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Investigating the essential impact of the cryptocurrency market on carbon emissions is significant for the U.S. to realize carbon neutrality. This exploration employs low-frequency vector auto-regression (LF-VAR) and mixed-frequency VAR (MF-VAR) models to capture the complicated interrelationship between cryptocurrency policy uncertainty (CPU) and carbon emission (CE) and to answer the question of whether cryptocurrency policy uncertainty could facilitate U.S. carbon neutrality. By comparison, the MF-VAR model possesses a higher explanatory power than the LF-VAR model; the former’s impulse response indicates a negative CPU effect on CE, suggesting that cryptocurrency policy uncertainty is a promoter for the U.S. to realize the goal of carbon neutrality. In turn, CE positively impacts CPU, revealing that mass carbon emissions would raise public and national concerns about the environmental damages caused by cryptocurrency transactions and mining. Furthermore, CPU also has a mediation effect on CE; that is, CPU could affect CE through the oil price (OP). In the context of a more uncertain cryptocurrency market, valuable insights for the U.S. could be offered to realize carbon neutrality by reducing the traditional energy consumption and carbon emissions of cryptocurrency trading and mining.

The novel COVID-19 virus, and the pandemic that has followed its spread, has had a massive impact on the banking industry on a global level. Therefore, considering this context, this study examines the effect of the COVID-19 pandemic on the banking sector’s performance in the Asian emerging economics, over a time span ranging from 2016Q1–2021Q2. For this purpose, this study makes use of the FE, RE, 2SLS, and PPML regression models. The empirical findings show that the GDP and banking size are positively related to bank performance in the pre-COVID era, and the COVID pandemics era thus far in the Asian emerging economies. In addition to this, the findings also reveal that the impact of GDP and bank size on banking performance is lower in the pandemic period, as compared to the pre-COVID period. Furthermore, the results show that the COVID pandemic has significantly affected the banking sector performance in the Asian emerging economies. Findings have also suggested that the central bank should shift their focus on the banking industry in the Asian emerging economies. Various other policy implications have also been suggested under the present study.

The tourism industry carries great significance in the economic development of any country. It has been observed that the COVID-19 crisis has affected global travel and tourism more than any other sector globally as well as in China. The travel restrictions, home isolation, and quarantine orders have given massive damage to China’s once thriving tourism industry. Despite this phenomenal impact, the existing literature has a dearth of empirical studies related to the impact of the COVID-19 pandemic on the tourism industry. This study attempts to reflect a thorough picture of the current scenario and the crisis effects under different intensities reflected through quantiles of Covid-19 related deaths. The study has utilized the QARDL model and the Wald test on the daily time series data of COVID-19 intensity, the real effective exchange rate, oil prices, and the tourism development index from January 1, 2020, to March 15, 2021. The outcomes indicate that COVID-19 related deaths have a negative, but significant impact on China’s tourism in the long run and short run. The oil prices also show a negative influence on tourism in the long run, but there is no significant impact of the oil prices on tourism in the short run. At the same time, the increase in the real effective exchange rates tends to support tourism in the long run, but does not influence tourism development in the short run.

The objective of this study is to empirically assess the effect of government decisions on market growth in response to social distancing initiatives, government reactions, economic support provision, and containment and health responses, to name a few. A panel dataset of daily stock market returns is analysed in this study, changes in COVID-19 cases, and government responses to 17 countries in the Pacific and South Asia from 1st January 2020 to 31st December 2020. Findings indicate that social distancing policies have a significant negative effect on stock returns but a substantial positive impact on market growth when new cases' growth rate declines after accounting for country characteristics and systematic risk due to foreign factors. A direct negative effect is seen almost immediately, and a subsequently indirect positive effect is noted. As expected, policies regarding social distancing have an immediate negative impact, attributed mainly to the expected negative effect on economic activity. Subsequently, we see an indirect positive effect on market return because social distancing measures reduced the growth of confirmed COVID-19 cases. Both awareness, containment, and health index (ACHI) and Income Support and Debt Relief Index (ISDRI) positively affect market growth, as they are perceived to support individuals' socio-economic well-being and mainly result in positive market returns. © 2021 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group.

