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How do foreign-owned suppliers affect economic performance? Evidence from Italian manufacturing firms International Economics Pub Date : 2024-03-08 Michele Imbruno, Rosanna Pittiglio, Filippo Reganati
This paper examines how the presence of foreign-owned suppliers (Inward FDI in intermediate good sectors, called input IFDI) affects both the productivity and outward FDI propensity of domestic firms. Using data from Italian manufacturing firms over the period 2005–2012, we find that the degree of a firm's involvement in innovation activities is crucial. More specifically, input IFDI, on average, boosts
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Assessing the role of non-price factors: Shedding new light on the European competitiveness puzzle International Economics Pub Date : 2024-03-05 S, a, s, c, h, a, , K, e, i, l
Identifying major driving factors of a country's export performance is challenging. In particular, existing empirical evidence on the role of non-price competitiveness (NPC) remains inconclusive and fragmented. This study aims to address this issue by examining the consistency and validity of NPC's established empirical measures within a European context. I employ both indirect NPC approaches and proxy
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Statistical omissions as the stabilizing factor of net foreign assets in EU countries International Economics Pub Date : 2024-03-04 M, a, r, i, a, , S, i, r, a, n, o, v, a
In this paper, we investigate the effect of balance of payments statistical leakages (Net errors and omissions) on the external solvency of net foreign asset positions in the EU28 sample over the period 1995–2019. The Bohn (2007) error-correction reaction function approach adapted to a dynamic panel framework (pooled mean group estimator) yields evidence of a substantial improvement in the sustainability
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The firm-level costs of utilizing free trade agreements International Economics Pub Date : 2024-02-27 Stefan Legge, Piotr Lukaszuk
The number of free trade agreements (FTAs) has surged in recent years. In order to benefit from lower import duties, firms must apply for preferential customs treatment and comply with rules of origin requirements. This is costly and explains why preference utilization rates are typically far below 100 percent. Analyzing Switzerland’s wide FTA network based on a novel data set on all import transactions
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Global value chains participation and gender inequalities in Sub-Saharan Africa: Importance of women education International Economics Pub Date : 2024-02-27 Hodabalo Bataka
In the current climate of international trade paradigm changing, this paper empirically investigates the effects of global value chains (GVCs) participation on gender inequalities in sub-Saharan Africa (SSA) from 1990 to 2015. The study also highlights the role of women's education in the relationship between GVC participation and gender inequalities. The static panel model specification, followed
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Drivers of fiscal sustainability: A time-varying analysis for Portugal International Economics Pub Date : 2024-02-24 António Afonso, José Carlos Coelho
We assess the drivers of fiscal sustainability in Portugal during the period 1999Q4-2021Q4. We resort to expanding window and Schlicht (2003, 2021)'s time-varying approaches to construct the responses of government revenues to government expenditures and the responses of the primary government balance and the cyclically adjusted primary government balance (CAPB) to the debt-to-GDP ratio. Our results
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An economic policy uncertainty index for Portugal International Economics Pub Date : 2024-02-17 Hugo Morão
This paper investigates the effects of policy uncertainty on major macroeconomic variables in Portugal, employing a Structural Vector Autoregression (SVAR) approach. I develop an Economic Policy Uncertainty (EPU) index utilizing data from over twenty news sources, which captures key moments such as elections, budget negotiations, and various crises. In response to a rise in policy uncertainty, firms
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Impacts of remittances from internal and international migrants on poverty and inequality in Mali International Economics Pub Date : 2024-02-14 Issiaka Coulibaly, Moustapha Dembélé
This paper aims at assessing the impact of remittances from internal and international migrants on the level of poverty and inequality in Mali. The estimation results show that, at the national level, international remittances and their combination with internal remittances are associated with a decline in all poverty indicators (incidence, depth, and severity of poverty) in contrast with internal
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The impact of institutions on economic growth: Evidence for advanced economies and Latin America and the Caribbean using a panel VAR approach International Economics Pub Date : 2024-02-09 Sivanildo Jose de Almeida, Fernanda Esperidiao, Fabio Rodrigues de Moura
This study aims to empirically investigate the impact of institutions on economic growth in advanced economies and in the Latin American and Caribbean region. We use a Panel VAR (PVAR) model for 42 countries between 1970 and 2019 and estimate orthogonalized impulse-response functions to assess the impact of political and economic institutions on the growth rate of GDP per capita. Subsequently, we control
