scholarly journals Risk Measurement of Stock Markets in BRICS, G7, and G20: Vine Copulas versus Factor Copulas

Mathematics ◽  
2019 ◽  
Vol 7 (3) ◽  
pp. 274 ◽  
Author(s):  
Quanrui Song ◽  
Jianxu Liu ◽  
Songsak Sriboonchitta
Keyword(s):  
Financial Market ◽  
Value At Risk ◽  
Global Economy ◽  
Developed Countries ◽  
Global Market ◽  
Financial Data ◽  
High Dimensional ◽  
Financial Risks ◽  
Vine Copulas ◽  
Better Than

Multivariate copulas have been widely used to handle risk in the financial market. This paper aimed to adopt two novel multivariate copulas, Vine copulas and Factor copulas, to measure and compare the financial risks of the emerging economy, developed economy, and global economy. In this paper, we used data from three groups (BRICS, which stands for emerging markets, specifically, those of Brazil, Russia, India, China, and South Africa; G7, which refers to developed countries; and G20, which represents the global market), separated into three periods (pre-crisis, crisis, and post-crisis) and weighed Value at Risk (VaR) and Expected Shortfall (ES) (based on their market capitalization) to compare among three copulas, C-Vine, D-Vine, and Factor copulas. Also, real financial data demonstrated that Factor copulas have stronger stability and perform better than the other two copulas in high-dimensional data. Moreover, we showed that BRICS has the highest risk and G20 has the lowest risk of the three groups.

scholarly journals A BIT Is Better Than a Lot: Bilateral Investment Treaties and Preferential Trade Agreements

2009 ◽  
Vol 62 (1) ◽  
pp. 1-42 ◽  
Author(s):  
Jennifer L. Tobin ◽  
Marc L. Busch
Keyword(s):  
Developing Country ◽  
Global Economy ◽  
Trade Agreements ◽  
Developed Countries ◽  
Preferential Trade Agreements ◽  
Annual Data ◽  
Bilateral Investment Treaties ◽  
Preferential Trade ◽  
Investment Treaties ◽  
Better Than

The landscape of the global economy is dotted with institutions that regulate investment and trade. In recent years, the number of bilateral investment treaties (BITs) and preferential trade agreements (PTAs), in particular, has grown at a torrid pace; practically every country is a member of at least one—if not many—of these institutions. For all the scholarly attention that these institutions have received, however, there is little research tying BITs and PTAs together. This is surprising, since both aim to increase commerce by making it more predictable. The authors seek to fill this gap in the literature. They argue that a BIT between a developed and a developing country should make it more likely that this pair of states will subsequently form a PTA. That said, the wrinkle in the story is that more is not better in this regard; the authors further argue that a developing country that has many BITs is less likely to conclude a PTA with a wealthy state. The authors test these hypotheses using annual data on pairs of developing and developed countries between 1960 and 2004 and find strong evidence in support of their argument.

scholarly journals Problems of the Development of Trust Management in the Conditions of the Modern Global Financial Market

2021 ◽  
Vol 9 (524) ◽  
pp. 196-201
Author(s):  
S. B. Perminov ◽  
Keyword(s):  
Financial Market ◽  
Tax Evasion ◽  
Cyber Security ◽  
Trust Management ◽  
Developed Countries ◽  
Global Market ◽  
Negative Consequences ◽  
Tax Base ◽  
Structure Changes ◽  
Problematic Issue

The article examines the key problems of the development of the trust management market at the present stage of the formation of the global market. All problems are identified within the framework of the main trends in the development of the financial market, which is associated with the complication of its subject structure, changes in the structure of instruments. In addition, the market is actively expanding due to the introduction of intermediaries and social media as specific market players. The active digitalization of economic activity leads to the formation of new industries, including the need to form a cyber security system. New rules for the functioning of the trust management market require the development of appropriate regulatory support for the functioning of the market and the formation of global value chains. A problematic issue is also the awareness of new clients with trust management services, the rules of the market functioning. It is worth considering the processes of global offshorization, which determines the key directions of normative regulation both in the global market and its regional adaptation. In this regard, the paper discusses the features of the development of regulatory support for the functioning of the financial market in general, as well as the market of trust operations in particular in modern conditions, with examples of the implementation of this conception in certain highly developed countries (United States of America, Great Britain, etc.) taking into account the requirements of international organizations to ensure and regulate these markets in order to counter money laundering, tax evasion, and concealment of the tax base. In addition, the article proposes some options for minimizing the negative consequences of key problems in the development of the trust management market or minimizing the associated risks.

scholarly journals THE IMPACT OF THE CORONAVIRUS PANDEMIC ON THE FORMS AND STRUCTURE OF EMPLOYMENT

