39 research outputs found
A multi-criteria decision-making model for evaluating priorities for foreign direct investment
The objective of this study is to evaluate the relative priority of nine developed countries as a home country for foreign direct investment (FDI) from the vantage point of the United States during three time periods: pre-crisis (2004-2006), crisis (2007-2009), and post-crisis (2010-2012). Our study suggests a methodology based on a combination of the analytic hierarchy process (AHP), the technique for order preference by similarity to ideal solution (TOPSIS), and the multi-period multi-attribute decision-making (MP-MADM) technique. To investigate our research question, we selected fifteen robust FDI determinants from recent studies. The results for all three time periods show that productivity, market potential, market size, GDP growth and development have the highest priority in the decision-making process. On the other hand, we found that the 2007 global financial crisis significantly affected each variable in the decision-making process. During the crisis, two variables in particular - corruption and GDP growth - significantly increased in importance. These findings have far-reaching policy implications and can assist policymakers and investors in their strategic decision-making process
Exchange rates and stock markets in emerging economies: new evidence using the Quantile-on-Quantile approach
This study aims to reconsider the relationship between exchange rate and stock market returns for selected emerging countries. The quantile-on-quantile approach is employed to present an inclusive and detailed image of the association between the variables under investigation. This
approach can reveal the heterogeneous and the varying relationship between the variables at different quantiles. The estimation outcome demonstrates that the examined countries’ stock market performances are not affected by the exchange rate changes unless certain market conditions are established. The empirical results suggest that the exchange rate flexibility has a crucial role in determining the market returns depending on the bearish or bullish conditions. Considering the
asymmetric nature of the relationship between the exchange rate and the stock market, presented results can aid governmental authorities and investors to design dynamic economic policies and investment strategies
Time varying interdependency between COVID-19, tourism market, oil prices, and sustainable climate in United States: evidence from advance wavelet coherence approach
This study attempts to empirically estimate the interdependence between COVID-19, tourism market, oil prices, and sustainable climate in United States. In doing so, we employ an advanced Morlet’s wavelet approach, namely, Wavelet coherence transform (WCT), Partial and Multiple Wavelet Coherence and found a strong co-movement between variables, which is varied across the time scales, indicating the initial, peak, and after peak effect of COVID-19 on tourism market, oil prices, and carbon emissions using daily data from 6 March 2020 to 6 August 2020. The visuals of WCT exhibit a cyclic (anti-cyclic) relationship between tourism and oil prices, suggesting a strong positive (negative) co-movement in the shorter and longer (medium) period. Tourism and carbon emissions possess a strong positive co-movement across all periods except in the medium run; however, the intensity of this movement is higher in the very short-run compared to medium and longer-run. The results reveal an anti-cyclic association between COVID-19 and tourism, and COVID-19 is leading tourism with strong negative co-movements. Finally, the results describe that carbon emissions and COVID-19 are anti-cyclical and display a positive causality in the shorter run. These results offer valuable guidelines for all stakeholders. © 2021 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group
Pathway to Achieving Sustainable Food Security in Sub-Saharan Africa: The Role of Agricultural Mechanization
According to the World Health Organization (2020), many parts of the world have demonstrated potentials for acute hunger and famine. Many countries in Sub-Saharan Africa (SSA) actively feature in this category due to geopolitical crises and other humanitarian challenges. Despite efforts by SSA governments, agricultural productivity continues to be inadequate in meeting nutritional needs across Africa. Thus, in the presence of economic expansion, vast land and labour resources, this study investigates the role of mechanization as an important factor for increased agricultural productivity in SSA. Data on 25 SSA countries over 17 years is used. Empirical results from System Generalized Method of Moments show that among other variables, mechanization is a significant factor influencing agricultural productivity. Consequently, in light of the bid for higher agricultural productivity, government investment in mechanization becomes a priority. Also, apart from the fact that many African countries are at the point where more land must be brought under development to satisfy expanded market needs, larger investments in mechanization appear imperative
Analyzing the Role of Government Efficiency on Financial Development for OECD Countries
This paper fulfills a gap in the existing literature by analyzing the impact of government efficiency and corruption on the financial development of 31 OECD countries for the period 2002 to 2015 inclusively. To ensure robustness in our estimations, we employed several econometrics techniques, included control variables in our models, used several proxies for the variables under investigation, split the data into subgroups based on the degree of democracy, and repeated the analysis for these groups. Obtained findings provide strong evidence that government efficiency has a significant effect on financial development, and the sign of all the control variables are compatible with the a-priory theoretical expectations. The results of this study propose several policy recommendations to enhance financial development such as enhancing social cohesion through education on the use of tax contributions, revising budget procedures to ensure efficient spending of resources and to improve institutional quality, and reducing corruptive pursuits by targeting the informal economy activities and modifying the rule of law
Volatility spillovers among leading cryptocurrencies and US energy and technology companies
Abstract This study investigates volatility spillovers and network connectedness among four cryptocurrencies (Bitcoin, Ethereum, Tether, and BNB coin), four energy companies (Exxon Mobil, Chevron, ConocoPhillips, and Nextera Energy), and four mega-technology companies (Apple, Microsoft, Alphabet, and Amazon) in the US. We analyze data for the period November 15, 2017–October 28, 2022 using methodologies in Diebold and Yilmaz (Int J Forecast 28(1):57–66, 2012) and Baruník and Křehlík (J Financ Economet 16(2):271–296 2018). Our analysis shows the COVID-19 pandemic amplified volatility spillovers, thereby intensifying the impact of financial contagion between markets. This finding indicates the impact of the pandemic on the US economy heightened risk transmission across markets. Moreover, we show that Bitcoin, Ethereum, Chevron, ConocoPhilips, Apple, and Microsoft are net volatility transmitters, while Tether, BNB, Exxon Mobil, Nextera Energy, Alphabet, and Amazon are net receivers Our results suggest that short-term volatility spillovers outweigh medium- and long-term spillovers, and that investors should be more concerned about short-term repercussions because they do not have enough time to act quickly to protect themselves from market risks when the US market is affected. Furthermore, in contrast to short-term dynamics, longer term patterns display superior hedging efficiency. The net-pairwise directional spillovers show that Alphabet and Amazon are the highest shock transmitters to other companies. The findings in this study have implications for both investors and policymakers
Military expenditure, financial development and environmental degradation in Turkey: A comparison of CO2 emissions and ecological footprint
This study investigates the long run equilibrium relationship among military expenditure, financial development, energy use, economic growth and environmental degradation in Turkey for the period of 1960–2014. Ecological footprint and carbon dioxide emissions are used as separate proxies for environmental degradation. Fully modified ordinary least squares (FMOLS) estimator results suggest that military expenditure, energy use and economic growth increase the environmental degradation while financial development improves the environmental quality in Turkey. Toda Yamamoto (1995) causality test results reveal that there is a unidirectional causality running from military expenditure to CO2 emissions and ecological footprint; and a bidirectional causality between military expenditure and economic growth. The findings of the study confirm the existence of destruction theory for the case of Turkey