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Is gold a safe haven for the U.S. dollar during extreme conditions? International Economics Pub Date : 2024-01-12 A, s, i, l, , A, z, i, m, l, i
This paper examines whether gold can act as a hedge/safe-haven asset for the U.S. dollar exchange rate risk against a broad range of currencies. Findings imply the important exchange rate hedging role of gold. Moreover, gold acts as a safe-haven asset during the COVID-19 pandemic and the Russia-Ukraine war for some exchange rate pairs examined. Analysis of gold-currency portfolios reveals that including
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Frequency interdependence and portfolio management between gold, oil and sustainability stock markets International Economics Pub Date : 2023-12-14 Ramzi Nekhili, Salem Adel Ziadat, Walid Mensi
This paper examines the dynamic correlation relationship between Dow Jones sustainability indices with oil and gold in the time and frequency domain. Our empirical analysis discloses multiple imperative findings. First, the period of high dependence between oil and these DJSI assets seems to be restricted to only at higher frequency (128–256 days). As such, DJSI Europe, US, Asia-pacific, and Korea
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Corrigendum to ‘Frequency interdependence and portfolio management between gold, oil and sustainability stock markets’ [International Economics 176, December 2023, 100461] International Economics Pub Date : 2023-12-14 Ramzi Nekhili, Salem Adel Ziadat, Walid Mensi
Abstract not available
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The dynamic effects of public investments on private capital formation: Modelling a heterogeneous asymmetric cointegration with unobserved global factors International Economics Pub Date : 2023-12-06 G, i, a, n, n, i, , C, a, r, v, e, l, l, i
Using quarterly data on a panel of 14 OECD economies over 1960–2023, we model heterogeneously the nexus between public investments and private capital formation, allowing for asymmetric cointegration, fiscal feedback and addressing cross-sectional dependence. We find that: ) public investments crowd-in private investments in the short- and the long-run; ) the private sector responds asymmetrically
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Talents from abroad. Foreign managers and productivity in the United Kingdom International Economics Pub Date : 2023-11-28 Dimitrios Exadaktylos, Massimo Riccaboni, Armando Rungi
In this paper, we test the contribution of foreign management to firm productivity. We use a novel data set on the careers of 115,505 managers employed in 10,238 firms in the UK from 2009–2017. We find that domestic manufacturing firms become, on average, 4.9% more productive and about 23.3% more capital intensive after hiring foreign managers. In particular, we find that prior industry-specific experience
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A multifractal detrended fluctuation analysis of Islamic and conventional financial markets efficiency during the COVID-19 pandemic International Economics Pub Date : 2023-11-15 Syed Ali Raza, Nida Shah, Muhammed Tahir Suleman
This paper examines the efficiency of DJIM conventional and Islamic sectoral stock markets before and during the Covid-19 period. The study uses both sectoral stock markets' daily data from January 1, 2010, to August 1, 2022, and relies on the multifractal detrended fluctuation analysis (MF-DFA). Firstly, we find that the conventional and Islamic sectoral stock markets are multifractal in the short
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Frequency interdependence and portfolio management between gold, oil and sustainability stock markets International Economics Pub Date : 2023-10-23 Ramzi Nekhili, Salem Adel Ziadat, Walid Mensi
This paper examines the dynamic correlation relationship between Dow Jones sustainability indices (DJSI) with oil and gold in the time and frequency domain. Our empirical analysis discloses multiple imperative findings. First, the period of high dependence between oil and these DJSI assets seems to be restricted to only at higher frequency (128–256 days). As such, DJSI Europe, US, Asia-pacific, and
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The fiscal multiplier when debt is denominated in foreign currency International Economics Pub Date : 2023-10-17 Marie-Pierre Hory, Grégory Levieuge, Daria Onori
In this paper, we show that the proportion of private debt denominated in foreign currency can be a determinant of the size of the domestic fiscal multiplier. The demonstration relies on a two-country New Keynesian DSGE model with nominal rigidities and financial frictions. In line with recent evidence, the model can reproduce the depreciation of the domestic currency following an increase in public
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Services in the India-EU free trade agreement International Economics Pub Date : 2023-10-16 Hildegunn Kyvik Nordås
This paper analyses the proposed free trade agreement (FTA) between EU and India focusing on services trade. Based on the text published by the European Union, it uses the OECD STRI simulator to calculate the preference margins implied by the agreement and next predicts the impact on services trade flows using a general equilibrium structural gravity analysis. I find that the preference margin on the
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Hydrogen development in Europe: Estimating material consumption in net zero emissions scenarios International Economics Pub Date : 2023-10-08 Gondia Sokhna Seck, Emmanuel Hache, Vincent D'Herbemont, Mathis Guyot, Louis-Marie Malbec
