Free trade is beneficial for all nations. Pareto optimality can be reached by trade without barriers, leading to maximizing total welfare of nations involved. Yet there are clear cases of complaining at the World Trad...Free trade is beneficial for all nations. Pareto optimality can be reached by trade without barriers, leading to maximizing total welfare of nations involved. Yet there are clear cases of complaining at the World Trade Organization （WTO） in which home bias is plausibly the reason for complaining, rather than objective criteria of the rules of trade agreements. Next to home bias in individual cases induced home bias leading to complaining at WTO might also be a trend. Using correlation and stepwise regression analysis a dataset on 28 complaining countries is analysed. The number of complaints at the WTO is the dependent variable in exploratory modeling. Independent variables are various variables on economic structure. Structural unemployment （SUN）, agricultural import share, current account balance, international property rights （IPR）, and foreign direct investment （FDI） turned out to be significantly related to the number of complaints. This is a strong indicator that complaining at the WTO is at least partly induced by other than objective factors. One of these factors other than objective factors could be considered as an induced home bias which leads to disruptive trade. The established relationship with one of these factors indicates the existence of induced home bias as an actual trend based on the outcomes of the analysis presented.展开更多
Stock exchange market responses to macroeconomic fluctuations show deviations between countries in terms of direction, magnitude and duration due to the idiosyncratic characteristics of the countries. The paper empiri...Stock exchange market responses to macroeconomic fluctuations show deviations between countries in terms of direction, magnitude and duration due to the idiosyncratic characteristics of the countries. The paper empirically searches for the identification of these variations for CEECs, namely Czech Republic, Hungary, Poland, Slovak Republic and also Turkey for the period of December, 1999 to December, 2009. The empirical analyses demonstrate that for each CEEC, stock exchange market responds positively to industrial production and to appreciation of local currency. Czech Republic and Hungary display negative and the rest display positive response to M1, whereas the response of stock market to CB policy rate shows mixed results for each country. Besides, foreign exchange market returns are found to be the variable with the highest significance in explaining the stock exchange market returns. These findings point out to arbitrage opportunities for investors and give insight to Monetary Policy Authorities about the Monetary Transmission Mechanisms of the countries.展开更多
文摘Free trade is beneficial for all nations. Pareto optimality can be reached by trade without barriers, leading to maximizing total welfare of nations involved. Yet there are clear cases of complaining at the World Trade Organization （WTO） in which home bias is plausibly the reason for complaining, rather than objective criteria of the rules of trade agreements. Next to home bias in individual cases induced home bias leading to complaining at WTO might also be a trend. Using correlation and stepwise regression analysis a dataset on 28 complaining countries is analysed. The number of complaints at the WTO is the dependent variable in exploratory modeling. Independent variables are various variables on economic structure. Structural unemployment （SUN）, agricultural import share, current account balance, international property rights （IPR）, and foreign direct investment （FDI） turned out to be significantly related to the number of complaints. This is a strong indicator that complaining at the WTO is at least partly induced by other than objective factors. One of these factors other than objective factors could be considered as an induced home bias which leads to disruptive trade. The established relationship with one of these factors indicates the existence of induced home bias as an actual trend based on the outcomes of the analysis presented.
文摘Stock exchange market responses to macroeconomic fluctuations show deviations between countries in terms of direction, magnitude and duration due to the idiosyncratic characteristics of the countries. The paper empirically searches for the identification of these variations for CEECs, namely Czech Republic, Hungary, Poland, Slovak Republic and also Turkey for the period of December, 1999 to December, 2009. The empirical analyses demonstrate that for each CEEC, stock exchange market responds positively to industrial production and to appreciation of local currency. Czech Republic and Hungary display negative and the rest display positive response to M1, whereas the response of stock market to CB policy rate shows mixed results for each country. Besides, foreign exchange market returns are found to be the variable with the highest significance in explaining the stock exchange market returns. These findings point out to arbitrage opportunities for investors and give insight to Monetary Policy Authorities about the Monetary Transmission Mechanisms of the countries.
