Questions related to International Finance
The Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) was launched in 2000 by the Government of India (GOI) and Small Industries Development Bank of India (SIDBI) as a trust to implement the credit guarantee scheme (CGS) for MSEs with an initial corpus of Rs. 2500 Cr. More contributions were made over the years, and the corpus amount stood at Rs. 7500 Cr as of March 2020. The purpose is to accelerate credit to the sector that would not be in a position to offer a third-party guarantee or collateral required by the lender. As per the International Finance Corporation, the total financing demand of the Indian MSME sector is around Rs.325lakh crore that comprised of entrepreneurs contribution of Rs.46lakh crore and estimated demand of Rs.279lakh crore. The enormity of the financial challenge is clear from the fact that the credit gap is close to twice the actual outstanding amount of formal credit extended to the sector. (Raju, 2019)
Dear RG community,
I have been studying the impact of the political, economic and financial risk indices on stock market returns, so I need monthly data (or quarterly or annual) from ICRG Database political, financial, and economic risk ratings from 1984 to 2020 for all countries?
Table 3B: Political Risk Points by Component, 1984-2020
Table 4B: Financial Risk Points by Component, 1984-2020
Table 5B: Economic Risk Points by Component, 1984-2020
Unfortunately, me or my organization do not have access to the (ICRG) database, so I would greatly appreciate your help in obtaining this data, if you can.
Just in case of you may need, my e-mail is firstname.lastname@example.org
Thank you in advance.
This discussion will focus on research that is related to FDI. It will primarily be a discussion and a sharing platform of Resources and Knowledge for the research on FDI. It is with collaborating that we can improve upon the quality of the research on FDI. I will be sharing my resources here so that the scholarship can benefit from it and a lot of time and effort that is put into searching for resources and knowledge about the research is saved here.
For The Sake of Research
- Bilateral FDI flows of the World Economies.
The source of the data is UNCTAD.
- Journal of Finance in SCOPUS.
Ranking and metrics of Journals of Finance in SCOPUS
- Country Wise Bilateral FDI Datasets
| 2001-12 |
|INFLOWS & OUTFLOWS|
|INSTOCK & OUTSTOCK|
In recent times, there have been many topics on how artificial intelligence can be used in finance: automatic financial advice, new tools, more accurate prediction, automatic trading, data management, poverty alleviation, new ethical dilemmas.
I am currently assisting on a research on cross border capital flows.
A common problem seems to be that both the acquisition of assets and valuation effects determine the cross border asset holdings as , for example, reported in the CPIS data. Hobza and Zeugner use the BoP statistics on portfolio investments to derive valuation effects on portfolio debt and equity (change in asset holdings minus acquisitions) (2014).
I am wondering if the valuation effect could also be estimated because I do not only want to distinguish between portfolio debt and equity but also between different types of instruments.
For instance, between different debt maturities.
In my investigation of the triangular relationship between international sales, international ownership and the riskiness of a stock I am looking for a database that could provide the % of foreign ownership of shares from DAX and MDAX companies between 2003-2019.
The negative sign of outflows means the disinvestments by domestic investors in foreign economies, so actually it is inflows because domestic investors are pulling money from abroad to local economy, in contrast, the negative sign of inflows means the foreign investors are pulling money from the local economy to their home abroad, so it is actually outflows. IMF uses this method which is known as "BPM6" to report capital flows. Bear in mind that the outflows of FDI, FPI and other investments are reported as an assets and the inflows of FDI, FPI and other investments are reported as liabilities. With that being said, how could we calculate the net capital inflows and outflows? For more clarification I have added an attachment of Argentina's capital flows for the year 2000, Argentina had positive FDI and FPI outflows in that year for quarter 1, but other investment outflows were negative, so that means that other investment outflows are actually inflows because of the investments repatriated home by domestic investors. In the same period, in terms of inflows, Argentina had positive FDI and FPI inflows, but the other investments inflows were negative, so the other investments inflows are actually outflows. Therefore, in order to calculate net capital inflows we add the absolute value of the other investment outflows to the positive values of FDI and FPI inflows(|-other investments outflows|+FDI inflows+FPI inflows). The same thing for net capital outflows, we add the absolute value of negative other investment inflows to the positive values of FDI and FPI outflows (|-other investments inflows|+FDI outflows+FPI outflows).
Am I right???
There is a really strange phenomenon in Chinese stock markets. When the regulation institution decides to get some new companies listed (it is noteworthy that IPO has to get permission from Securities Regulatory Commission in China), the stock market drastic falls and the Chinese investors sell out their stocks crazily.
