Purpose The purpose of this paper is to investigate the long-run equilibrium relationship between developed, emerging and frontier markets of the Asia-Pacific region during January 2000 to June 2016. Design/methodology/approach Zivot and Andrews’ unit root test is used to examine the existence of unit root in index series in the presence of a structural break. Gregory and Hansen’s test of cointegration is employed to examine the stable long-run relationship between the indices under study. Findings The results suggest that the emerging markets of China and Thailand and the frontier markets of Sri Lanka and Pakistan are fairly segmented from most of the markets in the Asia-Pacific region. Hence, these markets provide good diversification opportunities to global investors. Bidirectional cointegration analysis indicates that emerging and frontier markets influence developed markets. Hence, it can be inferred that the de facto position that only bigger markets influence small markets no longer holds true in the current environment. Practical implications The findings of this study will provide valuable inputs to global investors for creating an optimal investment portfolio. Originality/value This study does a comprehensive examination of market integration in the Asia-Pacific region. It also contributes to the thin body of work done on frontier markets. Unlike past studies, this paper analyzes the bidirectional cointegration relationship to examine if the notion that only bigger markets influence smaller markets holds true or not. Finally, this study employs advanced techniques of unit root test and cointegration test that consider structural breaks in the models.
International investors are increasingly attracted towards emerging and frontier markets because of their potential to enhance diversification benefits of a global portfolio. This calls for a rigorous analysis of the nature and determinants of stock market comovement between developed, emerging, and frontier markets in Europe and Asia-Pacific regions. The findings suggest that unlike their Asia-Pacific counterparts, European developed, emerging, and frontier stock markets display a higher degree of comovement. Although Asia-Pacific frontier markets provide good diversification opportunities, investors must be cautioned against their weak financial system. The volatility of returns, gross domestic product growth rate, and the 2008 global financial crisis (GFC) are the key determinants of stock market comovement in Europe. The mechanisms by which comovement in the Asia-Pacific region is strengthened differ across markets. Comparative analysis of comovement and its determinants across different classes of equity markets and geographies is expected to provide valuable perspectives to global investors, portfolio managers, and policymakers.
<p>The effect of temperature modulation on the onset of Darcy ferroconvection in a horizontal porous layer heated from below is investigated. The analysis is based on the assumption that the amplitude of the temperature modulation is small enough compared with the imposed steady temperature difference. The effect of the oscillating temperature field is treated by a perturbation expansion in powers of the amplitude of the applied field. The effect of magnetic parameters, Vadasz number and temperature modulation in the cases of symmetric, asymmetric and bottom wall modulation, were discussed. The study divulges that subcritical motion exists for symmetric temperature modulation for low frequency. In the case of asymmetric and bottom wall modulation only supercritical motion exists.</p>
The study models inter-relationship among key enablers that influence the growth of FinTechs that offer credit services to small and medium enterprises (SMEs). It focuses on emerging market of India, which is the world's third-largest FinTech centre. It employs Grey DEMATEL method to measure the cause-effect relationship based on the assessment given by FinTech practitioners, experts, policymakers, and investors. The results show that credit demand by SME borrowers, availability of alternate data sources, and Covid-19 are the critical enablers that exercise strong impact on FinTech system. Collaboration between FinTechs and traditional financial institutions, end-to-end financial solutions, and scalability of business operations are recognized as critical dependents that are hugely affected by others. The study recommends policymakers to foster collaborative environment, strengthen digital data landscape, and improve financial literacy to develop FinTech sector. It recommends practitioners to focus on data security and to offer end-to-end financial solutions to its SME borrowers.
<p>The classical linear stability analysis is used to examine the effect of thermal radiation on the onset of Darcy-Brinkman ferroconvection. The boundaries of the fluid layer are treated as black bodies and the optical properties of the transparent ferromagnetic fluid are independent of the wave length of radiation. The fluid and solid matrix are assumed to be in local thermal equilibrium. Considering realistic boundary conditions, the principle of exchange of stabilities is shown to be valid and the critical values pertaining to the stationary instability are obtained by means of the higher order Galerkin method. It is observed that the basic temperature profile turns out to be exponential and symmetric as the radiative parameters increase and that the effect of thermal radiation is to delay the onset of Darcy- Brinkman ferroconvection. The destabilizing influence of magnetic forces is affected by the radiative parameters. The effect of magnetic, radiative and porous parameters on the convection cell size is also discussed.</p>
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