Mean reversion of inflation rates in 19 OECD countries: Evidence from panel Lm unit root tests with structural breaks

The paper applies the recently developed panel LM unit root tests with heterogeneous structural breaks by Im et al., [The Oxford Bulletin of Economics and Statistics, 2005] in order to re-examine the validity of mean reversion in the inflation rates of 19 OECD countries for the time period 1960-2004. Our empirical findings are favorable to the stationarity of the inflation ratesand therefore point to the absence of hyperinflation in the majority of the countries. The results indicate that most shocks to inflation rates are temporary and soon converge when we control for breaks, with the inflation rates showing mean reversion. Overall, some policy implications are obtained in this paper.Inflation

Are Fruit and Vegetable Prices Non-linear Stationary? Evidence from Smooth Transition Autoregressive Models

Over the last decade, there has been a growing interest in investigating agricultural commodity prices. We apply two more powerful smooth transition autoregressive models of the non-linear unit-root test - namely, the ESTAR model of Kapetanios et al. [Journal of Econometrics (2003)] and the LSTAR model of Leybourne, et a . [Journal of Time Series Analysis (1998)] - with a view to investigating non-linear stationarity for the retail prices of 8 major kinds of fruit and 18 major kinds of vegetable in Taiwan. The empirical evidence clearly finds that the Kapetanios et al. model provides solid, substantive evidence in favor of a non-linear mean-reverting adjustment for the individual price of 4 kinds of fruit and 5 kinds of vegetable. However, when we employ the Leybourne et al. model, we find that any such similar evidence of non-linear stationarity is considerably weaker. Finally, compared with the traditional linear unit root tests, it is important to note here that, all in all, the non-linear unit root tests do indeed provide much more evidence of the stationarity, albeit to varying degrees. This paper offers some policy implications.Smooth transition autoregressive model; Non-linear stationary; Fruit price; Vegetable price; Taiwan

THE EFFECT OF INNOVATION STRATEGY ON POST-M&A INNOVATION PERFORMANCE: AN EVIDENCE FROM PHARMACEUTICAL INDUSTRY

M&A is a popular strategy for pharmaceutical industry due to high R&D risk and costs. Prior research related to post-M&A performance mainly focused on the financial and technology resource perspectives. This study aims to provide a new perspective of innovation strategy which is inspired by the research of March (1991), who noted the difference between exploration and exploitation. Moreover, we build the bridge between M&A and innovation strategy by applying the resource-based view theory. We argue that the acquirer’s exploration strategy will negatively influence the post-M&A innovation performance and the innovation strategy similarity between the acquirer and the target is beneficial for future innovation. Furthermore, we hypothesize that there is a negatively moderating effect caused by the acquirer’s exploration strategy on the effect of innovation strategy similarity. On the basis of 89 M&A deals in the pharmaceutical industry, our empirical results suggest two important findings. First, post- M&A innovation performance is influenced by acquirer’s innovation strategy, more specifically, acquirer’s exploration is harmful for post-M&A innovation. Second, the similarity effect is moderated by acquirer’s innovation strategy. Precisely, acquirer’s exploration will diminish the positive effect of similarity

National income and fishery consumption: a global investigation

We apply the panel unit root tests, heterogeneous panel co-integration analysis, and panel-based error correction models (ECM) to examine the long-term co-integrated relationship between national income and fishery consumption in a panel of 101 countries for the period 1970–2006. In addition, we utilise a panel dynamic ordinary least squares (DOLS) model, to assess the effect of national income on fish consumption, and vice versa. Our empirical results provide clear support for a positive long-term co-integrated relationship between national income and fishery consumption after allowing for a heterogeneous country effect. Further, we display a bi-directional causality among these variables via the dynamic panel-based ECM in the long-term, and demonstrate that fish is a common food. Finally, our full sample is divided into developed, developing, southern hemisphere countries (SHC) and northern hemisphere countries (NHC) to discover the broader effect of income on fish consumption if any, and vice versa, among different levels of economic development and diverse regions. This facilitates our understanding and provides more insight into the characteristic of fishery among different levels of economic–geography conditions. We propose fishery policy recommendations through our findings

DO NATURAL DISASTERS INCREASE FINANCIAL RISKS? AN EMPIRICAL ANALYSIS

Using an unbalanced panel data consisting of deaths from natural disasters and five factors of financial risks in 136 countries, this paper analyzes the effect of natural disasters on different financial risks. The conclusions are as follows: (1) natural disasters lead to financial crisis by reducing GDP and trade and increasing domestic and foreign debt; (2) the effects of natural disasters on financial risks are dynamic and long term, with the effect weakening with time; and (3) the negative effects of natural disasters on financial risks in high-income and OECD countries are smaller than those of low-income and non-OECD countries.Using an unbalanced panel data consisting of deaths from natural disasters and five factors of financial risks in 136 countries, this paper analyzes the effect of natural disasters on different financial risks. The conclusions are as follows: (1) natural disasters lead to financial crisis by reducing GDP and trade and increasing domestic and foreign debt; (2) the effects of natural disasters on financial risks are dynamic and long term, with the effect weakening with time; and (3) the negative effects of natural disasters on financial risks in high-income and OECD countries are smaller than those of low-income and non-OECD countries

