scholarly journals The Impact of Thailand’s Openness on Bilateral Trade between Thailand and Japan: Copula-Based Markov Switching Seemingly Unrelated Regression Model

Economies ◽  
2020 ◽  
Vol 8 (1) ◽  
pp. 9
Author(s):  
Pathairat Pastpipatkul ◽  
Petchaluck Boonyakunakorn ◽  
Kanyaphon Phetsakda
Keyword(s):  
Exchange Rate ◽  
Bilateral Trade ◽  
Trade Openness ◽  
Markov Switching ◽  
High Growth ◽  
Information Criterion ◽  
Seemingly Unrelated Regression ◽  
Unrelated Regression ◽  
Student’S T ◽  
The Impact

The purpose of this paper is to analyze the impact of trade openness and the factors based on the gravity model on the bilateral trade flows between Thailand and Japan. The factors consist of GDP, distance, trade openness, and exchange rate. Bilateral trade is composed of two flows: Thailand’s export flow to Japan, and Thailand’s import flow from Japan. The specified gravity equations are estimated by Copula-based Markov switching seemingly unrelated regression approach. The best-fitting model is chosen based on the lowest Akaike information criterion (AIC) and Bayesian information criterion (BIC). The Normal and Student’s t distributions are for Thailand’s export equation and Thailand’s import equation, respectively. The Student’s t copula is applied for joint distribution. Analyzing the bilateral trade flow is separated into two situations, namely the high and the low growth markets. Empirical results show that distance provides a positive effect on the export in a high growth regime, but a negative impact on the export in a low growth regime. As for Thailand’s import flow, all variables, but especially trade openness, provide strong evidence supporting significance for both regimes. For the GDPs of both Thailand and Japan, trade openness and the exchange rate increase import flow in a high growth market. Meanwhile, the exchange rate decreases import flow in a low growth market. The Markov Switching Probability Estimation notes that Thailand’s trading with Japan is mostly in the fast-growing market.

scholarly journals ANALISIS PENGARUH VOLATILITAS NILAI TUKAR PADA EKSPOR KOMODITI MANUFAKTUR DI INDONESIA PENERAPAN ESTIMASI DENGAN MENGGUNAKAN DISTRIBUSI LAG POISSONS PADA PERSAMAAN NON LINEAR SEEMINGLY UNRELATED REGRESSION

2005 ◽  
Vol 7 (2) ◽  
pp. 197-236 ◽  
Author(s):  
Dr. Mahyus Ekananda MM., MSE
Keyword(s):  
International Trade ◽  
Exchange Rate ◽  
Probability Function ◽  
Exchange Rate Volatility ◽  
Simultaneous Equation ◽  
Seemingly Unrelated Regression ◽  
System Equation ◽  
Unrelated Regression ◽  
Non Linear ◽  
The Impact

The purpose of this paper is to explain the uncertainty of exchange rate volatility effect to international trade. Its effect to international trade, specially quantity of export, come from accumulation exchange rate fluctuation from several lag. For the record, some previous researches which found out the impact of exchange rates on trade did not consider some of the things. First, the existence of inconstancy on trade. Namely, depend on the change of elasticity along the time of observations. Secondly, the number of lag in independent variable which is needed in order to record the highest impact. Third, there is an accumulation of impact in some previous period. The industry with lower import content become easier to maintain the export level. Export adjustment will occure with different time. This paper found that the industry with lower import content has faster export adjusment than higner import content. The data will separate into two different import content. The industry with higher import content will reduce the export if exchange rate volatility increase.The other purpose of this paper is to explain the algorithm solution for system equation which has non linier form in its parameter, especially in system equation of seemingly unrelated regression. Particularly, this paper will discuss the model formation by inserting poissons probability function, which cause the non linier form. Inserting poissons distibution probablity to equation of trade can estimate the time of adjustment that has a best distribution. Then, this paper will explain the implementation that had been done by Ekananda (2003) about poisons probability function on system equation, the dynamics of equation and the simultaneous equation by using Hausman algorithm (1975).Keywords: exchange rate, poisson distribution, Non Linear SURJEL: C16, C32, F14, F31

scholarly journals The Impact of Financial Development on Economic Growth as Countries Develop Financially and Economically: WAEMU Countries Case

2018 ◽  
Vol 5 (5) ◽  
pp. 83
Author(s):  
Daouda Coulibaly
Keyword(s):  
Financial Development ◽  
West African ◽  
Seemingly Unrelated Regression ◽  
Per Capita Gdp ◽  
Real Gdp ◽  
Unrelated Regression ◽  
Cointegration Tests ◽  
Real Gdp Per Capita ◽  
Per Capita ◽  
The Impact

