Financial-integration thresholds for consumption risk-sharing

Malik, Samreen

doi:10.1016/j.iref.2015.01.004

Cited by 10 publications

(10 citation statements)

References 26 publications

(42 reference statements)

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“…In turn, equity investment and foreign direct investment (FDI) appear to have modestly favorable effects on risk sharing for industrialized countries in a period of financial globalization (starting in 1987). Applying threshold analysis to more than 60 countries from the 1980s to 2000s, Malik (2015) shows that risk-sharing is negligible for low levels but significant for high levels of financial integration.…”

Section: Estimation Approachmentioning

confidence: 99%

Temporal and Spatial Dependence of Interregional Risk Sharing: Evidence From Russia

Fidrmuc

Degler

2019

Macroecon. Dynam.

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We present an analysis of interregional consumption risk sharing in Russia between 1999 and 2009 using novel estimation methods. In addition to standard fixed-effects panel estimations, we use system and difference GMM estimators to reflect time dynamic properties and possible endogeneity between output and consumption. Furthermore, we apply spatial models that control for spatial dependence across regions. The results show that regional consumption deviations from the national average are highly persistent in time and space. Nevertheless, the regional consumption risk sharing in Russia is relatively high with 70%–90% of idiosyncratic risk being smoothed. Finally, fiscal policy and the degree of financial development appear to contribute to the consumption smoothing.

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Section: Estimation Approachmentioning

confidence: 99%

Temporal and Spatial Dependence of Interregional Risk Sharing: Evidence From Russia

Fidrmuc

Degler

2019

Macroecon. Dynam.

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“…In contrast, digital finance has more than a simple linear impact on the income distribution of the population, but there are some nonlinear features such as threshold characteristics [ 11 , 12 ]. Since digital technologies that drive inclusive financial development have thresholds such as infrastructure, practical application, and institutional environment, the existence of threshold effects allows digital economic growth to have different impacts on income distribution in other regions and financial exclusion [ 13 – 15 ].…”

Section: Introductionmentioning

confidence: 99%

Has digital finance widened the income gap?

Yao

2022

PLoS ONE

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Using the statistical data of 280 prefectural-level cities in China from 2011 to 2020, this paper empirically tests the relationship between digital finance and residents’ income in a linear and nonlinear model based on the G-J model theory, respectively. The study aims to discuss and analyze the impact of digital finance development on income distribution in the context of the current situation of digital finance development in China and further explore how to make digital finance better regulate the income distribution of residents. The innovation of this paper is to use two nonlinear methods to verify the Kuznets effect and threshold characteristics of digital financial development affecting the income distribution of residents based on linear analysis and explore the relationship between n digital economic development the current income gap more comprehensively. The study shows a Kuznets effect of digital finance development on the income distribution of Chinese residents. Thus, most regions in China have not yet crossed the inflection point of the bell-shaped curve, and the income gap within areas will continue to increase with the development of digital finance. By constructing a threshold model, it is found that the positive effect of digital finance on income disparity may initially increase with the increase of regional economic level. Still, when the regional economic development reaches a higher stage, the effect will tend to fall back. As a result, the negative impact of digital finance development on residents’ income distribution will be significantly reduced at that time.

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“…Over the past three decades, there has been a rapid and intense global financial integration process, especially for emerging and developing economies (Lane and Milesi-Ferretti 2007, Vo and Daly 2007, Gehringer 2015, Malik 2015, Ahmed 2016. From a theoretical viewpoint, such financial integration should promote international consumption risk-sharing and, thereby, enhance production specialization, capital allocation, and economic growth (Obstfeld 1994, Acemoglu andZilibotti 1997).…”

Section: Introductionmentioning

confidence: 99%

“…This means that researchers often neglect a possible nonlinear relation between these variables because the traditional Granger causality test, designed to detect linear causality, is ineffective in uncovering certain nonlinear relations (Baek andBrock 1992, Hiemstra andJones 1994). Recent empirical evidence, however, suggests that this relation is very likely to be nonlinear in that the growth effect of financial integration may vary under alternative economic or financial conditions (Kose et al 2011, Friedrich et al 2013, Malik 2015. In a number of earlier empirical studies, this type of nonlinear behavior has been parsimoniously captured by panel threshold regression models (Chen and Quang 2014).…”

Section: Introductionmentioning

confidence: 99%

Causal Nexus between Financial Integration and Economic Growth : Does Nonlinearity Matter?

Saafi

Mohamed

Doudou

2016

Journal of Economic Integration

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Empirical studies that rely on a linear framework typically fail to find evidence of a causal link between financial integration and economic growth. In this study, we extend the analysis by applying both linear and nonlinear Granger-causality tests to data for 19 emerging and developing countries. Consistent with previous research, the linear causality analysis reveals only weak causal linkages between financial integration and economic growth. In contrast, the nonlinear causality analysis provides evidence of significant nonlinear causality in 18 out of 19 countries. The growth hypothesis holds true for Argentina, Bolivia, Colombia, Morocco, Tunisia, and Venezuela whereas a reverse relation was found in Brazil, Chile,

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Financial-integration thresholds for consumption risk-sharing

Cited by 10 publications

References 26 publications

Temporal and Spatial Dependence of Interregional Risk Sharing: Evidence From Russia

Temporal and Spatial Dependence of Interregional Risk Sharing: Evidence From Russia

Has digital finance widened the income gap?

Causal Nexus between Financial Integration and Economic Growth : Does Nonlinearity Matter?

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