Modeling Country-Specific Risks in Foreign investment Using an Expert-Driven System

Assuming that regulatory obstacles such as capital controls, breach of contract, and other market imperfections are still predominant even in today’s increasingly integrated financial markets, this study demonstrates application of the analytic hierarchy process (AHP) to effectively assess country-specific risks to cross-border investments. The AHP is an expert-driven system that has been applied to numerous fields but has yet to be applied to the assessment and management of country-risk exposure. This study shows that it is also capable of selecting an optimal host country (OHC) for a foreign investment, herein a national market where country-specific risks are least likely to adversely affect its return.

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Research on Risk Measurement of Supply Chain Emergencies in International Capacity Cooperation

Sustainability ◽

10.3390/su11195184 ◽

2019 ◽

Vol 11 (19) ◽

pp. 5184

Author(s):

Bo-Rui Yan ◽

Qian-Li Dong ◽

Qian Li

Keyword(s):

Supply Chain ◽

Financial Risk ◽

Fuzzy Ahp ◽

Risk Index ◽

Risk Measurement ◽

Country Risk ◽

Analytic Hierarchy ◽

Analytic Hierarchy Process Method ◽

Measurement Index System ◽

Hierarchy Process

International capacity cooperation is easily affected by the interweaving of its internal and external environment. As the risk accumulation exceeds the threshold, a supply chain crisis and even emergency will occur and serious losses will be caused. Regarding multinational operation and international capacity cooperation, 208 cases were summarized to identify risk types and high-incidence areas, and a risk measurement index system was established. A Fuzzy AHP (Analytic Hierarchy Process) method was used to evaluate the importance of each risk index. It was found that country risk was the main cause of supply chain emergencies in international capacity cooperation. Construction, water and electricity supply, mining and manufacturing were major areas of emergencies. In international capacity cooperation, country risk and cross-cultural risk were more important in external risks, while in internal risk, financial risk and decision risk were more important.

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Criteria of Optimal Portfolio Selection: Evidence From Private Investors in Greece, Turkey, Italy

International Journal of Accounting and Financial Reporting ◽

10.5296/ijafr.v8i2.13229 ◽

2018 ◽

Vol 8 (2) ◽

pp. 258

Author(s):

Mihail N Diakomihalis ◽

Katerina A Parra ◽

Assunta Di Vaio ◽

Derya Atlay Isik

Keyword(s):

Analytic Hierarchy ◽

Developed Country ◽

Financial Investment ◽

Long Time ◽

Optimal Portfolio Selection ◽

Private Investors ◽

Investment Portfolios ◽

Hierarchy Process ◽

Selection Of ◽

Country Specific

What are the criteria for private investors when they decide to invest their savings in to different investment products? Do these criteria differ between investors from different countries? We are investigating the investment portfolios determinants between private investors from Greece, Turkey and Italy. The study is grounded in the current and potential criteria and sub-criteria influencing investors in selecting financial investment products. The methodology applied in order to satisfy the research aims is the Analytic Hierarchy Process (AHP). The results show that there are considerable differences in the ranking and significance of factors that determine the selection of financial investment products in these three countries. We conclude that differences in the ranking and significance are related to country-specific rather than investor factors and they are justified by the differences of the three countries, one of which is a member of the Eurozone facing a long time of economic crisis, another a candidate EU member, with unforeseeable political system which influences the economic environment as well, and one is highly developed country which belongs to G20.

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Ranking of Indicators for Estimation of Plant Efficiency in Hydropower Plants by a Bootstrap MCDM Approach

International Journal of Energy Optimization and Engineering ◽

10.4018/ijeoe.2019070104 ◽

2019 ◽

Vol 8 (3) ◽

pp. 69-92

Author(s):

Priyanka Majumder ◽

Apu Kumar Saha

Keyword(s):

Financial Markets ◽

Energy Requirements ◽

Hybrid Technique ◽

Analytic Hierarchy ◽

Statistical Process ◽

Hydropower Plants ◽

Hierarchy Process ◽

Plant Efficiency ◽

Pressure Driven

The overall commitment of hydropower plants (HPP) in providing the interest for power is 1106 TWh. The issue with hydropower lies with the way that its proficiency relies upon numerous indicators which are elements of climatic, pressure driven and financial markets. Every one of these indicators again rely on pressure driven misfortune forced because of the time being used, change in energy requirements, locational interference and quality of the machine installed. As there are numerous indicators having diverse levels of impact on the execution productivity of HPP, a few indicators are exaggerated and some others stay under appraised which brings about incorrect basic leadership. The present study proposes another cross breed show in view of the Decision-Making Trial and Evaluation Laboratory (DEMATEL) with the Analytic Hierarchy Process (AHP). Also in the present investigation rank of each indicator determine by Statistical Process Control (SPC). The needs are dictated by hybrid technique in particular SPC-DEMATEL-AHP. As per the outcomes, effectiveness of turbine is the most noteworthy for impacting general productivity of HPP.

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Fiscal Unions

The American Economic Review ◽

10.1257/aer.20130817 ◽

2017 ◽

Vol 107 (12) ◽

pp. 3788-3834 ◽

Cited By ~ 43

Author(s):

Emmanuel Farhi ◽

Iván Werning

Keyword(s):

Financial Markets ◽

Open Economy ◽

Risk Sharing ◽

Capital Controls ◽

Currency Union ◽

Country Risk ◽

Currency Unions ◽

Fiscal Union ◽

Cross Country ◽

Optimal Risk Sharing

We study cross-country risk sharing as a second-best problem for members of a currency union using an open economy model with nominal rigidities and provide two key results. First, we show that if financial markets are incomplete, the value of gaining access to any given level of aggregate risk sharing is greater for countries that are members of a currency union. Second, we show that even if financial markets are complete, privately optimal risk sharing is constrained inefficient. A role emerges for government intervention in risk sharing both to guarantee its existence and to influence its operation. The constrained efficient risk-sharing arrangement can be implemented by contingent transfers within a fiscal union. We find that the benefits of such a fiscal union are larger, the more asymmetric the shocks affecting the members of the currency union, the more persistent these shocks, and the less open the member economies. Finally, we compare the performance of fiscal unions and of other macroeconomic stabilization instruments available in currency unions such as capital controls, government spending, fiscal deficits, and redistribution. (JEL E62, F31, F32, F41, F45)

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