extent to which investment declines. Our results suggest that overall the financial crisis leads to international trade falling by approximately 14 percent from the 2020 baseline level. Within this, the composition of trade changes, particularly reflecting changes in demand for construction of investment goods and increasing longer-term demand from economies like China. We also briefly consider the impact of a more protracted recovery from the crisis, which has even more significant impacts on the global economy.

scholarly journals Prospects for the Development of Russian Export in the Context of Digitalization

2020 ◽  
Vol 11 (5) ◽  
pp. 114
Author(s):  
Ekaterina Klimakova ◽  
Alireza Nasiri
Keyword(s):  
Emerging Economies ◽  
Global Economy ◽  
Transport Equipment ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Doing Business ◽  
Long Run ◽  
Global Trend ◽  
Short Run ◽  
The Impact

The global trend in digitization has revolution the global economy and the way of doing business in our world currently. The digital trend is instrumental to globalization and specifically international trade. In Russia, the application of digitization is relatively low compared to other emerging economies. Therefore, it becomes interesting to assess the prospects of digitization in increasing export of the country and extensively, if such influence on export is industrial sensitive. To accomplish this, we assessed industrial export of Russia and used panel Autoregressive Distributed Lag (ARDL) technique to determine the impact of digitization on Russia’s export. By implementing Mean Group (MG) estimator which was adjudged to be suitable for this model through the Hausman test, it could be revealed that the impact of digitization is more intense in the short-run. The long-run effect is not statistically significant. Based on industries, digitization is significantly responsible for the export of Crude materials, inedible, except fuels; and Machinery and transport equipment in the short-run while also contributes to the long-run increase in export of Beverages and tobacco. The prospect can be increased when the country adapts and adopts more in the global trend.

Stochastic Logistic Model of the Global Financial Leverage

2017 ◽  
Vol 18 (1) ◽  
Author(s):  
Alexander D. Smirnov
Keyword(s):  
Gamma Distribution ◽  
Financial Stability ◽  
Global Economy ◽  
Rate Of Change ◽  
Financial Assets ◽  
Debt Accumulation ◽  
Long Run ◽  
Stochastic Logistic Model ◽  
Fokker Plank Equation ◽  
Leverage Dynamics

AbstractDebt, as one of basic human relations, has profound effects on economic growth. Debt accumulation in the global economy was modeled by the stochastic logistic equation reflecting causality between leverage and its rate of change. The model, identifying interactions and feedbacks in aggregate behaviour of creditors and borrowers, addressed various issues of macrofinancial stability. Qualitatively diverse patterns, including the Wicksellian (normal) market, the Minsky financial bubbles and the Fisherian debt-deflation, were discerned by appropriate combinations of rates of return, spreads and leverage. The Kolmogorov-Fokker-Plank equation was used to find out the stationary gamma distribution of leverage that was instrumental for the evaluation of appropriate failure and survival functions. Two patterns corresponding to different forms of a stationary gamma distribution were recognized in the long run leverage dynamics and were simulated as scenarios of a possible system evolution. In particular, empirically parameterized asymptotical distribution indicated excessive leverage and unsustainable global debt accumulation. It underlined the necessity of comprehensive reforms aiming to decrease uncertainty, debt and leverage. Assuming these reforms were successfully implemented, global leverage distributions would have converged in the long run to a peaked gamma distribution with the mode identical to the anchor leverage. The latter corresponded to a balanced long run debt demand and supply, hence to fairly evaluated financial assets fully collateralized by real resources. A particular case of macrofinancial Tobin’s q-coefficients following the Ornstein-Ulenbeck process was studied to evaluate a reasonable range of squeezing the bloated world finance. The model was verified on data published by the IMF in Global Financial Stability Reports for the period 2003–2013.

scholarly journals COVID-19 and Spillover Effect of Global Economic Crisis on the United States’ Financial Stability

2021 ◽  
Vol 12 ◽  
Author(s):  
Khurram Shehzad ◽  
Liu Xiaoxing ◽  
Faik Bilgili ◽  
Emrah Koçak
Keyword(s):  
United States ◽  
Economic Crisis ◽  
Financial Stability ◽  
Global Economy ◽  
The United States ◽  
Financial Instability ◽  
Future Expectations ◽  
Health Crisis ◽  
The Government ◽  
The Impact

Due to the novel coronavirus pandemic (COVID-19), the lockdown engendered has had a vicious impact on the global economy. This analysis’ prime intention is to evaluate the impact of the United States’ economic and health crisis as a result of COVID-19 on its financial stability. Additionally, the investigation analyzed the spillover impact of the worldwide economic slowdown experienced by COVID-19 on the United States’ financial volatility. The study applied an autoregressive distributed lag (ARDL) model and discovered that the economic and health crises that occurred in the United States portentously upset the future expectations of its investors. Conspicuously, the health crisis in Spain and Italy were ominous spillovers of the United States’ financial instability in the short-run. Likewise, an economic crisis ensued in the United Kingdom because of COVID-19 causing spillover for the United States markets’ financial instability. The examination evaluated that Asian and African nations’ economic crises perilously affects the United States’ financial stability. The study determined that financial instability occurred in the United States due to its own economic and health crises persisted for a longer period than financial disequilibrium that occurred in other nations. The analysis suggested some strategies of smart lockdown that the government of the United States and other nations should follow to restart the economic cycle through tighter controls to minimize losses by following the steps of (a) preparing a lockdown checklist, (b) monitoring completion of lockdown tasks, and (c) complete a close-down stock take or count.

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