International Capital Flows and Extreme Exchange Market Pressure: Evidence from Emerging Market Economies

Tan, Sook-Rei; Wang, Wei-Siang; Chia, Wai‐Mun

doi:10.1007/s11079-020-09599-y

Cited by 2 publications

(4 citation statements)

References 46 publications

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“…To summarize, when we changed the measurement method for the dependent variable-using Tan and Qian's method for measuring technological progress [46], zeroinflation Poisson regression, Tobit regression, and PSM regression-the four methods applied gave the same results as the benchmark regression, which verified Hypotheses 1-3 proposed in this paper. The N-shaped relationship between R&D investment and technological progress is thus well-proven, meaning continuous R&D investment is a necessary factor at this stage for the success of China's PV industry.…”

Section: ) Tobit Regression Modelsupporting

confidence: 70%

“…Yet, many studies have shown that the numbers of invention patent applications and invention patent licenses do little to reflect the innovation of an industry [45]. To this end, referring to Tan and Qian's method for measuring technological progress [46], this paper instead used the number of invention patents granted and the natural logarithm as a new proxy variable. Accordingly, the results of Model 1 in Table 5 are robust and support Hypotheses 2 and 3 once again.…”

Section: Robustness Test (1) New Measurement Of Technological Progressmentioning

confidence: 99%

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The Impact of Enterprise R&D Investment and Government Subsidies on Technological Progress: Evidence from China’s PV Industry

Cai

et al. 2022

Energies

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China has become the major stakeholder in global photovoltaic (PV) technology. However, the existing mechanistic interpretation of “what promotes the technological progress of the Chinese PV industry” is controversial. This paper takes China’s A-share listed PV enterprises from 1999 to 2019 as the research sample and uses a panel fixed-effect regression model to empirically test the impact of research and development (R&D) investment and government subsidies on the technological progress of PV enterprises. The results show that there is an “N”-shaped nexus between R&D investment and technological progress, and most PV enterprises are in the climbing stage of the N-shaped curve. With the development of the PV industry, the nexus will undergo a transformation from inverted U-shaped to N-shaped, indicating that R&D investment is a key driver of PV technological progress. Yet, government subsidies are a “double-edged sword”. They have a significant positive direct effect on PV technological progress but also a negative moderating effect. Tax returns play a positive incentivizing role, while financial subsidies play a negative moderating role. This study provides a policy basis for the timely reduction of financial subsidies and increased R&D investment to promote technological progress in China’s PV industry.

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Section: ) Tobit Regression Modelsupporting

confidence: 70%

Section: Robustness Test (1) New Measurement Of Technological Progressmentioning

confidence: 99%

The Impact of Enterprise R&D Investment and Government Subsidies on Technological Progress: Evidence from China’s PV Industry

Cai

et al. 2022

Energies

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“…Second, in the high-pressure regime, which dominates the sample period, an increase in inflation, credit growth, and the volatility index (VIX), and a decrease in short-term external debt exacerbate pressure in Turkey. This provides supporting empirical evidence for the importance of macroeconomic fundamentals, and capital flows in explaining the EMP in EMEs Tan et al, 2020).…”

Section: Introductionsupporting

confidence: 64%

“…Investigating 2000Q1 -2014Q3 for 50 OECD and EMEs, Aizenman and Binici (2016) concluded that external factors play a crucial role in EMP, while shortterm capital flows have significant effects on the EMP in EMEs. Tan et al (2020) showed that credit and portfolio flows are significant indicators of both extreme negative and positive EMP episodes in EMEs. Ozcelebi (2020) demonstrated that the increase in the developed country's financial stress index raises the pressure on the EMP index in EMEs.…”

Section: Relevant Empirical Literaturementioning

confidence: 99%

Analyzing Exchange Market Pressure Dynamics with Markov Regime Switching: The Case of Turkey

İlhan

Akdeni̇z

Özdemir

2022

OMEE

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This study analyzes the dynamics of exchange market pressure in Turkey by employing the Markov regime switching model for the period from January 2006 to December 2019. Our findings show that there are two regimes in the foreign exchange market, characterized as low- and high-pressure periods. The domination of the high-pressure regime in the sample period indicates that depreciation pressure prevails in the Turkish foreign exchange market. During this regime, the pressure is aggravated by the rising inflation, credit growth, and VIX, and the falling of short-term external debt. Thus, in the presence of capital flows, the preferences of policy authorities regarding price stability and growth determine the course of the pressure. When these policy choices favor credit-driven growth, depreciation pressure in the foreign exchange market is exacerbated through the current account deficit.

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International Capital Flows and Extreme Exchange Market Pressure: Evidence from Emerging Market Economies

Cited by 2 publications

References 46 publications

The Impact of Enterprise R&D Investment and Government Subsidies on Technological Progress: Evidence from China’s PV Industry

The Impact of Enterprise R&D Investment and Government Subsidies on Technological Progress: Evidence from China’s PV Industry

Analyzing Exchange Market Pressure Dynamics with Markov Regime Switching: The Case of Turkey

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