{"title":"FINANCIAL LITERACY AND FINANCIAL INCLUSION EFFECTS ON STABILITY AND COMPETITIVENESS INDICATORS IN THE BANKING SECTOR: CROSS COUNTRY EVIDENCE FOR AFRICA AND THE WORLD","authors":"João Jungo, M. Madaleno, A. Botelho","doi":"10.1142/s2194565921500093","DOIUrl":"https://doi.org/10.1142/s2194565921500093","url":null,"abstract":"Financial inclusion has allowed financial products with very high-interest rates and complex conditions to become increasingly affordable. Financial inclusion programs, which aim to reach all social strata, strongly expose financial institutions to risk and particularly credit risk. That said, additional interventions such as financial education of those included are needed. We aim to examine the impact of financial literacy and financial inclusion of households on bank performance. Specifically, we want to examine the impact of financial literacy on credit risk, competitiveness among banks and financial stability. The FGLS estimation results suggest that financial literacy and financial inclusion reduce credit risk and enhance the stability of banks, and regarding competitiveness, our results were inconclusive as they show different effects for each competitiveness indicator, although they point to improved competitiveness in some cases. This research allows policymakers to understand that individual financial attitudes can be reflected in the general welfare of financial institutions and encourages the intensification of programs aimed at improving household financial literacy.","PeriodicalId":44015,"journal":{"name":"Global Economy Journal","volume":"80 1","pages":""},"PeriodicalIF":0.7,"publicationDate":"2021-09-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"81565879","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"IMPACTS OF REMITTANCES ON EXCHANGE RATES AND NET EXPORT","authors":"Seyedsoroosh Azizi","doi":"10.1142/s2194565921500068","DOIUrl":"https://doi.org/10.1142/s2194565921500068","url":null,"abstract":"This study investigates the impacts of workers’ remittances on real exchange rates and net export by using data for 101 developing countries from 1990 to 2015. One challenge in addressing the impacts of remittances on real exchange rates is the endogeneity of remittances. To address the endogeneity of remittances, we estimate bilateral remittances and use them to create weighted indicators of remittance-sending countries. These weighted indicators are used as instruments for remittance inflow to remittance-receiving countries. Results obtained in this study indicate that remittances lead to real exchange rates appreciation and net export reduction in remittance-receiving countries.","PeriodicalId":44015,"journal":{"name":"Global Economy Journal","volume":"55 1","pages":""},"PeriodicalIF":0.7,"publicationDate":"2021-09-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"88001236","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Joseph Pelzman, Murat Issabayev, Yessengali Oskenbayev
{"title":"NEGOTIATION ON NATURAL RESOURCES","authors":"Joseph Pelzman, Murat Issabayev, Yessengali Oskenbayev","doi":"10.1142/S2194565921500056","DOIUrl":"https://doi.org/10.1142/S2194565921500056","url":null,"abstract":"The host government (HG) of resource-rich countries (RRC) dealing with multiple International Oil Companies (IOCs) faces a choice between making a simultaneous multilateral offer and a sequential bilateral offer on equity shares from resource value. Provided that the HG treats all its foreign partners in a simultaneous negotiation as a single entity, it is argued that the HG is predicted to gain a higher equity share from a simultaneous multilateral bargaining deal than from a sequential bilateral one with each player. Furthermore, we argue that in case of positive weak externality from a sequential bilateral game, HG would still prefer a simultaneous multilateral game due to superadditivity and efficiency properties of grand coalition.","PeriodicalId":44015,"journal":{"name":"Global Economy Journal","volume":"110 1","pages":""},"PeriodicalIF":0.7,"publicationDate":"2021-07-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"76346257","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"INVESTMENT LIBERALIZATION, CREDIT CONSTRAINTS, AND INTERNATIONAL TRADE","authors":"Tingting Xiong, Hao Sun","doi":"10.1142/S2194565921500044","DOIUrl":"https://doi.org/10.1142/S2194565921500044","url":null,"abstract":"This paper investigates the effect of bilateral investment treaties (BITs) on the extensive and intensive product margins of exports in sectors with different credit constraints. The model in this paper demonstrates that such investment liberalization increases the extensive product margin by lowering the variable costs of selling abroad, while it decreases the intensive product margin by lowering both the fixed investment costs and the variable costs. Moreover, the effects of investment liberalization are stronger in financially more vulnerable sectors. Using a detailed dataset of 190 countries and 27 manufacturing sectors from 1988 to 2006, this paper furnishes robust evidence that BITs increase the extensive margin of exports from developed countries and decrease the intensive margin of exports. It further shows that BITs decrease the intensive margin of exports from developed countries more in the sectors that are more dependent on external finance. Similarly, the