Jakość środowiska, korupcja i rozwój przemysłu: perspektywa globalna

This paper investigates the causal relationship between environmental quality and corruption for 129 countries, using the panel cointegration and panel-based error correction models for the period 2002-2015. In the paper, we use EPI, EHI, and EVI to represent environmental quality, which are more reasonable and comprehensive. We further take industry growth into consideration and investigate its impact on environmental quality. Our results corroborate that there exists a long-term equilibrium cointegrated relationship among the variables, both of corruption and industry growth have a negative effect on environmental quality and the corruption can seriously decrease environmental quality in the long term, while industry growth weakens environmental quality no matter in the short or long run.W artykule zbadano związek przyczynowy między jakością środowiska a korupcją w 129 krajach, wykorzystując modele kointegracji panelowej i panelowej korekcji błędów za lata 2002-2015. W pracy używamy EPI, EHI i EVI do wyznaczania jakości środowiska, które wydają się najbardziej sensowne i wszechstronne. Ponadto bierzemy pod uwagę rozwój branży i badamy jego wpływ na jakość środowiska. Nasze wyniki potwierdzają, że istnieje długoterminowa stabilna skointegorowana relacja pomiędzy zmiennymi, zarówno korupcja, jak i rozwój przemysłu mają negatywny wpływ na jakość środowiska, a korupcja może poważnie obniżyć jakość środowiska w dłuższej perspektywie, podczas gdy wzrost przemysłu osłabia jakość środowiska zarówno w krótkim, jak i długim okresie

Nuclear localization of orphan receptor protein kinase (Ror1) is mediated through the juxtamembrane domain

<p>Abstract</p> <p>Background</p> <p>Several receptor tyrosine kinases (RTKs) such as EGFR, FGFR, TRK, and VEGFR are capable of localizing in the cell nucleus in addition to their usual plasma membrane localization. Recent reports also demonstrate that nuclear-localized RTKs have important cellular functions such as transcriptional activation. On the basis of preliminary bioinformatic analysis, additional RTKs, including receptor tyrosine kinase-like orphan receptor 1 (Ror1) were predicted to have the potential for nuclear subcellular localization. Ror1 is a receptor protein tyrosine kinase that modulates neurite growth in the central nervous system. Because the nuclear localization capability of the Ror1 cytoplasmic domain has not been reported, we examined the cellular expression distribution of this region.</p> <p>Results</p> <p>The Ror1 cytoplasmic region was amplified and cloned into reporter constructs with fluorescent tags. Following transfection, the nuclear distribution patterns of transiently expressed fusion proteins were observed. Serial deletion constructs were then used to map the juxtamembrane domain of Ror1 (aa_471-513) for this nuclear translocation activity. Further site-directed mutagenesis suggested that a KxxK-16 aa-KxxK sequence at residues 486-509 is responsible for the nuclear translocation interaction. Subsequent immunofluorescence analysis by cotransfection of Ran and Ror1 implied that the nuclear translocation event of Ror1 might be mediated through the Ran pathway.</p> <p>Conclusions</p> <p>We have predicted several RTKs that contain the nuclear localization signals. This is the first report to suggest that the juxtamembrane domain of the Ror1 cytoplasmic region mediates the translocation event. Ran GTPase is also implicated in this event. Our study might be beneficial in future research to understand the Ror1 biological signaling pathway.</p

FINANCIAL STRUCTURE FOUNDATION OF THE URBAN– RURAL INCOME GAP IN CHINA: AN INVESTIGATION FROM THE PERSPECTIVE OF THE DOUBLE DUAL STRUCTURE

This article is an empirical analysis of the relations between financial structure and the urban–rural income gap (URIG) in China’s economic transition, based on the country’s double dual structure. We employ data of 31 provinces in China from 2001 to 2016 to empirically study the influence of financial structure on the URIG. We find an inverted U-shaped relation between financial scale and the URIG, a positive impact of urban and rural financial structure on the URIG, and an inverted U-shaped relation between the mismatch of financial resources and the URIG. These findings show that selection of the optimal proportion of the state-owned economy through ownership reform and the promotion of financial development and optimization of the allocation of financial resources are two effective ways to reduce the URIG.This article is an empirical analysis of the relations between financial structure and the urban–rural income gap (URIG) in China’s economic transition, based on the country’s double dual structure. We employ data of 31 provinces in China from 2001 to 2016 to empirically study the influence of financial structure on the URIG. We find an inverted U-shaped relation between financial scale and the URIG, a positive impact of urban and rural financial structure on the URIG, and an inverted U-shaped relation between the mismatch of financial resources and the URIG. These findings show that selection of the optimal proportion of the state-owned economy through ownership reform and the promotion of financial development and optimization of the allocation of financial resources are two effective ways to reduce the URIG