2020 ◽  
pp. 117-120
Author(s):  
JOSEPH ARCHVADZE
Keyword(s):  
Labor Market ◽  
Global Economy ◽  
Supply And Demand ◽  
Developed Countries ◽  
Global Market ◽  
Economic Downturn ◽  
Foreign Markets ◽  
Global Demand ◽  
The Impact ◽  
Double Digit

The coronavirus pandemic almost immediately led to a global narrowing of the global economy, a sharp reduction in aggregate supply and demand. The decline in production was especially felt in the second quarter of 2020, when the recession in most countries of the world had a double-digit value. According to IMF forecasts, in general, the economy in developed countries, even in 2021, will not reach the level of 2019. The global economic downturn is accompanied by a massive reduction in jobs, rising unemployment, especially in industries that are focused on foreign markets and serving foreign consumers (export production, reception and service of foreign tourists, international transportation, etc.). The economic crisis caused by the coronavirus also hit global economic and technological ties, led to their widespread fail in many geographical points of the planet, and increased the risk of fragmentation and regionalization of the global market. All this was adequately reflected in change of global demand for labor, in a significant transformation of the structure, size and location of employment, and the state of the labor market as a whole. At the same time, the global crisis did not equally affect the level of employment in different types of activity, the formation of demand for labor, the labor market as a whole; the structure of jobs and employment in individual professions, instead of a proportional change, was uneven - mainly in an asymmetric form.

scholarly journals The Catch-up Process in a Global Economy: An Analytical Approach

1997 ◽  
Vol 2 (1) ◽  
pp. 19-29
Author(s):  
Irfan ul Haque
Keyword(s):  
Latin American ◽  
Economic Performance ◽  
Global Economy ◽  
Developed Countries ◽  
African Countries ◽  
Economics Profession ◽  
Catch Up ◽  
The Developed Countries ◽  
Latin American Countries ◽  
Better Than

The diverse growth experience of economies across the globe is perhaps the most intriguing question that the economics profession faces. The economies of East Asia have grown rapidly over the past three decades, while the economic performance of the South Asian and Latin American countries has been relatively mediocre, although better than that of the African countries, where the per capita incomes have been generally declining. Among the developed countries also, there has been considerable diversity of economic performance.

The Financial Risks of Corporations in the Global Economy

2006 ◽  
Author(s):  
Söhnke M. Bartram ◽  
Gregory W. Brown
Keyword(s):  
Global Economy ◽  
Financial Risks

Australia—The Hidden Jewel

2018 ◽  
Author(s):  
Mahesh K. Joshi ◽  
J.R. Klein
Keyword(s):  
Natural Resources ◽  
Value Chain ◽  
Global Economy ◽  
Good Governance ◽  
Developing Economies ◽  
Raw Materials ◽  
Manufacturing Sector ◽  
Developed Countries ◽  
The United States ◽  
Dutch Disease

The twenty-first century is being touted as the Asian century. With its stable economy, good governance, education system, and above all the abundant natural resources, will Australia to take its place in the global economy by becoming more entrepreneurial and accelerating its rate of growth, or will it get infected with the so-called Dutch disease? It has been successful in managing trade ties with fast-developing economies like China and India as well as developed countries like the United States. It has participated in the growth of China by providing iron ore and coal. Because it is a low-risk country, it has enabled inflow of large foreign capital investments. A lot will depend on its capability and willingness to invest the capital available in entrepreneurial ventures, its ability to capture the full value chain of natural resources, and to export the finished products instead of raw materials, while building a robust manufacturing sector.

scholarly journals Heat Exchanger Network Retrofit of an Oleochemical Plant through a Cost and Energy Efficiency Approach

2021 ◽  
Vol 5 (2) ◽  
pp. 17
Author(s):  
Valli Trisha ◽  
Kai Seng Koh ◽  
Lik Yin Ng ◽  
Vui Soon Chok
Keyword(s):  
Energy Consumption ◽  
Heat Exchanger ◽  
Cost Effective ◽  
Capital Cost ◽  
Global Market ◽  
Annual Saving ◽  
Heat Exchanger Network ◽  
First Case ◽  
Payback Time ◽  
Better Than

Limited research of heat integration has been conducted in the oleochemical field. This paper attempts to evaluate the performance of an existing heat exchanger network (HEN) of an oleochemical plant at 600 tonnes per day (TPD) in Malaysia, in which the emphases are placed on the annual saving and reduction in energy consumption. Using commercial HEN numerical software, ASPEN Energy Analyzer v10.0, it was found that the performance of the current HEN in place is excellent, saving over 80% in annual costs and reducing energy consumption by 1,882,711 gigajoule per year (GJ/year). Further analysis of the performance of the HEN was performed to identify the potential optimisation of untapped heating/cooling process streams. Two cases, which are the most cost-effective and energy efficient, were proposed with positive results. However, the second case performed better than the first case, at a lower payback time (0.83 year) and higher annual savings (0.20 million USD/year) with the addition of one heat exchanger at a capital cost of USD 134,620. The first case had a higher payback time (4.64 years), a lower annual saving (0.05 million USD/year) and three additional heaters at a capital cost of USD 193,480. This research has provided a new insight into the oleochemical industry in which retrofitting the HEN can further reduce energy consumption, which in return will reduce the overall production cost of oleochemical commodities. This is particularly crucial in making the product more competitive in its pricing in the global market.