Some argue that more stocks listed means that more money is needed by the market, but the supply is constant in the short term. So the stock price falls. But I don't think it explains well what we observe.
I started collecting data for commercial banks in Asia during the period of 1990-2015 via Orbis Bank Focus (previously known as Bankscope). However, at the moment, Orbis Bank Focus can only provide up to 5 years of latest data for some banks (for most of banks, there are only 3 years of available data). Could you please suggest other databases that I can find a longer time span of financial data?
Previously, Bankscope is able to provide long time- series data; but by the end of 2016, it is no longer to access to Bankscope as it changed to Orbis Bank Focus. So if there is anyone who has the data from Bankscope for the Asian sample of commercial banks, could you please share the data with me?
Thanks very much for your help!
I am working on bank quaterly data obtained from Bloomberg. I wonder wether there is no error in the estimation of Net Income and ROA. For example, we get a negative ROA albeit the amounts of Net Income and Total assets are positive.
As a remember, ROA=Net Income/Total assets.
Can somebody give me some explanation for me to get rid of that issue?
Reducing long-term investments for short-term purposes has been a subject of debate in the Accounting and Finance literature. According to a recent study, by Professor Kruft (from City University London) and others, "increased reporting frequency is associated with an economically large decline in investments". This is also consistent with some previous studies, such as the paper of Bhojraj and Libby, 2005, on The Accounting Review, although the relationship is conditional on what they called "cash flow conflict". It has been previously argued, on the other hand, that frequent financial reporting can help reduce the information asymmetry, which emanates from the agency theory, by enhancing information transparency (this argument is empirically supported, for example, by the article of Fu et al., 2012 on Journal of Accounting and Economics).
Given the role of frequent financial reporting in reducing information gaps between owners and managers and, at the same time, in inducing managerial short-termism, how these competing views can be matched, in your opinion?
Research shows that most countries manage their exchange rates, even those that declare a floating regime to the IMF. What is the advantage/disadvantage, outside of the obvious fact that exporters benefit from a lower exchange rate.
There must be more to it!
I am looking for more specific questions for my master thesis about Intraday Money Market, that arises from the increased demands for intraday liquidity managements, following the recent implementations of Real-time Gross Settlement Systems across nations, especially in the aftermath of the recent financial crisis.
That is an intraday game played between central bank and commercial banks for the purpose of making payments, in combination with other goals such as monetary policy, overnight interbank rate, profit maximizing, welfare maximizing, ... etc. How should it be socially efficiently organised?
Grateful to listen to advices/suggestions. Thank you!
I use daily closing values of the Philippine stock exchange index and the Implied Federal Funds Rate using Federal Funds Futures. The problem is US and Philippines have different business calendars due to various holidays, thus leading to gaps in my data.
I am looking at the role of export duration on the share of each methods of payments (open account, cash-in advance). It seems that both dependent variable (share of OA and CIA) and explanatory variable (duration of each export spell at the product-level) have reverse causality problem. To avoid the endogeneity problems linked to reverse causality between share of methods of finance and duration of exports, I am planning to use a two-stage approach to investigate the determinants of export duration in a first stage, and export duration and share of each payment method in a second stage. I am looking for a suitable instrument for the export duration in the first stage regression. Do you have any suggestion for that?
I am doing a investment-cash flow sensitivity study for an emerging country. I wonder if i need to control this relation for inflation (because the country faces high inflation rates in several years.If yes, how can I control inflation? should I deflate capital spending and cash flow or should I use inflation as a control variable? Similar question for cost of capital. Do i need to control it? In my model, beta is already a control variable. I found no related paper that controls for these variables. Thank you so much
When assessing the drivers of capital flows, many studies first divide capital flows by nominal GDP (see Ahmed/Zlate 2014, Baek 2006). In my own research, I want to compare the dynamics of US interest rates with capital flows to emerging markets in a descriptive analysis. Is it important to divide capital flows by GDP in this case? If yes, why?
Hi fellow researches,
For a descriptive analysis on capital flows and interest rate differentials, I construct a variable for net private capital flows from quarterly BOPS data. However, of course not all quarterly observations include all categories of flows (e.g. for certain quarters, portfolio flows are missing completely). How do you tend to deal with these incomplete observations? Do you use them while constructing your series or do you apply a certain rule (e.g. include only if at least net fdi, net portfolio and net other are available)?
Thanks very much in advance!
Sovereign ceiling ratings mean that no private firm from a certain country can receive a higher grade than its own sovereign. The logic of the ceiling entails that no good guy can be born in a bad family. In practice this should result in a reward to “bad” firms in the developed countries and a punishment to “good” companies from the developing nations. What do you think about it? Comments, literature and critics are welcomed.
