On International Consumption Risk Sharing, Financial Integration and Financial Development

Mimir, Yasin

doi:10.1080/1540496x.2015.1050927

Cited by 11 publications

(9 citation statements)

References 26 publications

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“…The relation between integration and informational efficiency is consistent with evidence in prior studies such as Li et al (2004), Bae et al (2012) and Büttner and Hayo (2011). The findings infer that as emerging markets become more globally integrated the dominance of country-specific news over global ones in describing INTEG is the integration score, VTRD is the value of shares traded to GDP, a is the intercept, MKT is the market capitalization to GDP, RECR is the recovery rate, EDISCL is the extent of disclosure, EDLIAB is the extent of directo, r' sliability, ESSUIT is the ease of shareholder suit, TRD is the trade-to-GDP, BMON is the trade-to-GDP, CEFC is the contract enforcement cost as a percentage of claim is the coefficients, w is the element of the adjacency matrix W, is the spatial specific effects emerging market equity returns decreases which is consistent with studies such as Mobarek and Li (2014), Mimir (2016), andBoamah (2017a, b). The loadings on TRD and INTEG appear complementary as prior studies such as Aizenmann and Noy ( 2006), Aloui et al (2011), Gur (2013, Karim and Majid (2010) and Ahmed et al (2017) show a positive relation between integration and global trade.…”

Section: Drivers Of Emerging Markets Global Informational Inefficiencysupporting

confidence: 79%

Integration, investor protection rules and global informational inefficiency of emerging financial markets

Boamah

2021

SN Bus Econ

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Relying on dynamic conditional correlations, state space model and variance decomposition techniques, the study explores the delay in global information diffusion into emerging market security prices. It examines the relevance of financial market integration, economic engagement and investor rights protection regimes in describing the cross-section and time-series variability in global informational inefficiency of emerging markets. The study provides evidence of substantial variations overtime of both the degree of integration and information delay estimates. The study shows that financial market integration, economic integration, and investor protection regulations describe the time-lag within which emerging market security prices incorporate global information. The findings suggest that emerging markets should facilitate their global integration process, improve their domestic economic environment and investor protection regimes. These are essential in facilitating timely global information incorporation into emerging market security prices, attracting foreign capital and minimising projects cost of capital.

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Section: Drivers Of Emerging Markets Global Informational Inefficiencysupporting

confidence: 79%

Integration, investor protection rules and global informational inefficiency of emerging financial markets

Boamah

2021

SN Bus Econ

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“…The theory states that banking development is one of the key determinants of economic growth. Many empirical studies highlight a positive relationship between FD and economic growth, or its drivers such as investment or openness, etc., including, among others, Ge and Qiu (), Hasan et al (), Tsoukas (), Kendall (), Han and Shen (), Huang et al (), Luo et al (), and Mimir (). A distinct study by Ge and Qiu () examined the comparative impact of FD on state‐owned firms and non‐state‐owned firms in China.…”

Section: Review Of Literaturementioning

confidence: 99%

Does Institutional Quality Matter for Financial Development and Growth? Further Evidence from MENA Countries

Kutan

Samargandi

Sohag³

2017

Australian Economic Papers

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This study scrutinises the role of institutional quality in the linkage of financial development and economic growth in 21 Middle East and North African (MENA) countries. Using the common correlated effect mean pooled approach and annual data for the period 1980-2012, we find that not all measures of financial development promote economic growth in the absence of institutional quality, but they all augment growth in the presence of institutional quality. Furthermore, we find that foreign direct investment enhances the growth of MENA countries by the development of financial markets.

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“…Therefore it is domestic income volatility that matters on consumption dynamics than foreign capital. Mimir (2016) showed that consumption smoothening is high in highly integrated countries and low in countries with high degree of financial development. In the later countries it is domestic resources that matters in explaining the JED 22,2 consumption smoothing hypothesis.…”

Section: Literature Reviewmentioning

confidence: 99%

Financial integration and macroeconomic volatility in Zimbabwe

Makoto

2020

JED

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PurposeMany developing countries are pursuing policies that foster international financial integration after decades of financial repression. Greater access to foreign financial markets may have both positive and negative impact on the performance of the economy. One of the concerns of international financial integration is macroeconomic volatility which may affect both monetary and real sectors. Zimbabwe has chosen to pursue a financial liberalization strategy in the form of imperfect financial integration following periods of excessive domestic shocks. An upsurge of capital flows since the epic of economic crisis in the 2000s has been observed with varying macroeconomic impacts. This study empirically examines the impact of partial international financial integration on the volatility of macroeconomic variables.Design/methodology/approachThe study utilized an ARDL Model suggested by Pesaran et al., (2003) which is appropriate for short time periods.FindingsThe results show that financial integration has a negative effect on output volatility while insignificant on consumption volatility.Practical implicationsThe study recommends that the country should gradually liberalize the capital account and properly sequence financial development reforms in order to minimize losses from global financial integration.Originality/valueThe study used time series for Zimbabwe during a period of external imbalance, repeated economic cycles, sudden stops in capital flows and limited scope of imperfect financial integration. Findings in such an economy will be a referral for policymakers in other economies that would want to pursue international financial integration.

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On International Consumption Risk Sharing, Financial Integration and Financial Development

Cited by 11 publications

References 26 publications

Integration, investor protection rules and global informational inefficiency of emerging financial markets

Integration, investor protection rules and global informational inefficiency of emerging financial markets

Does Institutional Quality Matter for Financial Development and Growth? Further Evidence from MENA Countries

Financial integration and macroeconomic volatility in Zimbabwe

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