scholarly journals Capital Markets, COVID-19 and Policy Measures

2021 ◽  
Vol 21 (33) ◽  
Author(s):  
Khalid ElFayoumi ◽  
Martina Hengge
Keyword(s):  
Trade Openness ◽  
Large Wave ◽  
Macroeconomic Conditions ◽  
Portfolio Flows ◽  
Policy Responses ◽  
Country Level ◽  
Level Data ◽  
Policy Measures ◽  
Asset Classes ◽  
Fiscal And Monetary Policy

The COVID-19 pandemic and associated policy responses triggered a historically large wave of capital reallocation between markets and asset classes. Using high-frequency country-level data, this paper examines if and how the number of COVID cases, the stringency of the lockdown, and the fiscal and monetary policy response determined the dynamics of portfolio flows. Despite more dominant global factors, we find that these domestic factors played an important role, particularly for emerging markets and bond flows, contributing to a global wave of reallocation to safer asset classes. Our results indicate that rising domestic COVID cases had a strong positive effect on portfolio flows, which responded to an increase in financing needs in affected economies. Lockdown and fiscal policy measures also led to an increase in portfolio flows; however, evidence from the CDS market suggests that the increase in flows was dominated by supply forces, reflecting investors' preference for stronger policy responses. In contrast, we find that interest rate cuts led to a decline in portfolio flows as investors searched for higher yield. Finally, we show that COVID policy responses also affected countries' exposure to the global shock and that pre-COVID macroeconomic conditions, such as lower sovereign risk and higher trade openness, contributed to larger flows during the COVID episode.

Do ‘institutional complementarities’ foster female labour force participation?

2015 ◽  
Vol 12 (2) ◽  
pp. 471-497 ◽  
Author(s):  
OLIVIER THÉVENON
Keyword(s):  
Family Policy ◽  
Positive Impact ◽  
Labour Force ◽  
Labour Force Participation ◽  
Female Labour Force Participation ◽  
Female Labour ◽  
Policy Regimes ◽  
Country Level ◽  
Level Data ◽  
Policy Measures

AbstractWe analyse how female labour force participation responds to policies supporting the work-life balance, and do so using country-level data for 18 OECD countries from 1980 to 2007. Included is an original analysis of ‘complementarities’ between different policy measures, as well as of potential variations in their influence across different family policy regimes. The results highlight that expanded childcare service coverage affects women's labour market participation, which is greater in countries where support for working mothers is higher overall. But the influence of each single policy measure varies across regimes. Interactions between policy measures and the context in which they are implemented are important factors to consider since they can, for instance, either foster the positive impact of one measure or lessen the adverse effect of another.

scholarly journals The macroeconomic effects of COVID-19 in Montenegro: a Bayesian VARX approach

2020 ◽  
Vol 6 (1) ◽  
Author(s):  
Gordana Djurovic ◽  
Vasilije Djurovic ◽  
Martin M. Bojaj
Keyword(s):  
Human Capital ◽  
Capital Stock ◽  
Economic Freedom ◽  
Supply And Demand ◽  
Health Expenditures ◽  
Highly Qualified ◽  
Demand And Supply ◽  
Policy Responses ◽  
Out Of Sample ◽  
Policy Measures

Abstract This study examines, diagnoses, and assesses appropriate macroeconomic policy responses of the Montenegrin Government to the outbreak of COVID-19. The model econometrically measures the macroeconomic costs using a Bayesian VARX Litterman/Minessota prior to the pandemic disease in terms of demand and supply loss due to illness and closed activities and their effects on GDP growth in various pandemic scenarios. We explore five economic scenarios—shocks—using the available data from January 2006 to December 2019, following real out-of-sample forecasts generated from January 2020 to December 2020. Sensitivity scenarios spanning January 2020 to June 2020 from ± 10 to ± 60% were analyzed. We observed what happens to the supply and demand sides, namely, GDP, tourism, capital stock, human capital, health expenditures, economic freedom, and unemployment. The results show a toll on the GDP, tourism, unemployment, capital stock, and especially human capital for 2020. The recommended policy measures are public finance spending initiatives focused on securing employment and keeping highly qualified staff in Montenegrin companies. Considering all uncertainties, the rebound of the Montenegrin economy could take a few years to reach pre-COVID 19 output levels.

scholarly journals It Is Not Just Mortality: A Call From Chile for Comprehensive COVID-19 Policy Responses Among Older People

2020 ◽  
Author(s):  
Pablo Villalobos Dintrans ◽  
Jorge Browne ◽  
Ignacio Madero-Cabib
Keyword(s):  
Older People ◽  
National Level ◽  
Health Issues ◽  
Negative Consequences ◽  
Access To Health Services ◽  
Term Care ◽  
Policy Responses ◽  
Level Data ◽  
Definition Of

Abstract Objective Provide a synthesis of the COVID-19 policies targeting older people in Chile, stressing their short- and long-term challenges. Method Critical analysis of the current legal and policy measures, based on national-level data and international experiences. Results Although several policies have been enacted to protect older people from COVID-19, these measures could have important unintended negative consequences in this group’s mental and physical health, as well as financial aspects. Discussion A wider perspective is needed to include a broader definition of health—considering financial scarcity, access to health services, mental health issues, and long-term care—in the policy responses to COVID-19 targeted to older people in Chile.