Most of the member countries of COP21 have been struggling to devise relevant policies in order to control carbon dioxide (CO2) emissions since the Paris agreement in 2015. In our view, without analyzing the role of two extremely important variables i.e., ecological innovation and export diversification, in the whole chain of carbon emissions, expecting significant results from such policies would be far fetched. This study, therefore, is aimed to explore the effect of export diversification (ED) and ecological innovation (EI) on carbon emissions for G-7 countries from 1990 to 2017, along with renewable energy consumption (REC) as an important control variable. The results show that export diversification (ED) increases carbon emissions; however, ecological innovation (EI) helps reduce carbon emissions, and similarly, renewable energy consumption (REC) also controls carbon emissions. More important, however, is the realization that the negative impact of export diversification on the CO2 emissions gets weakened as the degree of environmental innovation increases. Based on our findings, the promotion of renewable energy, along with the adoption of environmentally friendly technology, is strongly recommended for G-7 countries. Our results also highlight that Government policies regarding export diversification (ED), ecological innovation (EI), and renewable energy consumption (REC) approximately take more than a year to be able to deliver the results effectively.

This study considers the price convergence in different regions of China, which is the largest developing country in the world and a country in which the regional difference is much larger between provinces. Whether there is price convergence between regions in one country is an important economic issue according to the Law of One Price (LOP) theory. Compared to previous studies, this article operates with the Sequential Panel Selection Method (SPSM) to explore the non-stationary properties of the LOP in China’s regions. We provide robust evidence to specify that the LOP holds true for two-thirds of the provinces in China, mainly in the Western and Central regions. This means that the Eastern region’s price fluctuation is non-stationary and that the consumer price index (CPI) levels of the Western, Central and Northeastern regions are relatively convergent in China. The conduction path of the CPI level is from the Eastern region to the other regions. It shows that prices can converge with each other by LOP and the values of the same goods in the Western and Central regions are equal and if there is a price difference, then it can be eliminated by interregional trade.

In this paper, we apply a recursive unit root test to investigate whether there exist multiple bubbles in crude oil price. The method is best suited for a practical implementation of a time series and delivers a consistent date-stamping strategy for the origination and termination of multiple bubbles. The empirical result indicates that there exist six bubbles during 1986–2016 when the oil price deviate from its intrinsic value based on market fundamentals. Specifically, oil price contains the fundamentals and bubble components. The dates of the bubbles correspond to specific events in the politics and financial markets. The authorities should actively fight speculative bubbles or just observe their evolutions and speculation activities may decrease, which is favour of the stabilisation of the staple commodities including crude oil price. These findings have important economic and policy implications to recognise the cause of bubbles and take corresponding measures to reduce the impact on the real economy cause of the fluctuation of crude oil price.

This study proposes the Idiosyncratic Adaptive Expectation model based on decision theory to explain how agents incorporate information about the past to form their inflation expectations. The empirical results suggest that both inflation perception and past actual inflation have significant effects on the formation of inflation expectations, and the Idiosyncratic Adaptive Expectation model is valid in capturing the dynamics of inflation expectations. Investigations of demographic groups provide robust supportive evidence for this novel model. The results suggest that agents are more concerned about inflation perception, which is less costly to understand, than about actual inflation, which entails higher costs. Furthermore, the Granger causality test reveals that more heterogeneous inflation perceptions cause statistically higher heterogeneity in inflation expectations. Compared with rational expectation, adaptive expectation, static expectation and idiosyncratic static expectation models, the Idiosyncratic Adaptive Expectation model is better at capturing inflation expectations empirically. The results have implications for macroeconomic modeling, stressing the significance of perceived and expected inflation.

This study uses the Sequential Panel Selection Method (SPSM) proposed by Chortareas and Kapetanios (2009) to investigate the non-stationarity properties of real interest rates in 12 Central and Eastern European (CEE) countries. We are thereby able to test the validity of real interest rate parity (RIRP) among these countries. The SPSM can be used to decompose a panel of real interest rate series into two groups: a group of stationary series and a group of non-stationary series. We identify the stationary processes in the panel and demonstrate that RIRP holds for 10 of the 12 countries studied. Our findings show that real interest rate convergence among these 10 countries exhibits non-linear mean reversion toward RIRP equilibrium. The results have important policy implications for the CEE countries studied.