In your opinion , give the reasons and some solutions to decrease the financial deficit of government budget.
Emerging economies have poor infrastructure and low saving rates. They need investment in physical capital to improve their performance. Foreign savings should flow into developing countries filling this gap. Private and public moneys diverge in several instruments. They vary between equity coming from firms or lending from international institutions. Could you help me to scrutinize literature on this matter?
The Worldwide Governance Indicators are:
Voice and Accountability
Political Stability and Absence of Violence/Terrorism
Rule of Law
Control of Corruption
However, instead of observing the percentile rank for Brazil, for the purposes of my research, I need the data concerning the individual ranking of each of the 26 Federal States and the Federal District.
I know that it can be found in OECD publication "Consumption tax trends", but it's unavailable for download. Other source is PWC publication "Worldwide tax summaries corporative", but it's large several thousand pages and it would be needed so much time to extract data. IMF database doesn't have possibility to download files into .xls(or .xlst) format.
Except these publications, when I enter a search query "VAT, excise duties and customs duties rates for world countries" in Google Search, I get a lot of results, but I don't know which source, except these three mentioned, is reliable.
Any solution would be greatly appreciated.
I seek to investigate the economic motives and benefits behind the adoption of IPSAS.
Seeks both international financial reporting standards and professional organizations Foundation, to achieve international harmony in practice, when the application of accounting standards.
This consensus; achieves many of the objectives it seeks to achieve the International Federation of Accountants, which represented in the public interest. Taking into account; environmental requirements which use those standards
I am going to estimate the export supply function. Please can someone explain me why we include the cost variable (wages or other input cost) as supply side determinant in export supply function. What is economic rational by including this variable and how theoretically we related these two variables. Please explain with possible references. I am very thankful
Thanks and best regards
Sayed Irshad Hussain
In the modern era, whether it is time of economic recession or in a good- going financial stability, almost all companies have resorted to cost cutting. In the context of cost cutting, outsourcing plays a pivotal role in the management strategy.Generally the services outsourced are those that are general or supportive in the parent company. Finance and accounting is a service that is outsourced more nowadays. Small as well medium companies prefer doing these tasks themselves as they have a separate department for all these supportive functions. But various companies have started opting for accounting and finance outsourcing just as a measure of saving on the in-house account management costs. Today, more and more companies are outsourcing even accounting activities so they can shift time, money and other resources to strategic business activities, instead of focusing on administrative functions. Outsourcing is a smart and viable option to optimize business processes and ultimately improve the bottom line. My concern is that how India can become a perfect destination for finance and accounting outsourcing services.
How to calculate the long run causality between exports and economic growth?
i am working on export-led growth policy for Pakistan. For short run causal link i have used the VAR model but i am little confused how the calculate the long run causality. please guide me in this matter
thanks and best regards
Sayed Irshad Hussain
While various variables like currency exchange rate, labour input etc make it difficult to distinguish between countries in term of construction productivity, is it still possible to get a ranked synopsis?
The financial sector development programme is based on financial inclusion, depth, and stability criteria. What variable should be considered as dependant and what as independent? What to do if Data relating to non bank financial institution such as pension fund and insurances are not revealed by the national statistic? What about Remittance transaction?
I have got a background in financial management and accounting. I came across some econometrics models like Autoregressive Distributed Lag model (ARDL) test and Error Corretion Model (ECM) but I am not familiar with them. I would like to know if regression models like ANOVA, OLS, mutliple regression may help to find the impact of the programme on national savings.
Thank you for your help
It is true that the Euro zone is more a political than an economic project. It is true that the leaving of Greece would send an unwanted signal to the markets and would seriously undermine the credibility of the single European currency. But what is the alternative? If Greece remains in the European Monetary Union, it means that all its members will continue to pay for Greeks' reluctance to reform their inefficient economy. Even with the highest degree of tolerance, Europe cannot continue to tolerate the Greek madness. At least voters in creditor countries will not allow it. What awaits Greece if it leaves the Euro zone? High inflation, poverty, lack of access to international financing, in other words - a return to the times before the country's membership in the EU. And in these times the standard of living in Bulgaria was higher than that of our southern neighbor.
In the current sovereign debt market landscape, the portion of government securities on the national financing are so significant that may affect the respective countries' economy. Nonetheless, debt management offices are normally less capable in managing the associated risks of the portfolio or cash flow (in comparisons to the investment banks, for instance). In this regards, hedging strategy may help the countries to mitigate the risks and manage optimum portfolio risks. The question is: to what extent the derivative market/instrument can assist the government to manage the risks? Especially, what types of derivatives are normally being utilised? What type of risk management strategy is normally employed?