We analyse financial development’s impact on real gross domestic product per capita in seven West African Economic and Monetary Union (WAEMU) countries from 1970 to 2014. We assume that income and financial development process converge to USA, France and Japan’s levels respectively. An analysis of the unit root and cointegration tests revealed non-stationary and cointegrated series. Estimates are based on the Dynamic Seemingly Unrelated Regression method (DSUR). Our study shows that, (i) the effect of financial development on real per capita GDP improves in WAEMU countries as the latter converge financially to their respective levels in USA, France and Japan; (ii) the effect of financial development on real GDP per capita decreases in the WAEMU countries as they grow economically to reach USA, France and Japan’s income levels; (iii) the degree of the effect of financial development on real per capita GDP in the case of financial systems is stronger than that of the convergence of income.

scholarly journals EFEK KETERBUKAAN PERDAGANGAN PADA VOLATILITAS NILAI TUKAR

2019 ◽  
Vol 10 (1) ◽  
pp. 38-45
Author(s):  
Wayrohi Meilvidiri ◽  
Syahruddin Syahruddin ◽  
Romualdus Turu Putra Maro Djanggo
Keyword(s):  
Exchange Rate ◽  
Money Supply ◽  
Trade Openness ◽  
Exchange Rate Volatility ◽  
Normality Test ◽  
Lm Test ◽  
Exchange Rate Movements ◽  
Negative Effect ◽  
The Exchange Rate ◽  
The Impact

This study uses the q to q dataset for the period 2011-2018, to examine the effect of trade openness on the exchange rate, on the other hand variable money supply, inflation and GDP growth and high-low exchange rates (dummy) will smooth the impact of shocks to the exchange rate . Using the OLS econometric estimator to see the effect of variables and the ARCH method to measure the uncertainty of exchange rate movements. Estimation results show that trade openness (open trade index); the money supply (money supply) and the high-low peak value of the exchange rate have a significant positive effect while the growth variable has a significant negative effect on exchange rate volatility. The LM test simultaneously found ARCH in residual data in lag 1 and lag 2. The normality test found abnormal residuals, while the residual heteroscedasticity test showed no ARCH problems in the last residuals.

Board composition and value relevance of Ghanaian firms: a seemingly unrelated regression approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ebenezer Agyemang Badu ◽  
Ebenezer Nyarko Assabil
Keyword(s):  
Best Practices ◽  
Firm Value ◽  
Value Relevance ◽  
Practical Implication ◽  
Seemingly Unrelated Regression ◽  
Board Composition ◽  
Content Type ◽  
Listed Firms ◽  
Unrelated Regression ◽  
The Impact

PurposeThe purpose of this study is to examine the connection between board composition and value relevance of financial information in Ghana.Design/methodology/approachThe study uses a panel data of 144 firm-year observations of listed firms in Ghana.FindingsThe study finds that a higher fraction of independent directors is associated with lower firm value. The study further finds that board size is positively related to firm value, whereas duality is negatively associated with firm value.Practical implicationsThe practical implication of this paper is that investors and regulators should be mindful that specifying governance composition should not only be based on “so-called” codes of best practices but also the level of the country's or the sector's development and local institutional structures.Originality/valueThis study uses five different measurements of market share and considers the impact of the provision of the Code of Best Practices in Ghana.

Governance and customer value creation in business solutions

2020 ◽  
Vol 35 (6) ◽  
pp. 1089-1098
Author(s):  
Erik Mooi ◽  
Vishal Kashyap ◽  
Marc van Aken
Keyword(s):  
Customer Value ◽  
Seemingly Unrelated Regression ◽  
Content Type ◽  
Relational Norms ◽  
Unrelated Regression ◽  
Short Time Span ◽  
Lighting Systems ◽  
Short Time ◽  
The Impact ◽  
Practical Implications

Purpose This paper aims to consider the impact of contractual and normative governance mechanisms on recommendation intent in a context of healthcare and professional lighting where repeat business from a customer is absent. The authors suggest both contractual and normative governance can create recommendation intent, but only when sufficient customer value is created. Design/methodology/approach The authors draw on a combination of survey and archival data from the supplier and customer in the medical equipment and advanced (business) lighting systems industries. The authors analyze the data using seemingly unrelated regression and mediation tests. Findings Contracts and relational norms can increase customer recommendation intent, but only when the supplier creates customer value. Practical implications The paper’s findings suggest that customers of business solutions are more likely to recommend their supplier when contracts are relatively detailed and when buyers and suppliers attempt to craft strong relational norms, despite service solutions being delivered during a relatively short time span. Originality/value The extant research on business solutions has focused on extended relationships between exchange partners with a high likelihood of repeated transactions. The authors demonstrate how to govern relationships in a solutions context where the likelihood of repeat business from the same customer is low using contractual and normative governance.

scholarly journals Members’ attitudes towards cooperatives and their perception of agency problems

