Cross-country heterogeneity and the trade-income relationship

This paper makes the following contributions to the literature on the impact of trade on income. First, we use heterogeneous panel cointegration techniques that are robust to omitted variables and endogenous regressors to estimate the effect of trade on income for 75 developed and developing countries, both for the sample, as a whole, and for each individual country. Second, we use a general-to-specific variable-selection approach to identify important determinants of the effect of trade on income. Our main findings are: (i) A one-percent increase in the trade share of GDP results, on average, in a statistically significant increase in income per worker of about 0.18 percent. This result is in contrast to previous studies, which tend to produce either unreasonably large or statistically insignificant estimates of the impact of trade on income. (ii) There are large cross-country differences in the income effect of trade, in particular, between developed and developing countries. For developed countries the income effect of trade is positive, whereas trade has, on average, a negative impact on income in developing countries. (iii) The cross-country heterogeneity in the impact of trade on income can be explained mainly by cross-country differences in primary export dependence, labor market regulation, and property rights protection. The level of property rights protection is positively related, while the levels of primary export dependence and labor market regulation are negatively related to the income effect of trade.Trade; Income; Cross-country heterogeneity; Panel cointegration; General-to-specific approach

Untangling hotel industry’s inefficiency: An SFA approach applied to a renowned Portuguese hotel chain

The present paper explores the technical efficiency of four hotels from Teixeira Duarte Group - a renowned Portuguese hotel chain. An efficiency ranking is established from these four hotel units located in Portugal using Stochastic Frontier Analysis. This methodology allows to discriminate between measurement error and systematic inefficiencies in the estimation process enabling to investigate the main inefficiency causes. Several suggestions concerning efficiency improvement are undertaken for each hotel studied.info:eu-repo/semantics/publishedVersio

Exchange Rate Regimes and the Real Sector: a Sectoral Analysis of CEE Countries

This paper analyses the impact of exchange rate regimes on the real sector. While most studies in this field have so far concentrated on aggregate variables, we pursue a sectoral approach distinguishing between the tradable and nontradable sectors. Firstly, we present a survey of the relevant theoretical and empirical literature. This demonstrates that evaluations of exchange rate regimes and their impact on the real economy are largely dependant on specific assumptions concerning, in particular, the parameters of a utility function, the nature of the price adjustment process and the characteristics of analysed shocks. Secondly, we conduct an empirical analysis of the behaviour of the tradable and nontradable sectors under different exchange rate regimes for seven Central and Eastern European countries. We find no firm evidence of a differential impact of given exchange rate regimes on the dynamics of output and prices in the two sectors. We proffer a conceptual and technical interpretation of this.exchange rate regimes, Central and Eastern European countries, dynamic panels

An Empirical Analysis of the Forecast of Corporate Financial Distress in the European Energy Sector

openExploring the causes of corporate financial distress has been a topic of extensive discussion and research in the field of finance. Over the years, scholars and experts have dedicated their efforts to unraveling the intricacies behind financial struggles faced by businesses. The enduring interest in this subject can be attributed to the profound consequences that corporate financial distress can bring. When a company finds itself in a state of financial distress, it often marks a critical turning point that could lead to insolvency or even bankruptcy. This represents the ultimate failure of the company and has wide-ranging impacts that go beyond its immediate boundaries. Employees are affected by potential job losses, stakeholders face financial losses, connected companies may experience disruptions in their operations, and the overall economy can suffer. The costs associated with corporate financial distress are substantial and can take different forms. Direct costs include expenses related to legal proceedings, asset liquidation, and settling outstanding debts. Indirect costs can arise from the erosion of the company's reputation, diminished investor confidence, restricted access to credit, and the ripple effect felt throughout the supply chain. Given the prevalence and far-reaching consequences of corporate financial distress, researchers and experts have delved into the topic with great fervor. Their aim is to develop models, methodologies, and strategies that can help identify early warning signs of financial distress and enable proactive measures to be taken. By doing so, they seek to protect companies from the brink of failure and promote stability and growth in the broader economy. The study of corporate financial distress has yielded valuable insights into the various factors that contribute to these challenges. Researchers have examined aspects such as poor financial management practices, ineffective governance structures, unfavorable economic conditions, industry-specific challenges, and vulnerabilities unique to individual companies. Ultimately, the research conducted in this field not only sheds light on the causes and consequences of corporate financial distress but also strives to provide guidance for companies, investors, and policymakers. By understanding the dynamics of financial distress, stakeholders can make informed decisions, implement preventive measures, and contribute to the resilience and success of businesses in the face of adversity.Exploring the causes of corporate financial distress has been a topic of extensive discussion and research in the field of finance. Over the years, scholars and experts have dedicated their efforts to unraveling the intricacies behind financial struggles faced by businesses. The enduring interest in this subject can be attributed to the profound consequences that corporate financial distress can bring. When a company finds itself in a state of financial distress, it often marks a critical turning point that could lead to insolvency or even bankruptcy. This represents the ultimate failure of the company and has wide-ranging impacts that go beyond its immediate boundaries. Employees are affected by potential job losses, stakeholders face financial losses, connected companies may experience disruptions in their operations, and the overall economy can suffer. The costs associated with corporate financial distress are substantial and can take different forms. Direct costs include expenses related to legal proceedings, asset liquidation, and settling outstanding debts. Indirect costs can arise from the erosion of the company's reputation, diminished investor confidence, restricted access to credit, and the ripple effect felt throughout the supply chain. Given the prevalence and far-reaching consequences of corporate financial distress, researchers and experts have delved into the topic with great fervor. Their aim is to develop models, methodologies, and strategies that can help identify early warning signs of financial distress and enable proactive measures to be taken. By doing so, they seek to protect companies from the brink of failure and promote stability and growth in the broader economy. The study of corporate financial distress has yielded valuable insights into the various factors that contribute to these challenges. Researchers have examined aspects such as poor financial management practices, ineffective governance structures, unfavorable economic conditions, industry-specific challenges, and vulnerabilities unique to individual companies. Ultimately, the research conducted in this field not only sheds light on the causes and consequences of corporate financial distress but also strives to provide guidance for companies, investors, and policymakers. By understanding the dynamics of financial distress, stakeholders can make informed decisions, implement preventive measures, and contribute to the resilience and success of businesses in the face of adversity