In my study, I hypothesize that the amount of research produced by a specific country is a function of the country's population size and GDP. This stems from the thought that the higher the number of people, the higher might be the number of researchers in the country and that the higher the GDP, the higher will be the amount of money directed for research. Although my results validate this hypothesis, I can't find publications supporting (or not) this theory and as such my discussion is still very poor. Any help is welcome and will be acknowledged.
I want to estimate product quality follow JIE 2015 paper"Input-trade liberalization, export prices and quality upgrading", one sentence in this paper is " We rely on
Chinese elasticities of substitution at the HS3 product level estimated
by Broda et al. (2006). ", but i can't find HS3 product level data in Broda et al. (2006),where the data is more aggerate.
I sent an email to the authors of this paper some days age, but i do not get any response untill now.
Is there anybody know how to get these data ?
The derivative market is supposed to support the real economy but how come the notional amount is so large? Does it related to the low interest rate in US, huge CDOs or shadow banking problems? Thank you.
I am interested in research on Indian capital market and have completed a Ph.D. in the same subject. Now, I am in search of material which focusses on future of Indian Capital Market.
Considering BIS current data on the amount of OTC derivatives contracts , the "betting game" might be valued 10 times the world GDP value.
Do you see any further finantiarization risk related to the present main Central Banks monetary policies , deferring the end of QE and low interest rates?
Attractors are probably what comes closest to an "equilibrium" for a dynamical system. While the trajectory of the system may vary, its stability may still be captured through an attractor classification. It would be interesting to note certain attractor properties in connection to FDI, and the set of assumptions need to allow for such a scrutiny.
So far aware of one paper that uses the term "strange attractor" in connection to FDI figuratively. And not in its strictly chaos definition(s).
We understand that M-PESA technology adopted by Kenya is a success story for the world in digital financing. I would appreciate it if researchers could shed light for its success and the basic infrastructure required for its successful operation. We are visiting Kenya to learn about this technology so that it could be introduced in Nepal as well.
I am intending to predict default probabilities by using logit regression on financial ratios of several companies from the same sector. Any idea where could I find a data set of companies from same sector that defaulted? I will be able to find all the financial ratios for them afterwards as long as they are listed but I need the basic data set of companies.
My dependent variable is gini coeff and explanatory variables included lagged gini variable , trade and FDI variables (which can cause endogeneity problem),GDP,GDP-square ? I thought of using System GMM since i have lagged dependent variable and endogeneity problem. Also,please guide when there is square term of GDP in my explanatory variables can still system GMM be used?
Professor Yanis Varoufakis put a new proposal in order to cure the domestic treasury and to ensure a sound fiscal position in the medium or rather long term .
The idea is to issue GDP-linked bonds.
As far I understand the idea, the coupons should be linked with the GDP. The problem arises when we consider the future point of payment, since we obtain the GDP data with delay of ca. 4-6 months.
Is Mr. Varoufakis proposition a hidden haircut or rather a variation of Brady bonds?
Now might be a great time to start the baseline of a longitudinal study of NCDs, especially cardiovascular disease, in Cuba before foreign direct investment by companies such as McDonald's, Yum Brands, etc. takes over the island. It would be interesting to see if, as incomes rise and people have more disposable income, whether they eat fast food, whether their BMI increases and if this causes higher cardiovascular morbidity and mortality. We have anecdotal evidence from East Asia following the 1997 currency crisis, where because the value of the bhat and other currencies fell relative to the dollar, people could not afford to eat fast food as much as they had been. People reported that they didn't eat fast food as much and felt better after moving back to a more traditional diet but there is no quantitative evidence of the effects on the incidence of cardiovascular disease.
Just a thought.
I have read several papers on the cross-correlation between spot exchange rate and forward exchange rate, but find little economic meaning of that relationship.
In my opinion,export or import-company can avoid exchange rate risk by hedging with forward contracts. The central bank needs to adjust the monetary policy based on the changing relationship over time.
Any theory to analyze the meaning of spot and forward exchange rate?or any papers?
I am interested in research on corporate governance and FDI in developing countries particularly sub-saharan African countries like Nigeria and South Africa.
I am interested in the kind of questions I can ask stock brokers and investment bankers. Most of the research on stock markets behavior is mainly secondary data form but I also want to have some primary data on this. Contributions will be appreciated.