Low-carbon hydrogen has already been announced by many countries as one of their priorities for achieving carbon neutrality by 2050. In Europe, particularly, a political momentum for hydrogen use has strengthened in recent years. This potential for massive development of low-carbon hydrogen technologies in the coming decades raises questions about the world's future dependence on mineral resources
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The information content of sentiment indices in forecasting Value at Risk and Expected Shortfall: a Complete Realized Exponential GARCH-X approach International Economics Pub Date : 2023-10-11 Antonio Naimoli
The aim of this paper is to investigate the impact of public sentiment on tail risk forecasting. In this framework, we extend the Realized Exponential GARCH model to directly incorporate information from realized volatility measures and exogenous variables, thus resulting in a novel dynamically complete specification denoted as the Complete REGARCH-X model. Several sentiment indices related to social
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The effect of technological intensity on international trade International Economics Pub Date : 2023-10-04 Tingting Xiong
This paper aims to show the impact of technological intensity (R&D intensity) on trade. Using a detailed product-level dataset of 118 countries from 1988 to 2006 and the Poisson pseudo-maximum-likelihood (PPML) estimator, this paper provides robust evidence that technological intensity promotes exports mainly through increasing the variety of exports. More specifically, a 1-percentage point increase
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Wholesale price rigidities and exchange rate pass-through: Evidence from daily data of agricultural products International Economics Pub Date : 2023-08-31 Héctor M. Núñez, Jesús Otero, Andrés Trujillo-Barrera
We provide insights into the extent of rigidities and the exchange rate pass-through (ERPT) of wholesale food prices at the regional level in a small open emerging economy. Notably, we utilize a novel and extensive micro-database of wholesale prices in markets within the principal and intermediate Colombian cities. The granularity of the data provides the advantage of assessing whether temporal and
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Erratum regarding missing Declaration of Competing Interest statements in previously published articles International Economics Pub Date : 2023-08-24
Abstract not available
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Erratum regarding missing Declaration of Competing Interest statements in previously published articles International Economics Pub Date : 2023-08-22
Abstract not available
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Financial development, diversity, and economic stability: Micro and systemic evidence International Economics Pub Date : 2023-08-09 Beniamino Pisicoli
In this “Data, Tools and Replication” paper we adapt the complexity algorithm by Hidalgo and Hausmann (2009) to the financial sector and compute a measure of financial development that is intrinsically linked to its diversity dimension. We then test the impact of financial development on financial stability, economic resilience and growth, focusing on Italy. By employing an index that levers on the
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Recent advances in international macroeconomics, financial development and globalization: Some policy challenges International Economics Pub Date : 2023-07-13
Abstract not available
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Time–frequency dependence and connectedness between financial technology and green assets International Economics Pub Date : 2023-07-12
This paper provides new evidence on the dynamic dependence and connectedness between investments in Financial Technology (FinTech) and green assets across different market conditions and investment horizons. The paper uses daily data and relies on wavelets coherency and quantile-based connectedness methods. First, our results indicate that the co-movement between FinTech and green bonds and clean energy
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Exchange-rate policy, institutions and wages: A macroeconomic quasi-experiment from Italy, 1997–2000 International Economics Pub Date : 2023-07-08 Corrado Andini
This paper performs a macroeconomic quasi-experiment with individual data to study how the fixed exchange-rate policy implemented in Italy between 1997 and 2000, by itself or in combination with the institutional setting, affected the growth rate of real wages among resident workers. Accounting for both observed and unobserved individual characteristics through the Difference-in-Differences estimator
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Cultural proximity and global value chains International Economics Pub Date : 2023-06-30 Ngoc Thang Doan
This paper investigates the effects of cultural proximity on countries’ participation in global value chains (GVCs) using a large country-pair dataset with 60,910 observations from 1996 to 2018. GVC participation is defined as the value-added embedded in exports, looking both backward and forward from a reference nation. Trade in cultural goods is used as a proxy for time-varying and asymmetric dimensions
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Gender, firm performance, and FDI supply–purchase spillovers in emerging markets International Economics Pub Date : 2023-06-16 Ioannis Bournakis, Jen-Chung Mei
The paper measures the gender premium (or penalty) in productivity and innovation of firms in 32 emerging economies. We estimate whether the gender status of firms’ ownership in FDI recipient countries matters for the size of knowledge spillovers from linkages between local firms and Multinational Enterprises (MNEs). Furthermore, we explore whether the gender ownership structure of MNEs is also vital