Financial Access of Latin America and Caribbean Firms: What Are the Roles of Institutional, Financial, and Economic Development?

2021 ◽  
pp. 097265272110153
Author(s):  
Lan Khanh Chu
Keyword(s):  
Economic Development ◽  
Latin America ◽  
Jel Classification ◽  
Caribbean Region ◽  
Country Level ◽  
Level Data ◽  
Latin America And Caribbean ◽  
The Impact ◽  
Moderating Role

This article examines the impact of institutional, financial, and economic development on firms’ access to finance in Latin America and Caribbean region. Based on firm- and country-level data from the World Bank databases, we employ an ordered logit model to understand the direct and moderating role of institutional, financial, and economic development in determining firms’ financial obstacles. The results show that older, larger, facing less competition and regulation burden, foreign owned, and affiliated firms report lower obstacles to finance. Second, better macro-fundamentals help to lessen the level of obstacles substantially. Third, the role of institutions in promoting firms’ inclusive finance is quite different to the role of financial development and economic growth. JEL classification: E02; G10; O16; P48

scholarly journals Information Technology and Productivity: Evidence from Country-Level Data

2000 ◽  
Vol 46 (4) ◽  
pp. 548-562 ◽  
Author(s):  
Sanjeev Dewan ◽  
Kenneth L. Kraemer
Keyword(s):  
Information Technology ◽  
Country Level ◽  
Level Data

Appendix: Country-Level Data

2010 ◽  
pp. 209-240
Author(s):  
Ronald J. Mann
Keyword(s):  
Country Level ◽  
Level Data

scholarly journals The closer to the Europe Union headquarters, the higher risk of COVID-19? Cautions regarding ecological studies of COVID-19

2020 ◽  
Author(s):  
Shuai Li ◽  
Xinyang Hua
Keyword(s):  
European Country ◽  
Ecological Study ◽  
Ecological Fallacy ◽  
Group Level ◽  
Ecological Studies ◽  
Public Concern ◽  
Individual Level ◽  
The Public ◽  
Country Level ◽  
Level Data

AbstractSeveral ecological studies of the coronavirus disease 2019 (COVID-19) have reported correlations between group-level aggregated exposures and COVID-19 outcomes. While some studies might be helpful in generating new hypotheses related to COVID-19, results of such type of studies should be interpreted with cautions. To illustrate how ecological studies and results could be biased, we conducted an ecological study of COVID-19 outcomes and the distance to Brussels using European country-level data. We found that, the distance was negatively correlated with COVID-19 outcomes; every 100 km away from Brussels was associated with approximately 6% to 17% reductions (all P<0.01) in COVID-19 cases and deaths in Europe. Without cautions, such results could be interpreted as the closer to the Europe Union headquarters, the higher risk of COVID-19 in Europe. However, these results are more likely to reflect the differences in the timing of and the responding to the outbreak, etc. between European countries, rather than the ‘effect’ of the distance to Brussels itself. Associations observed at the group level have limitations to reflect individual-level associations – the so-called ecological fallacy. Given the public concern over COVID-19, ecological studies should be conducted and interpreted with great cautions, in case the results would be mistakenly understood.

scholarly journals Competing for Capitals: The Great Fragmentation of the firm and varieties of FDI attraction profiles in the European Union

2018 ◽  
Author(s):  
Arjan Reurink ◽  
Javier Garcia-Bernardo
Keyword(s):  
European Union ◽  
The European Union ◽  
Firm Level ◽  
Holding Companies ◽  
Investment Projects ◽  
Country Level ◽  
Level Data ◽  
Shared Service ◽  
Investment Capital ◽  
Fdi Attraction

Economic globalization has pressured countries to compete with one another for firms’ investment capital. Analyses of such competition draw heavily on foreign direct investment (FDI) statistics. In and of themselves, however, FDI statistics are merely a quantification of the value of firms’ investment projects and tell us little about the heterogeneity of these projects and the distinct patterns of competitive dynamics between countries they generate. Here, we create a more sophisticated understanding of international competition for FDI by pointing out its variegated nature. To do so, we trace the “great fragmentation of the firm” to distinguish between five categories of FDI: manufacturing affiliates, shared service centers, R&amp;D facilities, intermediate holding companies, and top holding companies. Using a novel combination of firm-level and country-level data, we identify for each of these different categories which European Union member states are most successful in attracting it, what macro-institutional and tax arrangements are present in them, and what benefits they receive from it in terms of tax revenues and employment creation. In this way, we are able to identify five distinct “FDI attraction profiles” and show that competition increasingly appears to take place amongst subsets of countries that compete for similar categories of FDI.

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