1,720,976 research outputs found
Technological regimes and catching up in the product space
No full textThis article proposes a micro-founded model of countries' diversification trajectories in the product space. We argue that the type of technological regime under which countries operate conditions their export performance and diversification trajectories. In particular, repeated simulations show that countries with firms operating under an entrepreneurial regime expand their export basket faster when most other countries are characterized by a routinized regime. Simulations also show that catching-up trajectories in the product space are less likely when all countries operate under the same technological regime.</p
Access to credit and investment decisions of small- and medium-sized enterprises in China
No full textFinancial constraints are common in developing countries where financial systems are underdeveloped. In China, firms report that access to finance is the most important obstacle in the business environment. This is related to firms that fail to gain access to the credit market. We examine the likelihood of gaining access to credit by firms, and find that size and exporting appear to be the key characteristics. Credit constraints are significant for investment decisions. Together with size, access to credit is among the firm characteristics with the greatest impact on the likelihood to invest.</p
The extensive and intensive margins of exports of firms in developing and emerging countries
No full textUsing a dataset of over 86,000 firms from 179 surveys in developing and emerging countries, this paper presents evidence of the relationship between the margins of trade and productivity. Consistent with heterogeneous firm theoretical models, firms with high productivity have both greater likelihood of exporting (extensive margin) and higher export volume (intensive margin). Access to credit increases likelihood of entry to international markets; however, credit does not increase export volume. Size is a robust indicator of exporting status and the volume of exports. Firms with foreign ownership participation tend to be exporters, while those with state participation tend not to be.</p
Remittance and its effect on poverty and inequality: a case of Nepal
No full textThis paper examines the impact of remittance on poverty and income inequality in the context of Nepal using cross-sectional national survey- Nepal Living Standard Survey, third edition (NLSS3) of 2010-11. We employ a Heckman two-step estimation model with instrumental variables and constructed counterfactual income to investigate the real impact of remittances. We find that remittance has helped in the reduction of poverty ratio by 5.3% but deepened the poverty gap by 7.37% and severity by 9.25%. In terms of inequality, remittance has helped to reduce inequality within the remittance receiving group, however, it also contributed to rising income inequality when compared to non- remittance receiving group
Purchasing power parity in OECD countries: nonlinear unit root tests revisited
No full textThe aim of this paper is to provide additional evidence on the purchasing power parity empirical fulfilment in a pool of OECD countries. We apply the Harvey et al. (2008) linearity test and the Kruse (2011) nonlinear unit root test. The results point to the fact that the purchasing power parity theory holds in a greater number of countries than has been reported in previous studies.</p
Nonlinearities and the order of integration of oil prices
No full textUnit root tests are the starting point of most empirical time series research. This paper analyses the order of integration of oil prices taking into account the possibilities of nonlinearities in the deterministic components. Using an aggregate index for the price of oil, and applying Bierens (1997) unit root tests, we find that the hypothesis of a unit root process is rejected in favour of nonlinear trend stationarity of the price of crude oil. On the contrary, preliminary analysis using Ng and Perron (2001) and Kapetanios, Shin and Snell's (2003) tests, fail to reject the hypothesis of a unit root
On the relationship between exchange rates and external imbalances: Should we learn from east and South-East Asia?
No full textThe role the real exchange rate plays in determining current account balances has gathered momentum as East and Southeast Asian countries have seen increasingly positive current account balances. This paper analyses the evolution of current accounts in the region. A cointegrating relationship between the real effective exchange rate and the ratio of the current account balance to the GDP is tested, based on both linear and nonlinear models. The half-life of current account imbalances is relatively short, implying high capital mobility. Results point to the existence of a long-run relationship, and in most cases the causality runs from the exchange rate to the current account.</p
Testing for PPP in Australia: evidence from unit root tests against nonlinear trend stationarity alternatives
No full textThis paper tests for the empirical fulfilment of PPP in Australia (1977-2004). Previous research focuses on the presence of structural breaks and fails to find any support for PPP (Darne and Hoarau, 2008, Henry and Olekalns, 2002). In contrast, we find that the real exchange rate is stationary once we account for a more general specification of the nonlinear deterministic components based on a Chebishev polynomials approximation
Convergence in corporate statutory tax rates in the Asian and Pacific economies
No full textCountries in the Asia and Pacific region have shown many macroeconomic similarities during a period of economic integration. This paper argues that there may be one more macroeconomic feature to add to the list: strong statutory tax convergence. Using data on the statutory corporate tax rate in 15 countries from 1980 to 2014, we identify (i) a significant dynamic tax convergence pattern and (ii) three tax convergence clubs. The latter consist of the small tax haven economies of Hong Kong and Singapore, the East Asian countries (plus one) and the South and Southeast Asian and Oceania countries. These economies, within groups, have been reducing the tax gaps with their neighbours over time.</p
LTV policy as a macroprudential tool and its effects on residential mortgage loans
No full textSince the early 2000s, macroprudential policy has increasingly become part of the regulatory and supervisory framework. Likewise, the housing market has been at the center of the debate on systemic financial risk prevention. Among macroprudential tools, the purpose of the loan-to-value (LTV) ratio is to constrain mortgage loan creation. This paper is unique in that it analyzes the effectiveness of LTV on mortgage lending moderation using a large sample of more than 4000 banks from 46 countries. The analysis suggests mortgage loans have been successfully curbed in countries with a LTV policy. Size and non-performing loans are the two key characteristics to the effectiveness of LTV. When nonlinearities are considered, the average effect of LTV can be very large; however, it becomes much less effective with large banks and banks with bad loans. Our results suggest the inclusion of other macroprudential tools may have complementary effects to LTV, and for large size banks in particular.</p
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