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Comparative advantages in the digital era–A Heckscher-Ohlin-Vanek approach International Economics Pub Date : 2023-06-14 Roman Stöllinger, Dario Guarascio
This paper revisits the Heckscher-Ohlin-Vanek (HOV) theorem and investigates its fit for digital tasks and ICT capital, which both represent endowment factors that are expected to shape the digital transformation. We use a theory-consistent methodology for calculating the measured net factor content of trade and apply it to a unique dataset on digital and non-digital tasks performed in detailed occupations
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Competition and banking efficiency in the WAEMU: The role of multinationals and institutions International Economics Pub Date : 2023-06-12 Richard Kuessi, N'Yilimon Nantob, Segnon Aguey, Mawuli Kodjovi Couchoro
This paper analyzes the effect of competition on bank efficiency in the WAEMU, taking into account the role of multinational banks and institutional quality, using data on 141 banks from 2000 to 2019. Using Lerner then Boone indices as a proxy for competition, we apply the One-step procedure, then the 2SLS-IV to control for endogeneity, the Tobit to control for the censored dependent variable, and
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Economic diversification in Saudi Arabia: Comparing the impact of oil prices, geopolitical risk, and government expenditures International Economics Pub Date : 2023-06-03 Osama D. Sweidan, Khadiga Elbargathi
Our paper examines and compares the influence of oil prices, international geopolitical risks, and government expenditures on Saudi Arabia's economic diversification during 1970–2020. We employ the bounds testing approach to cointegration to estimate the parameters of the Autoregressive Distributed Lag model to attain the paper's goal. Our results show that oil prices and international geopolitical
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Fiscal outcomes, current account imbalances, and institutions in Europe: Exploring nonlinearities International Economics Pub Date : 2023-05-29 Kady Keita, Isabelle Rabaud, Camelia Turcu
We analyze the fiscal outcomes associated to the current account imbalances within Europe. We hypothesize that the effects of current account imbalances on fiscal variables within the European Union are nonlinear and that the nonlinearity is modulated by the quality of governance. We use data on 28 European Union countries from 2000 to 2019, apply a Panel Smooth Transition Regression (PSTR) approach
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Trade decoupling from Russia International Economics Pub Date : 2023-05-27 Alessandro Borin, Francesco Paolo Conteduca, Enrica Di Stefano, Vanessa Gunnella, Michele Mancini, Ludovic Panon
We use a general equilibrium trade model to quantify the welfare cost of decoupling from Russia. We find that a doubling of non-tariff barriers imposed by the West on Russian imports and exports of all goods would decrease Russian welfare by 4.8% and would have a relatively small effect on Western welfare. We show that the welfare cost of decoupling is amplified by supply chains and that restrictions
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Brexit and Canadadvent: An application of graphs and hypergraphs to recent international trade agreements International Economics Pub Date : 2023-05-09 Michela Chessa, Arnaud Persenda, Dominique Torre
This paper uses a network approach to study the relationship between trade agreements and trade flows. For the first time in the literature, hypergraphs are used to capture the topology of trade agreements, while the usual graphs are used to represent trade flows. For our analysis, we focused on a snapshot of data from July 2017, before CETA as an agreement in force only in September 2017. An analysis
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Real exchange rate dynamics in the New-Keynesian model International Economics Pub Date : 2023-05-04 Hayk Kamalyan
This paper studies the real exchange rate adjustment process in the baseline small open economy New-Keynesian framework. The paper shows that i) the version of the model with real shocks replicates the persistence and the hump-shaped dynamics of the real exchange rate observed in the data, and ii) the model cannot simultaneously match the observed dynamics of the real exchange rate and the close co-movement
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The impact of the war in Ukraine on energy prices: Consequences for firms’ financial performance International Economics Pub Date : 2023-05-02 Fabrizio Ferriani, Andrea Gazzani
We analyze the impact of the shock to energy prices induced by the war in Ukraine on the financial performance of the major European firms listed in the Eurostoxx 600 index. We find that equity returns (CDS spreads) decreased (increased) more substantially for firms characterized by high energy intensity and carbon emission intensity. We then present a method, based on a VAR model, to produce forecasts
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The impact of exchange rates on Turkish imports and exports International Economics Pub Date : 2023-04-26 Willem Thorbecke, Ahmet Sengonul
The Turkish lira has depreciated by 200% between 2012 and 2022. We investigate how exchange rates affect Turkish imports and exports. Nonlinear autoregressive distributed lag results indicate that appreciations during appreciation episodes increase imports and exports but exchange rate changes during depreciation periods frequently do not affect trade. These responses are inconsistent with the predictions