This study applies the sequential panel selection method (SPSM), proposed by Chortareas and Kapetanios (2009) , to assess the non-stationary properties of the real interest rates relative to China for ten East Asian countries. SPSM can classify the whole panel into a group of stationary series and a group of non-stationary series. We clearly identify how many and which series in the panel are stationary processes and provide robust evidence to indicate that RIRP holds true for five countries. It implies that the choices and effectiveness of the monetary and fiscal policies in the East Asian economies will be highly influenced by external factors originating from China. Also, our findings point out that real interest rate convergence relative to China is mean reverting toward RIRP equilibrium values in a non-linear way.

This study applies the Sequential Panel Selection Method (SPSM) proposed by Chortareas and Kapetanios (2009) to investigate and assess the non-stationary properties of whether real GDP follows a trend stationary or a difference stationary process for Central Eastern European (CEE) countries. SPSM can classify the whole panel into a group of stationary series and a group of non-stationary series. We clearly identify how many and which series in the panel are stationary processes and provide robust evidence clearly indicating that per capita real GDP for CEE countries holds stationary for three countries. Our findings point out their per capita real GDP convergence is a mean reversion towards equilibrium values in a non-linear way. Our results have important policy implications for macroeconomic policy, modeling, testing and forecasting for these CEE countries under study.

Ovaj rad koristi TAR autoregresijski model kojeg su osmislili Caner i Hansen (2001) za istraživanje linearnosti i stacionarnosti njemacke realne tecajne stope u odnosu na njenih 5 zemalja trgovinskih partnera. Donose se dva glavna zakljucka. Prvo, empirijski rezultati ukazuju na to da je njemacki realni tecaj nelinearni proces. Drugo, jedinicni korijen u realnoj tecajnoj stopi je odbacen za vecinu istraženih slucajeva. Takav rezultat snažno podupire paritet kupovne moci za Njemacku u odnosu na njene glavne trgovinske partnere.

This study employs flexible Fourier unit root test proposed by Enders and Lee (2012) to examine the regional differences in life insurance market development in China. We find that property of stationarity for life insurance market development varies across different regions. Specifically, stationarity prevails in provinces with middle and low income, indicating characteristics of convergence and the possibilities to forecast future movements of life insurance activities based on past behavior, while 7 out of 10 provinces in high-income group show non-stationarity, suggesting unbound development in these regions and weak predictability. Justifications for the test results are presented from aspects of development of financial market, market structure of life insurance and business strategy of life insurance companies, and implications for policy-making are also given.

This study applies stationary test with a Fourier function proposed by Enders and Lee (2012) to test the validity of long-run real interest rate parity (RIRP) to assess the non-stationary properties of the real interest rate convergence for twelve Central and Eastern European (CEE) countries. We find that our approximation has higher power to detect U-shaped breaks and smooth breaks than linear method if the true data generating process of interest rate convergence is in fact a stationary non-linear process. We examine the validity of RIRP from the non-linear point of view and provide robust evidence clearly indicating that RIRP holds true for nine CEE countries. Our findings point out that their interest rate adjustment is mean reversion towards RIRP equilibrium values in a non-linear way.

This study sets out with the aim of determining whether there is such a thing as an optimal level of research and development (R&D) intensity within which a firm can effectively maximize its sales growth ratio. We adopt an advanced panel threshold regression model to examine the relationship between R&D intensity and the growth rate in sales based upon data on firms within the electronics industry in Taiwan. The results demonstrate that R&D intensity has a positive impact on sales growth when the level of such R&D intensity is below the threshold value, and a negative impact when the level of R&D intensity is above the threshold value.

This study carries out an examination of the potential non-linear cointegration between the lending and deposit rates of eight Eastern European countries using the non-parametric rank tests proposed by Breitung (2001). Based upon our adoption in this study of the threshold error-correction model (TECM), we find solid evidence of an asymmetric price transmission effect, in both the short term and the long term, between lending and deposit rates. Thus, our results reveal that there are indeed such long-run non-linear cointegration relationships between the lending and deposit rates in these Eastern European countries. Furthermore, we go on to successfully capture the dynamic adjustment of the spread.