I am wondering why the concept of hoarding has disappeared after Keynes's General Theory. Are there any economists who tried to extricate the concept of Hoarding after Keynes?
The concept of Hoarding was once one of the most important ones. For example, it was an essential part of D. S. Robertson's framework of his monetary theory. However this concept does not play any conspicuous role in the economics after Keynes. It was practically wiped out from economics. As I have observed in my post of December 13, 2014 to my own question "Is saving necessarily invested or not? How can this contradiction in Keynes be solved?" (linked below), it seems that Keynes's Liquidity Preference concept has replaced and wiped out the concept of Hoarding.
I am thinking to save the concept of Hoarding and coin it anew as an essential part of the monetary theory of productions. In that purpose, I want to know the conceptual history of the this notion.
What I have in mind is a numeric (preferably continuous) measure of personal income tax progressivity that allows to compare countries in a consistent manner.
I'm interested in the effectiveness of Corporate governance codes in emerging markets and will appreciate any framework that can assist in evaluating the outcomes of the codes from a financial or accounting point of view.
I have gone through many research papers, I found that Claessen et. al. is followed most of the time. Though Claessen et. al. model was used for cross-national studies, in single country studies also this model is followed. is there any better alternative for Claessen et. al ?
I am wondering whether the intercepts in models 5-8 of Table 4 can be interpreted as the change in operating performance of sample firms through the IPO. This would mean that on average, the operating performance deteriorates through the IPO by -19.78% to -37.41% depending on the model specifications. Is this correct or am I missing something?
Thank you for the clarification!
I came across a paper which claims to use US inflation rates to recalculate GDP data. In 1990, international Geary-Khamis dollars provided for different countries in Maddison’s data base into nominal GDP data in US dollars.
Does anyone know how that can be done? The explanation is not provided in the paper, and the paper is published in a top journal.
In estimating the impact of liquidity on real sector activity variables with various econometric techniques, one could inevitable come across an endogeneity problem as liquidity feeds say the output and then there is a feedback loop effect. Has anyone come across a good instrumental variable to reduce the endogeneity problem?
With external borrowing by the government which has the muscle to borrow at any interest rates, it is usually believed by many economics scholars that interest rates will go down due to excess supply of funds, but I do think otherwise. What main factors will result to lending rates reducing or otherwise?
Naive diversification is combining assets into portfolios randomly and ignore correlation. In contrast, Markowitz diversification is combining assets with correlation coefficients.
Alpha is a risk-adjusted measure of active return on an investment.
The FF 3 factor model is emerging 2 classes of stock with CAPM to reflect a portfolio's theory.
r - Rf = beta3 x ( Km - Rf ) + bs x SMB + bv x HML + alpha
Alpha Coefficient can show that in an efficient market, the expected value of the alpha coefficient is zero. Therefore the alpha coefficient indicates how an investment has performed after accounting for the risk it involved:
Alpha_i < 0 : the investment has earned too little for its risk (or, was too risky for the return)
Alpha_i = 0 : the investment has earned a return adequate for the risk taken
Alpha_i > 0 : the investment has a return in excess of the reward for the assumed risk
I can find the current components of these market indexes but not historical information. Companies can change from year to year.
Robert Lucas (1990) observed that little capital flows to poorer nations where returns are higher. The explanations put forth so far and empirical studies conducted do not fully account for this bizarre flow of capital. Given this anomaly, could perception of sovereign risk be a factor?
Before you attempt to answer this question, here is my view. There is the actual risk and perceived risk that managers are faced with when making investment decisions. In conditions of information asymmetry, it may imply that the actual and perceived risk may be at variance, with perceived risk getting more prominent. In fact, perceived risk may play a big part in driving investment decisions- informally being labelled as expert judgement and gut feeling. Coupled with the fact that managers in modern corporate governance settings are being pushed towards the maximization of shareholder value (actual or perceived), even well informed managers may shun positive NPV projects in developing countries in order to not trigger a negative market reaction.
Do you see any sense in my argument? Sorry the idea is still raw thats why it's not very clear.
The severity of the 2007-2009 financial crisis, just like the emerging market crises of the 1990s, has raised the question as to whether modern liberalized financial markets are more of a curse than a blessing. In theory, liberalized financial markets should allow efficient risk - sharing. Some research works have shown that financial integration leads to a lower degree of business cycle synchronization. It is also argued that proximity to major international financial centers seems to reduce business cycle volatility. But many find that theoretical predictions of risk-sharing benefits are not supported by the data.
When is the right time to change the laws of a country that are not in alignment with IFRS?
I would like to take part in such conference or any other scientific event on the issue.