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The strategic proximity-concentration trade-off with multiproduct multinational firms International Economics Pub Date : 2023-04-17 Gaetano Alfredo Minerva
I study the proximity-concentration trade-off faced by two multiproduct multinational companies (MNCs) that operate in two countries under horizontal product differentiation. In this context, characterized by two-way trade and foreign direct investment, the trade-off regulates the domestic stock of investment (concentration) against the foreign stock (proximity) in a way that is centred around the
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New protectionist policies, intellectual property rights, and the organization of firms International Economics Pub Date : 2023-04-13 Olena Ivus, Alireza Naghavi
Abstract not available
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Assessing the role of globalization for universal electricity access International Economics Pub Date : 2023-04-06 Issidor Noumba, Stéphane Mbiankeu Nguea
Using the electricity access rate to measure progress towards the Sustainable Development Goal target for universal access to electricity by 2030, about 580 Millions African people lack electricity access. However, globalization offers technological innovation, financial resources and international cooperation opportunities to achieve universal electricity access. This paper investigates whether increasing
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Institutional Quality and Financial Development in Resource-Rich Countries: A Nonlinear Panel Data Approach International Economics Pub Date : 2023-04-03 David Dosso
This paper deals with financial development in resource-rich countries with a look at the effect of institutional quality. Using a panel data of 100 countries over the period 1996–2017, we show that natural resources could affect financial development differently according to threshold levels of institutional quality. By estimating a nonlinear panel model with endogenous threshold variable, we find
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The impact of the strengthening of export controls on Japanese exports of dual-use goods International Economics Pub Date : 2023-04-01 Kazunobu Hayakawa, Keiko Ito, Kyoji Fukao, Ivan Deseatnicov
This study empirically examines the effect of export control regulations on Japan's exports using monthly export data at the destination country-product level. The study covers the period from January 2017 to December 2021. The findings can be summarized as follows. First, no significant effects of the introduction or tightening of export controls by the Japanese government on Japan's exports are found
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Erratum to “Environmental regulation and productivity growth: Main policy challenges” [International Economics 165 (2021) 264–277] International Economics Pub Date : 2023-03-29 R. De Santis, P. Esposito, C. Jona Lasinio
Abstract not available
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Gains from trade and their quantification: Does sectoral disaggregation matter? International Economics Pub Date : 2023-03-17 Stefano Bolatto, Graziano Moramarco
Multi-sector variants of gravity models typically predict much larger gains from trade (losses from protectionism) than their one-sector counterparts. This result –corroborated by several model-based quantification studies and commonly ascribed to Jensen’s inequality– has been recently questioned by studies that use micro price data to obtain sector-level estimates of the trade elasticity, a key parameter
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The economic impact of conflict-related and policy uncertainty shocks: The case of Russia International Economics Pub Date : 2023-03-16 Marina Diakonova, Corinna Ghirelli, Luis Molina, Javier J. Pérez
We show that policy uncertainty and conflict-related shocks impact the dynamics of economic activity (GDP) in Russia. We use alternative indicators of “conflict”, referring to specific aspects of this general concept: geopolitical risk, social unrest, outbreaks of political violence, and escalations into internal armed conflict. For policy uncertainty we employ the workhorse economic policy uncertainty
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Entering the supplier base through certified management standards International Economics Pub Date : 2023-03-01 Stefano Bolatto, Giuseppe Pignataro
This paper explores the external motive (i.e., the signaling purpose) according to which small- and medium-size firms are increasingly adopting a strategy of multiple certification at international standard-setting bodies (e.g. ISO), possibly to increase their chances of being selected as suppliers by large global players. We investigate how firms select their certification strategy, choosing between
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The European economy in the time of Covid-19: Towards a new dawn? International Economics Pub Date : 2023-02-17 Amélie Barbier-Gauchard, Samuel Ligonnière, Jamel Saadaoui
Abstract not available
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How do real and monetary integrations affect inflation dynamics? International Economics Pub Date : 2023-02-16 Hülya Saygılı
This paper examines the significance of real and monetary integrations for the inflationary dynamics of an emerging country, Turkey. The analysis accounts for 2-digit items of CPI inflation, which can be broadly categorized as tradable versus non-tradable and goods versus services. We find that a fall in the inflation gap between partner countries is mainly related to real integration whereas the co-movement