In this study, we use panel cointegration methods to investigate the relationship between stock prices and earnings-per-share (EPS). Furthermore, we consider whether stock prices respond to EPS under the different level of growth rate of operating revenue. The empirical result indicated that the cointegration relationship existed between stock prices and EPS in the long-run. Furthermore, we found that for the firm with a high level of growth rate, EPS has less power in explaining the stock prices however, for the firm with a low level of growth rate, EPS has a strong impact in stock prices.

In this study, we use the newly developed momentum threshold unit root and cointegration tests advanced by Enders and Granger (1998), and Enders and Siklos (2001) to investigate if there is any asymmetric adjustment in long-run prices and dividends in Taiwan¡¦s stock market during June 1991 to February 2005. The empirical results indicate that long-run prices and dividends cointegration relationship holds for the majority of Taiwan¡¦s stock market, but that adjustment mechanism is asymmetric. The results for most industries from the M-TAR cointegration tests attest to the absence of rational bubbles in Taiwan¡¦s stock market. These results have important policy implications for investors.

In this study, we revisit the issue as to the presence of rational bubbles in the Taiwan stock market during the June 1991 to February 2005 period using the Bierens (1997) nonparametric cointegration tests. The results from the Bierens nonparametric cointegration test attest to the absence of rational bubbles in the Taiwan stock market.

In this study, we apply the Sequential Panel Selection Method (SPSM), pro- posed by Chortareas and Kapetanios (Journal of Banking and Finance 33:390–404, 2009), to investigate and assess the non-stationary properties of the real interest rate parity (RIRP) for fourteen Latin American countries. Utilizing the SPSM, we can classify the entire panel into a group of stationary series and a group of non-stationary series. We clearly identify how many and which series in the panel are stationary processes and provide robust evidence that clearly indicate RIRP holds true for ten countries. Our findings note that these countries’ real interest rate convergence is a mean reversion toward RIRP equilib- rium values in a non-linear way. Our results have important policy implications for these Latin American countries under study. info:eu-repo/semantics/publishedVersion

This study applies the threshold autoregressive model proposed by Caner and Hansen (2001) to examine both linearity and stationarity of Germany’s real exchange rate vis-à-vis her 5 trading partner countries. Two main conclusions are drawn. Firstly, the empirical results indicate that Germany’s real exchange is a nonlinear process. Secondly, a unit root in real exchange rate was rejected for most of the cases under study. This result provides strong support for purchasing power parity for Germany relative to their major trading partner countries., Ovaj rad koristi TAR autoregresijski model kojeg su osmislili Caner i Hansen (2001) za istraživanje linearnosti i stacionarnosti njemačke realne tečajne stope u odnosu na njenih 5 zemalja trgovinskih partnera. Donose se dva glavna zaključka. Prvo, empirijski rezultati ukazuju na to da je njemački realni tečaj nelinearni proces. Drugo, jedinični korijen u realnoj tečajnoj stopi je odbačen za većinu istraženih slučajeva. Takav rezultat snažno podupire paritet kupovne moći za Njemačku u odnosu na njene glavne trgovinske partnere

