• International Area Studies Review
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• v.14 no.3
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• pp.3-33
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• 2010

While new evidence on international spillover effects has been widely discussed around the globe, the MENA (Middle East and North African) region has received little attention concerning international transmission of stock market movements. In this paper, we discuss international spillover effects between the major developed markets (US, Japan and Germany) and the emerging markets in the MENA region (Turkey and Egypt). While GARCH-type models have mainly been used to investigate international stock market spillovers in much of previous studies, we develop new testing strategies based on discrete wavelet decomposition. The basic finding is that price as well as volatility spillover effects exist from the developed stock markets to the MENA counterparts, although evidence for price spillover to the Egyptian market is rather weak. As for the interdependence of the major MENA stock markets, no spillover effects are found between these markets, while the two MENA markets are somewhat related with each other.

• International Area Studies Review
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• v.15 no.3
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• pp.29-53
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• 2011

This paper studies the contribution of imports and inward foreign direct investment (FDI) as a vehicle of technology transfer onto the EU new member states at both macroeconomic and industry level. The paper takes the effectiveness of the recipient's utilization into account by constructing a new index, the so-called Effective Absorption (EA) Index, to measure ability to absorb and utilize the foreign technology in the recipient country. Using data from 12 donors and 10 recipients from 1998 to 2009, the study at macroeconomic level indicates that technical spillovers of foreign research and development (R&D) play more crucial role relatively to domestic R&D on total factor productivity (TFP) growth of the new member states. Imports are found as the major vehicle of technical spillovers rather than inward FDI. The study at industry level is conducted by using data from 17 manufacturing industries of 10 donors and 6 recipients during 1998 to 2009. The empirical results also support the findings at country level. The patterns of technology transfer are different across industries. Nonetheless, technical spillovers exhibit significantly high contribution on TFP growth in high-tech manufacturing industries.

• Journal of Arbitration Studies
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• v.18 no.3
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• pp.71-89
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• 2008

International technology transfer(ITT) or technology trade is a very comprehensive term covering various mechanisms and channels for shifting technologies across borders. Thus, it refers to numerous complex processes, ranging from innovation and international marketing of technology to its absorption and imitation. It includes technology, trade, and investment. Markets for exchanging technologies are inherently subject to failure due to appropriability problems, spillovers, asymmetric information, and market power. Thus, there is strong justification for public intervention. Technology developers are interested in reducing the costs and uncertainty of making transfers, along with protecting their rights to profit from such transfers. On the other hand, technology importers are interested in acquiring knowledge at minimal costs, asking for restricting sharply the exclusive rights of foreign firms to exploit technology. The purpose of this paper is to review the characteristics, risks, legal issues and contractual check points of ITT, focusing on the avoidance of commercial disputes during the very complex processes of ITT.

• East Asian Economic Review
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• v.22 no.3
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• pp.243-273
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• 2018

A consequence of global trade liberalization is that domestic regulatory policies have become a focal point for efforts to reduce the costs of engaging in cross-border production and exchange. This article discusses the general challenges of reducing trade frictions created by regulatory differences, focusing specifically on the role trade agreements might play in addressing regulatory spillovers. A case is made for a greater focus on plurilateral cooperation under the umbrella of the WTO.

• East Asian Economic Review
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• v.25 no.2
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• pp.151-174
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• 2021

This paper empirically examines whether and how inward foreign direct investment (FDI) affected industrial productivity in Korea during the 2000-2016 period, based on dynamic panel data of inflow FDI on an arrival basis from 427 manufacturing industries. The paper adds to the literature by analyzing whether both technology spillovers and industrial restructuring from inward FDI can differ according to industrial characteristics such as capital intensity, imported intermediate inputs, and tariffs. The empirical results show that the overall effects of inward FDI on total factor productivity (TFP) were statistically insignificant in general. However, the positive effects of inward FDI on productivity became statistically significant for industries with lower tariffs. Capital intensity were not involved in the relationship between inward FDI and productivity. Thus, the paper highlights that the results in previous studies with inward FDI on a notification basis were overestimated and inward FDI policies in Korea should focus on channels such as trade liberalization and the redistribution of production factors rather than capital accumulation.

• International Area Studies Review
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• v.20 no.1
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• pp.3-22
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• 2016

In this study, I examine mutual shock spillover effects among interest rate differences, won-dollar foreign exchange change rates, and stock market returns in Korea during the daily sample period from the beginning of 1995 to the October 16, 2015, using the multivariate GARCH (generalized autoregressive conditional heteroscedasticity) BEKK (Baba-Engle-Kraft-Kroner) model framework. Major findings are as follows. Throughout the 6 model estimation results of variance equations determining return spillovers covered from symmetric and asymmetric models of total sample period and two crisis sub-sample periods composed of Korean FX Crisis Times and Global Financial Crisis Times, shock spillovers are shown to exist mainly from stock market return shocks. Stock market shocks including down-shocks from the asymmetric models are shown to transfer to those other two markets most successfully. Therefore it is most important to maintain stable financial markets that a policy design for stock market stabilization such as mitigating stock market volatility.