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The case of financial and banking integration of Central, Eastern and South Eastern European countries: A gravity model approach International Economics Pub Date : 2023-02-08 Léonore Raguideau-Hannotin
The motivation of this article is to better understand the determinants of international banking integration of non-Euro CESEE EU Members. One stylized fact for these economies is the building up of external financial vulnerabilities since the beginning of the transition period, with a large weight of cross-border banking, particularly with the European Union. In relation with the literature on the
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Trade secret protection, multinational firms and international trade International Economics Pub Date : 2023-01-30
Multinational firms indicate that the threat of trade secret misappropriation by current and former employees remains a substantial impediment to conducting business in emerging markets. In this paper, I examine the economic implications of strengthening international standards in trade secret protection. I develop a general equilibrium model featuring heterogeneous firms that differ in the degree
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Digital technologies and intra-African trade International Economics Pub Date : 2023-01-27 Safilidin Kere, Amara Zongo
Digitalisation has significantly increased in recent years in Africa and is considered a driver of economic growth and innovation. This is a great opportunity for African trade, which suffers greatly from a lack of trade infrastructure. By using a gravity model with data on 48 Sub-Saharan African (SSA) countries between 2000 and 2018, our study aims to show the effects of digital technology use on
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Impacts of oil shocks on stock markets in Norway and Japan: Does monetary policy's effectiveness matter? International Economics Pub Date : 2023-01-27 Soheil Roudari, Walid Mensi, Sami Al Kharusi, Farzaneh Ahmadian-Yazdi
This paper examines the simultaneous effects of oil shocks on stock markets under different regimes in Norway (as an oil-exporting economy) and Japan (as an oil-importing economy). We use a Structural Threshold VAR model and rely on the monetary policy's effectiveness. Our results show that oil shocks, mainly oil demand shocks, are significantly associated with the oil structure of the country (oil-exporting
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Do monetary policy mandates and financial stability governance structures matter for the adoption of climate-related financial policies? International Economics Pub Date : 2023-01-16 Paola D’Orazio, Lilit Popoyan
The proposed analysis investigates whether the type of central banks’ monetary policy mandates and their financial stability governance arrangements influence the adoption of climate-related financial policies. The empirical findings confirm a statistically significant relationship between a broader monetary policy mandate and the adoption of climate-related financial policies. However, the hypothesis
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Government debt deleveraging in the EMU International Economics Pub Date : 2023-01-16 Alexandre Lucas Cole, Chiara Guerello, Guido Traficante
We evaluate the stabilization properties of several rules and instruments to reduce government debt in a Currency Union, like the EMU. In a two-country New-Keynesian DSGE model, with a debt-elastic government bond spread and incomplete international financial markets, we study the effects of government debt deleveraging, under different scenarios for fiscal policy coordination. We find that greater
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Financial development and the growth effect of foreign direct investment: Does one size fit all? International Economics Pub Date : 2023-01-11 Michael J. Osei, Jaebeom Kim
This paper examines the relationship between financial development and the growth effect of foreign direct investment in a panel of 75 countries between 1990 and 2019 using a regression-based club convergence test and linear and nonlinear specifications. Our regression analysis suggests that financial development emerges as a significant determinant of the composition of convergence clubs, albeit differently
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Technology adoption and specialized labor International Economics Pub Date : 2023-01-07 Elias Carroni, Marco Delogu, Giuseppe Pulina
Empirical evidence identifies shortages of specialized labor as one of the main obstacles to technology adoption. In this paper, we explain this phenomenon by developing a model in which firms require specialized labor to produce with a new (more efficient) technology. We assume that the cost of specializing labor increases with the efficiency gains that can be attained through the new technology.
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Do women hold the key to financial sector development in Africa? International Economics Pub Date : 2022-12-23 Hervé William Mougnol A Ekoula, Brice Kamguia, Hermann Ndoya
This paper complements the literature on the determinants of financial development by offering one of the first studies on the effect of women's political empowerment on financial development. Across a sample of 43 African countries over the period 1996–2018, the main results show the positive effect of women's political empowerment on financial development. Our disaggregated analysis shows that women's