Statement of Retraction (Zb. rad. Ekon. fak. Rij. • 2012 • vol. 30 • sv. 2 • 219-219, http://www.efri.uniri.hr/dokumenti/zbornik-2012-2-retraction.pdf): This is to notify our respectful reading public that the Editorial Board of the journal Zbornik radova Ekonomskog fakulteta u Rijeci, časopis za ekonomsku teoriju i praksu/ Proceedings of Rijeka Faculty of Economics, Journal of Economics and Business has retracted the following article from publication: “Flexible Fourier Stationary Test in GDP per capita for Central Eastern European Countries“, by Hsu-Ling Chang, Chi-Wei Su, Meng-Nan Zhu, published in our journal Zbornik radova Ekonomskog fakulteta u Rijeci, časopis za ekonomsku teoriju i praksu/ Proceedings of Rijeka Faculty of Economics, Journal of Economics and Business, 2011, vol. 29 (1), pp. 51-63 and almost concurrently published in the journal Eastern European Economics, 2011, vol. 49 (3), pp. 54-65. Being in contact with Josef C Brada, Professor Emeritus, Editor of the journal Eastern European Economics (EEE), we realized that the paper had been sent to both journals, although first published in the EEE and then in our Journal. According to professor Brada’s and our analysis, the paper published in these two journals is exactly the same, except for minor differences in wording, most likely due to editing the text before publication. The outstanding differences are in the title and the fact that the paper published in our Journal has three authors and in EEE journal has two. Whatsoever, owing to the fact that the article had been sent to both journals almost at the same time, it had been impossible to find out the case during the review procedure. Due to this unpleasant situation, our Editorial Board would like to inform our valuable readers that all the necessary measures to retract the paper from our publication have been undertaken and according to publishing ethical principles, cooperation with the authors of the retracted paper have been stopped. Although, in this case neither EEE nor our Journal had any chance to envisage and prevent this double publication in time, we do ask our readers to accept our deepest apology. Ivo Sever, PhD Editor- in- Chief, Statement of Retraction (Zb. rad. Ekon. fak. Rij. • 2012 • vol. 30 • sv. 2 • 219-219, http://www.efri.uniri.hr/dokumenti/zbornik-2012-2-retraction.pdf): Želimo obavijestiti poštovane čitatelje da je Urednički odbor časopisa Zbornik radova Ekonomskog fakulteta u Rijeci, časopis za ekonomsku teoriju i praksu/ Proceedings of Rijeka Faculty of Economics, Journal of Economics and Business povukao sljedeći članak iz publikacije: “Flexible Fourier Stationary Test in GDP per capita for Central Eastern European Countries” grupe autora Hsu-Ling Chang, Chi-Wei Su, Meng-Nan Zhu, objavljenog u našem časopisu Zbornik radova Ekonomskog fakulteta u Rijeci, časopis za ekonomsku teoriju i praksu/ Proceedings of Rijeka Faculty of Economics, Journal of Economics and Business, 2011, vol. 29 (1), str. 51-63 i gotovo istovremeno u časopisu Eastern European Economics, 2011, vol. 49 (3), str. 54-65. U kontaktu s urednikom časopisa Eastern European Economics (EEE), profesorom Josefom C Bradom otkrili smo da je spomenuti članak istovremeno poslan u oba časopisa, s tim da je prije objavljen u EEE, a potom u našem časopisu. Zajedničkom analizom s profesorom Bradom, ustanovili smo da se radi o potpuno istom članku ako se izuzmu neznatne razlike vjerojatno nastale tijekom uredničke obrade prije objavljivanja. Nadalje, jedina uočljiva razlika je u naslovu i u činjenici da su u našem časopisu navedena tri autora, a u EEE-u dva. Ovdje želimo napomenuti da je sama činjenica istovremenog prosljeđivanja članka u oba časopisa dovela do nemogućnosti detektiranja tog slučaja za vrijeme postupka recenzije. Urednički odbor želi obavijestiti svoje uvaženo čitateljstvo da smo poduzeli sve potrebne mjere da se objavljeni članak povuče iz publikacije prema svim etičkim načelima uz napomenu da je svaka daljnja suradnja s autorima članka prekinuta. Iako u ovom slučaju ni EEE niti naš časopis nisu imali mogućnost spriječiti dvostruko objavljivanje, upućujemo svojim čitateljima duboku ispriku. Prof.dr.sc. Ivo Sever Glavni i odgovorni urednik

This study applies non-linear threshold unit-root test to investigate the non-stationary properties of the uncovered interest parity (UIP) with risk premium for ten Central and Eastern European (CEE) countries. We find that non-linear threshold unit-root test has higher power than linear method suggested by Caner and Hansen (2001) if the true data generating process of risk premium convergence is in fact a stationary non-liner process. We examine the validity of UIP from the non-linear point of view and provide robust evidence clearly indicating that UIP holds true for seven countries. Our findings point out that capital mobility and exchange market efficiency are in these CEE countries with non-linear way.