Attitudes towards old age and age of retirement across the world: findings from the future of retirement survey

The 21st century has been described as the first era in human history when the world will no longer be young and there will be drastic changes in many aspects of our lives including socio-demographics, financial and attitudes towards the old age and retirement. This talk will introduce briefly about the Global Ageing Survey (GLAS) 2004 and 2005 which is also popularly known as “The Future of Retirement”. These surveys provide us a unique data source collected in 21 countries and territories that allow researchers for better understanding the individual as well as societal changes as we age with regard to savings, retirement and healthcare. In 2004, approximately 10,000 people aged 18+ were surveyed in nine counties and one territory (Brazil, Canada, China, France, Hong Kong, India, Japan, Mexico, UK and USA). In 2005, the number was increased to twenty-one by adding Egypt, Germany, Indonesia, Malaysia, Poland, Russia, Saudi Arabia, Singapore, Sweden, Turkey and South Korea). Moreover, an additional 6320 private sector employers was surveyed in 2005, some 300 in each country with a view to elucidating the attitudes of employers to issues relating to older workers. The paper aims to examine the attitudes towards the old age and retirement across the world and will indicate some policy implications

European Integration, Productivity Growth and Real Convergence

This paper derives a stochastic endogenous growth model that investigates the impact of European Union integration on convergence and productivity growth. We deviate from the general strand of literature by not only deriving a theoretical model for the effects of integration on the rate of economic growth, but also by using more appropriate estimation techniques. The outcome of a series of panel and structural break tests examining the accession process of five recent members to the Union generally show improved rates of productivity growth and convergence to EU standards. We then draw from the experience of these recent members to derive implications for the first-round EU candidate countries. Subsequent tests on the first-round candidate countries find a high level of heterogeneity in growth rates, and a fast-paced convergence to EU standards.http://deepblue.lib.umich.edu/bitstream/2027.42/40043/3/wp657.pd

Nonparametric efficiency and productivity change measurement of banks with corporate social responsibilities : the case for Ghana

This thesis has twofold objectives. The first is to develop a framework based on the existing theory and method of Data Envelopment Analysis (DEA) for measuring performance of financial firms that have the dual goals of profit maximisation and Corporate Social Responsibilities (CSRs). The second is to examine the impact of banking regulatory reforms including bank ownership, specialisation, and capitalisation types on the average efficiency and frontier differences of banking subgroups. The objectives are achieved using the standard DEA, the metafrontier analysis and the global frontier differences (GFD). DEA can handle multidimensional inputs and outputs without specifying specific functional forms. CSR is conceptually justified and modelled as an additional output into the banking intermediation approach. Two DEA models, one with CSR and another without CSR are measured and compared. Parametric and nonparametric tests and regressions are utilised to support, empirically, the relevance of CSR in bank performance evaluation. Do foreign banks outperform private-domestic and state banks? Should banks diversify their products or focus in narrow range of products and services? Are listed banks more efficient than non-listed banks? The second part of the thesis contributes to the extant literature by answering these questions using the metafrontier analysis and the GFD to provide new evidence on the effect that the entry of foreign and private-domestic banks, universal banking and listing of banks on the stock market, have on bank performance. Banks are segmented into groups based on their bank-specific attributes and their average efficiencies and bestpractice differences compared. Relevant policy recommendations are drawn from the analysis for both the banking regulator and bank management. The final methodological contribution extends the GFD by defining a further decomposition of the global frontier shift, into components that indicate whether an observation is situated in a more or less favourable location in the production possibility set. Consequently, a four-factor “Newly-decomposed Malmquist productivity change index” is proposed. The index and its decompositions have potentially interesting policy implications, which are illustrated using the empirical data on Ghanaian banks. The index is in the spirit of the standard Malmquist index but the intuition is that some components can be used to draw conclusions about productivity changes for a whole population of firms whilst others determine whether individual firms are in favourable locations and/or moving towards locations that are more favourable over time. More importantly, arguably, a listed, universal or foreign bank can be located in a favourable position and move towards location that is more favourable by virtue of its bank-specific attributes or by contributing more towards CSR. These factors are explored and policy measures prescribed in the final contribution of the thesis