2016 ◽  
Vol 19 (4) ◽  
pp. 23-36 ◽  
Author(s):  
Karin Hakelius ◽  
Helena Hansson
Keyword(s):  
Factor Analysis ◽  
Exploratory Factor Analysis ◽  
Agency Problems ◽  
Postal Questionnaire ◽  
Seemingly Unrelated Regression ◽  
Agricultural Cooperatives ◽  
Unrelated Regression ◽  
Attitude Measures ◽  
The Impact

This study examines whether and how members’ perceptions of agency problems, in terms of the decision problem and the follow-up problem, shape their attitudes to agricultural cooperatives. The study is based on empirical data collected through a postal questionnaire sent to 2,250 Swedish farmers in 2013 (response rate ~40%). Exploratory factor analysis of a set of attitudinal measurement items was used to assess members’ attitudes to agricultural cooperatives. Seemingly unrelated regression analysis was used to identify the impact of members’ perceptions of agency problems on the attitude measures obtained from the exploratory factor analysis. The results suggest that perceived agency problems significantly explain members’ attitudes to their cooperatives. Therefore, working with these problems can be a way for directors of cooperatives to influence members’ attitudes and, in continuation, behaviors to these. This would be one way of developing more sustainable member-director relationships in these cooperatives.

scholarly journals Sensitivity of CESEE countries' export of differentiated products to exchange rate changes

Industrija ◽  
2020 ◽  
Vol 48 (3) ◽  
pp. 7-26
Author(s):  
Aleksandra Đorđević-Zorić
Keyword(s):  
Exchange Rate ◽  
Bilateral Trade ◽  
Negative Impact ◽  
Exchange Rate Volatility ◽  
Value Added ◽  
Differentiated Products ◽  
Average Impact ◽  
Exchange Rate Changes ◽  
The Impact ◽  
The Relationship

The research aims to examine the effects of exchange rate changes on the value of bilateral export of differentiated products in the selected CESEE countries, while controlling the impact of traditional gravity variables. Identifying the determinants that affect the export of high value-added products is of particular importance for this group of countries, while analyzing the effects of exchange rate changes is a contribution to the previous researches. In order to comprehensively understand the relationship between the observed variables, a quantile panel regeression was used to estimate the gravity equation. Examining the heterogeneity of the impact of exchange rate changes and other selected trade factors along the export distribution is another contribution of the paper, given that bilateral trade researches are usually based on assessing the average impact. The results indicate that the CESEE countries' export of differentiated products is significantly influenced by exchange rate changes. Exchange rate volatility has a negative impact, which grows at higher levels of export. The heterogeneity of the impact depending on export level was also confirmed for other determinants discussed in the paper.

scholarly journals Demand Model of China’s Outbound Tourist

2019 ◽  
Vol 3 (2) ◽  
pp. 99
Author(s):  
Yunita Ismail Masjud
Keyword(s):  
Exchange Rate ◽  
Panel Data ◽  
Significant Influence ◽  
Bilateral Trade ◽  
Multiple Regression Model ◽  
Tourism Demand ◽  
Trade Volume ◽  
Demand Model ◽  
Statistical Yearbook ◽  
The Impact

This research objective was to find out the impact of resident income, tourism prices, exchange rate, and bilateral trade in goods towards China's outbound tourism trips. This research used the data from research that done by Yi (2018) and used the China Statistical Yearbook to obtained bilateral trade volume and total number of domestic trips from 2006-2015. Panel data in multiple regression model was used to analyzed the outbound tourism demand in China. The results showed that all variables had significant influence partially towards China’s outbound tourist trips, except travel price. Simultaneously all variables had significant influence towards China's outbound tourist trips.

scholarly journals The Influence of Foreign Direct Investment on the GDP Progression of Pakistan

2020 ◽  
Vol 4 (2) ◽  
pp. 22-33
Author(s):  
Muhammad Aslam Javed
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Direct Investment ◽  
Price Index ◽  
Trade Openness ◽  
Consumer Price Index ◽  
Annual Data ◽  
Monthly Basis ◽  
Beneficiary Country ◽  
The Impact

The Foreign Direct Investment (FDI) inflows play a very important role in the economic development of the beneficiary country. The objective of this study is to check the impact of the exchange rate (and other variables like Foreign Exchange Rate, Consumer price index, Trade Openness, and Energy Imports) on foreign direct investment in Pakistan by taking annual data from the period 1999-2013 (Monthly Basis).By using Descriptive,Correlation and regression , the effect of Consumer Price Index, exchange rate, trade openness, energy imports on Foreign Direct Investment (FDI) of Pakistan.  The study guide the foreign investor and to categorize the factors, that can affect the Foreign Direct Investment (FDI), while investing in Pakistan.

Sign in / Sign up

Export Citation Format

Share Document