On the Dynamics of International Real-Estate-Investment Trust-Propagation Mechanisms: Evidence from Time-Varying Return and Volatility Connectedness Measuress

In this paper, we investigate the time-varying interconnectedness of international Real Estate Investment Trusts (REITs) markets using daily REIT prices in twelve major REIT countries since the Global Financial Crisis. We construct dynamic total, net total and net pairwise return and volatility connectedness measures to better understand systemic risk and the transmission of shocks across REIT markets. Our findings show that that REIT market interdependence is dynamic and increases significantly during times of heightened uncertainty, including the COVID-19 pandemic. We also find that the US REIT market along with major European REITs are generally sources of shocks to Asian-Pacific REIT markets. Furthermore, US REITs appear to dominate European REITs. These findings highlight that portfolio diversification opportunities decline during times of market uncertainty.

Intraday Volatility Spillovers among European Financial Markets during COVID-19

During crises, stock market volatility generally rises sharply, and as consequence, spillovers are identified across markets. This study estimates the volatility spillover among twelve European stock markets representing all four regions of Europe. The data consists of 10,990 intraday observations from 2 December 2019 to 29 May 2020. Using the methodology of Diebold and Yilmaz, we use static and rolling windows to characterize five-minute volatility spillovers. Our results show that 77.80% of intraday volatility forecast error variance in twelve European markets comes from spillovers. Furthermore, the highest gross directional volatility spillovers are found in Sweden and the Netherlands, while the minimum spillovers to other stock markets are observed in the stock markets of Poland and Ireland. However, German and Dutch markets transmit the highest net directional volatility spillovers. Splitting the whole sample in pre- and post-pandemic declaration (11 March 2020) we find more stable spillovers in the latter. The findings reveal important information about European stock market interdependence during COVID-19, which will be beneficial to both policy-makers and practitioners.

Overcoming Barriers to Transnational Organizing Through Identity Work: Finnish–Estonian Trade Union Cooperation

This article analyses a project by Finnish and Estonian unions to adopt ‘organizing model’ strategies through establishing the transnational ‘Baltic Organising Academy’. Initially aimed at Estonian workplaces, successful campaigns inspired Finnish unions to copy the model in Finland. This cooperation was originally motivated by labour market interdependence between the two countries, and the failure of past social-partnership oriented union strategies in Estonia. The willingness of Finnish and Estonian unions to commit resources to transnational cooperation around an ‘organizing model’ marks a dramatic departure from the unions’ previous strategies. This change was accomplished by transnational activists who have developed and raised support for the adoption of an ‘organizing model’ in the face of structural challenges and ideological opposition by some union officials. The project’s transnational organizing exemplifies one possible solution to union weakness in Eastern Europe, and underlines the importance of ‘identity work’ in building transnational trade union coalitions around organizing.