scholarly journals Globalization Impact on Multinational Enterprises

World ◽  
2021 ◽  
Vol 2 (2) ◽  
pp. 216-230
Author(s):  
Justine Kyove ◽  
Katerina Streltsova ◽  
Ufuoma Odibo ◽  
Giuseppe T. Cirella
Keyword(s):  
Developing Country ◽  
Multinational Enterprises ◽  
Developed Countries ◽  
Global Market ◽  
Data Availability ◽  
Negative Effects ◽  
Developed Country ◽  
Excellent Starting Point ◽  
Starting Point ◽  
The Impact

The impact of globalization on multinational enterprises was examined from the years 1980 to 2020. A scoping literature review was conducted for a total of 141 articles. Qualitative, quantitative, and mixed typologies were categorized and conclusions were drawn regarding the influence and performance (i.e., positive or negative effects) of globalization. Developed countries show more saturated markets than developing countries that favor developing country multinational enterprises to rely heavily on foreign sales for revenue growth. Developed country multinationals are likely to use more advanced factors of production to create revenue, whereas developing country multinationals are more likely to use less advanced forms. A number of common trends and issues showed corporate social responsibility, emerging markets, political issues, and economic matters as key to global market production. Recommendations signal a strong need for more research that addresses contributive effects in the different economies, starting with the emerging to the developed. Limitations of data availability and inconsistency posed a challenge for this review, yet the use of operationalization, techniques, and analyses from the business literature enabled this study to be an excellent starting point for additional work in the field.

Human Capital and International Capital Flows: Evidence from China

2021 ◽  
pp. 016001762198942
Author(s):  
Zhenshan Yang ◽  
Yinghao Pan ◽  
Dongqi Sun ◽  
Li Ma
Keyword(s):  
Human Capital ◽  
Capital Flows ◽  
Global Economy ◽  
Global Market ◽  
International Capital Flows ◽  
International Capital ◽  
Outward Fdi ◽  
Local Economies ◽  
Vector Autoregressive ◽  
External Resources

The pattern of international capital flows has changed dramatically in the process of globalization. In this study, we argue that human capital (HC) facilitates a region’s reversal from being a net recipient of external resources to being an active contributor in the global market. Using a panel vector autoregressive regression method, we examine the relationships among regional HC, foreign direct investment (FDI), and outward FDI during 2004–2015 in China. Our results show that HC plays a key role in both attracting FDI and generating outward FDI. The findings contribute to research on the dynamic capacity building of regions participating in the global economy, especially strengthening HC for local economies participating in the global economy as either investment recipients or contributors.

Internationalization of emerging multinationals: the Latin American case

2014 ◽  
Vol 26 (6) ◽  
pp. 588-602 ◽  
Author(s):  
Mauricio Losada-Otálora ◽  
Lourdes Casanova
Keyword(s):  
Latin American ◽  
Global Economy ◽  
Secondary Data ◽  
Developed Countries ◽  
Analytical Framework ◽  
Content Type ◽  
Emerging Multinationals ◽  
Internationalization Strategies ◽  
American Case ◽  
Key Resources

Purpose – The purpose of this paper is to develop an analytical framework that challenges the condescending view of multinationals of emerging countries. In this paper, it is showed that emerging multinational companies (EMNCs) developed valuable resources that leveraged their internationalization strategies. Design/methodology/approach – An exploratory approach was used to investigate the internationalization strategies of EMNCs. A qualitative study was built on secondary data sources, particularly analysis of cases of the internationalization of Latin American companies. Findings – The internationalization strategies deployed by EMNCs are similar to the strategies of traditional multinationals (firms of developed countries). Similarly, EMNCs exploit, acquire or defend their resources in foreign markets. Additionally, the selection of each strategy depends on the availability, transferability and substitutability of the resources involved in the internationalization. Research limitations/implications – The traditional approaches that study the role of resources in the internationalization of the EMNCs have some shortcomings. It is worth conducting additional research including the approach developed here to advance in the comprehension of the behavior of EMNCs. Practical implications – Managers must identify and develop key resources to invest abroad. Additionally, managers need to take into account the characteristics of the resources of their firms to select an adequate strategy abroad. Originality/value – This paper shows that EMNCs are not resource laggards. Consequently, theoretical and empirical evidence is provided to advance the development of comprehensive theories of the internationalization of EMNCs. This paper offers academics and practitioners with a new focus to analyze the internationalization of EMNCs which are recognized as a driving force of the global economy.

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