• Journal of Korea Trade
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• v.23 no.5
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• pp.118-128
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• 2019

Purpose - This paper examines the international R&D contest in which the extent of intellectual property right (IPR) affects both the size of prize for the winning firm and the extent of positive spillover through cost of firms. Recognizing the possibility of incomplete protection of IPR, the present paper analyzes the effect of changes in the extent of IPR on payoffs to firms and social welfare. Design/methodology - This paper examines coordination of IPRs by countries in economic integration. The paper then develops a general model of international R&D contest with incomplete protection of IPR. An increase in the extent of IPR augments the share of the prize the winning firm can appropriate, while decreasing the positive cost externality. To derive sharper results, the paper considers the cases of linear and fixed spillovers. Findings - Under plausible assumptions, an increase in the IPR augments the payoff to each firm and the aggregate payoffs as well. The paper also shows that the number of firms participating in the R&D contest can be endogenously determined in the two-stage R&D contest. The higher the extent of cost spillover, and the larger the effective prize, the more firms participate in the international R&D contest. Originality/value - Existing studies assume that firms winning the R&D contest enjoy perfect IPR to the output of their R&D activities. This is a very restrictive assumption in that other firms can copy the new products or processes. By allowing for the incompleteness of the IPR, the present paper develops a more realistic model of R&D contest. The novelty of the present paper is to allow for the possibility that the higher extent of IPR increases the prize and decreases positive cost externality at the same time. The findings of the present paper can serve as a basis for government policy toward R&D activities of firms and protection of IPRs.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.8
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• pp.297-309
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• 2021

In this study, to capture the skewness and kurtosis detected in both conditional and unconditional return distributions of the stock markets of Kazakhstan and Russia, two versions of normal mixture GARCH models are employed. The data set consists of daily observations of the Kazakhstan and Russia stock prices, and world crude oil price, covering the period from 1 June 2006 through 1 March 2021. From the empirical results, incorporating the long memory effect on the returns not only provides better descriptions of dynamic behaviors of the stock market prices but also plays a significant role in improving a better understanding of the return dynamics. In addition, normal mixture models for time-varying volatility provide a better fit to the conditional densities than the usual GARCH specifications and has an important advantage that the conditional higher moments are time-varying. This implies that the volatility skews implied by normal mixture models are more likely to exhibit the features of risk and the direction of the information flow is regime-dependent. The findings of this study contain useful information for diverse purposes of cross-border stock market players such as asset allocation, portfolio management, risk management, and market regulations.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.8
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• pp.109-121
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• 2022

The study empirically examines the horizontal spillover effects of foreign direct investment (FDI) on the productivity of Indian pharmaceutical firms. Robust least squares and the Generalized Method of Moments estimators are applied for the firm-level panel data of Indian pharmaceutical companies whose shares were traded on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). The information was collected from the Centre for Monitoring Indian Economy (CMIE) Prowess database from 2015 to 2019. Based on the regularity in data availability, the sample firms are limited to 112 companies, 100 of which are domestic firms and 12 international firms. Firms with more than 10 percent foreign equity are classified as FDI firms, while those with less than that are classified as domestic firms. Estimation results show that foreign ownership does not contribute to the productivity of domestic firms. Due to increased competition, the Indian pharmaceutical companies with foreign equity participation are not more productive than local ones. Moreover, the findings reveal a negative and insignificant horizontal spillover effect from FDI on the productivity of domestic enterprises. The absence of horizontal spillovers may be attributable to foreign enterprises' ability to prevent technological outflow to competitors in the same industry.

• International Area Studies Review
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• v.22 no.4
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• pp.3-18
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• 2018

In this study, I examined capital market shock reaction effects of 29 OECD countries with the past 24 years sample period consisting of daily stock market return using T-GARCH model focused on volatility feedback hypothesis. US daily stock market return is used as a unique independent variable in this model in consideration of its characteristics of biggest market share and as an origin country of Global Financial Crisis. As a result, France, Finland, and Mexico in order are shown to be the strongest countries in the aspect of return spillovers from US. Canada, Mexico, and France are shown to be the highest countries in the aspect of explanatory power of model. The degrees of shock reaction are proved to be higher in order in Germany, Chile, Switzerland, and Denmark and those of downside shock reaction are seen higher in order in Greece, Great Britain, Australia, and Japan. Canada and Mexico belonging to NAFTA are shown to be higher in the return spillover from US and in the model explanatory power, but they are shown to be lower in the impact of shock reaction, suggesting that regional distance effect or gravity theory cannot be applied to financial spillovers any longer. In the analysis of subsample period of Global Financial Crisis, north American three countries do not show any consistent results as in the full sample period but shock reaction in the European countries are shown to record stronger, suggesting that shocks from US in the Crisis Times are transferred mainly to European region.