intensive margin of exports from developed countries in low tangibility sectors falls by 11.81% because of BITs, while the intensive margin in high tangibility sectors is quite stable with BITs.","PeriodicalId":44015,"journal":{"name":"Global Economy Journal","volume":"106 1","pages":"2150004"},"PeriodicalIF":0.7,"publicationDate":"2021-06-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"84762183","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"DYNAMIC VOLATILITY SPILLOVERS ACROSS THE EXTENDED GREATER CHINA REGION STOCK MARKETS","authors":"J. Diaz","doi":"10.1142/S2194565921500032","DOIUrl":"https://doi.org/10.1142/S2194565921500032","url":null,"abstract":"The study investigates volatility transmissions of major financial market indices found in the Extended Greater China Region (EGCR): the Shanghai Stock Exchange Index (SSEI), the Hang Seng Stock Ex...","PeriodicalId":44015,"journal":{"name":"Global Economy Journal","volume":"4 1","pages":"2150003"},"PeriodicalIF":0.7,"publicationDate":"2021-05-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"88233585","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Onah Celestine Chijioke, A. Aloysius, Deborah O. Obi
{"title":"MERCANTILISM IN PERSPECTIVE: A HISTORIC REVIEW","authors":"Onah Celestine Chijioke, A. Aloysius, Deborah O. Obi","doi":"10.1142/S2194565921500019","DOIUrl":"https://doi.org/10.1142/S2194565921500019","url":null,"abstract":"Nations’ human and material resources are unevenly endowed, distributed and developed. This allows flow of labor, raw materials, capital and finished products across national boundaries and markets; thus resulting in “mercantilism” as the earliest international economic system that proposes massive and aggressive export over import to accumulate wealth, to have favorable balance of payment and trade and to be still relevant in today’s economy. Game theory and Global Strategic Rivalry theory were used in analyzing various innovations and discoveries (industrial, technological, colonial, imperial, liberalism and globalization) as the economic strategies are offshoots of mercantilist evolvement. Hence, mercantilism never died nor was it buried as claimed by many scholars.","PeriodicalId":44015,"journal":{"name":"Global Economy Journal","volume":"25 1","pages":"1-17"},"PeriodicalIF":0.7,"publicationDate":"2021-03-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"74918171","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"NONLINEAR ARDL APPROACH AND PPP: EVIDENCE FROM 82 COUNTRIES","authors":"A. Arize, Mohsen Bahmani‐Oskooee","doi":"10.1142/S2194565921500020","DOIUrl":"https://doi.org/10.1142/S2194565921500020","url":null,"abstract":"Since the introduction of asymmetric cointegration and error-correction modeling, old theories have been getting a renewed attention, and purchasing power parity theory (PPP) is no exception. In this paper, we revisit the PPP by applying this relatively new technique. When we applied the symmetric cointegration test of Pesaran et al. [Pesaran, MH, Y Shin and RJ Smith (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16(3), 289–326], we found cointegration between the nominal exchange rate and relative prices in 22 out of 82 countries. However, application of the asymmetric cointegration method of Shin et al. [Shin, Y, B Yu and M Greenwood-Nimmo (2014). Modelling asymmetric cointegration and dynamic multipliers in a nonlinear ARDL framework. In R. Sickels and W. Horrace (eds.), Festschrift in Honor of Peter Schmidt: Econometric Methods and Applications, pp. 281–314. New York: Springer] increased the number to 51 out of 82 countries. Nonlinear adjustment of relative prices was said to be the main contributing factor.","PeriodicalId":44015,"journal":{"name":"Global Economy Journal","volume":"40 1","pages":"1-17"},"PeriodicalIF":0.7,"publicationDate":"2021-02-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"74182695","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"THE RELATIONSHIP BETWEEN FINANCIAL DEVELOPMENT AND ECONOMIC GROWTH IN LATIN AMERICAN COUNTRIES: THE ROLE OF BANKING CRISES AND FINANCIAL LIBERALIZATION","authors":"A. Santana","doi":"10.1142/S2194565920500232","DOIUrl":"https://doi.org/10.1142/S2194565920500232","url":null,"abstract":"This paper examines the effects of banking crises and financial liberalization on the relationship between financial development and economic growth in a panel of 16 Latin American countries over t...","PeriodicalId":44015,"journal":{"name":"Global Economy Journal","volume":"5 1","pages":"1-26"},"PeriodicalIF":0.7,"publicationDate":"2020-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"87563832","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"CONVERGENCE PATTERNS IN CRYPTOCURRENCY MARKETS: EVIDENCE FROM CLUB CONVERGENCE","authors":"P. K. Sahoo","doi":"10.1142/S2194565920500220","DOIUrl":"https://doi.org/10.1142/S2194565920500220","url":null,"abstract":"This paper empirically examines the convergence of cryptocurrency markets with particular attention to top 30 cryptocurrencies. The study applies the novel Phillips and Sul panel convergence techni...","PeriodicalId":44015,"journal":{"name":"Global Economy Journal","volume":"33 1","pages":"1-10"},"PeriodicalIF":0.7,"publicationDate":"2020-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"81040852","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}