How markets will drive the transition to a low carbon economy

This paper investigates the driving factors behind the transition to a low carbon economy. Here, we offer a two-part analysis: First, we examine the factors leading to the current level of cleantech development. To do so, we examine the impact of country-level economic variables (real GDP, market return, and turnover) and country-level institutional variables on patent intensity. Results from this analysis show that cleantech patenting activity is fostered by a supportive institutional environment that promotes innovation and low-carbon development through carbon pricing policies, country-level public R&D expenditure and human capital. Second, we extend the notion of ‘path creation’ to map out different pathways for cleantech development on a country-level within a real options framework, and offer a corresponding valuation of cleantech patents. Our estimates of total wealth creation through the development of cleantech patents by 2050 range from US$10.16 to US$15.49 trillion dollars (13%–20% of the world GDP in 2017) with investment growth from US$2.93 to US$3.71 trillion (3.7%–4.7% of the world GDP in 2017). The results from our analysis suggest that market forces will drive the transition to a cleantech economy.     

Relationship between city size and firm productivity – A new interpretation using the Chinese experience

This paper contributes to the literature on the relationship between city size and firm productivity by focusing on agglomeration, selection (market competition), and sorting (presence of firms with diverse productivity) effects using Chinese firm-level data for 1998–2013. Contrary to the existing literature, our parametric regression estimates from nearly two million firms show that when the selection effect is controlled, productivity advantage in big cities is reversed. This outcome is explained through a quantile regression showing the existence of left-sided sorting (inefficient firms sort themselves to larger cities) in big cities which is not captured in existing empirical literature. We further find that (1) left-sided sorting is stronger in exporters than non-exporters; (2) is also generated mainly in enterprises with high asset-liability ratios; and (3) selection has a positive effect on firm productivity, suggesting that market competition is key in an explanation of the rapid growth of big cities in China.     

Can governance help in making an IPO “successful”? New evidence from Europe

This paper investigates the determinants of a “successful” IPO from a corporate governance perspective upon a representative sample of European listings from 2000 to 2015. We use an extensive dataset of market performance, financial data, and corporate governance characteristics to run the investigation. Differently from previous studies, our analysis embraces both a short‐term perspective and a medium–long‐term perspective, where the board of directors seems to perform different tasks, moving from a value creation to a value protection strategy. Among the others, we find that board size, board independence, and their qualifications, together with their experience in other boards, are associated with a positive performance of the IPO in a short‐term horizon and in the medium–long‐term period, although significant differences emerge among those time perspectives.     

Identifying and addressing land governance constraints to support intensification and land market operation: Evidence from 10 African countries

Beyond concerns about agricultural productivity growth, issues of land governance have attracted global interest as demand for land acquisition by outsiders has increased rapidly but most of the transfers failed to live up to expectations and instead disrupted local livelihoods. We use the land governance assessment framework to identify key conceptual issues and identify how land governance in 10 African countries compares to global good practice. Results point towards weak protection of rights in practice, large gaps in female land access, and limited outreach and effectiveness of institutions to record rights and adjudicate disputes. We note that programs to improve performance along these lines had significant impact in other contexts, suggesting that efforts to improve land governance will be warranted and should be closely monitored and evaluated in an effort to identify models suited to African conditions and assess their impact and interaction with other factor markets.     

中国企业的出口市场选择：事实与解释

本文基于2000~2006年中国海关数据库企业 出口市场对的贸易数据,采用条件Logit模型考察中国企业出口市场选择的空间模式。结果表明,中国企业的出口市场选择受企业以往出口经验的影响,存在明显的路径依赖。企业倾向于选择与老出口市场地理邻近或文化相似的出口市场建立新贸易关系,尤其是与前者。其中,外资企业和加工贸易企业的出口市场选择更加依赖于新老出口市场间的各种相似性关系。这提醒我们,企业应充分利用自身的出口经验,尤其是成功的出口经验在相似出口市场间的溢出效应以加强新市场开拓的针对性和有效性,形成结构合理的贸易网络以稳定出口。     

Political markets? Politics and economics in the emergence of markets for biodiversity offsets

This paper analyses the relationship between politics and performativity of economics in the emergence of markets for biodiversity offsets. While the role of economics in constructing markets has been demonstrated by sociology and social studies of science, it has also become apparent that politics plays an important role in the material outcome of economic experiments. Two case studies of the creation of markets for biodiversity offsets are analysed, in the United States and England. The findings suggest that the creation of both markets is rooted in the language, concepts and models of economics. Politics, on the other hand, functions as a mediator of the material expression of those models. Through this mediation effect, similar economic models are performed differently, resulting in a variety of markets. This suggests that the material outcomes of processes of market creation are not defined at the outset, but can be influenced by political processes.     

全球股票市场间风险传染的测度、监管及预警

近年来,伴随金融一体化程度的加深,全球各股票市场间风险传染的动态复杂性加剧,其准确测度、高效监管及实时预警已成为优先事项。本研究选取全球21个代表性股票市场作为分析样本,首先基于广义向量自回归模型的滚动估计准确测度其间风险动态传染的高维网络序列,进一步借由矩阵值因子模型来稳健收缩上述序列,以探究其潜在动态核心结构,从而实现高效监管。最后,通过向量自回归模型的预测功能实现对全球股票市场间风险传染的实时预警。研究表明,全球股票市场间风险传染具有时变性,其监管与预警可通过少数与地理区域高度相关的风险区域间的动态传染关系及内部的市场构成来刻画。与此同时,我们发现中国内地等新兴市场的重要地位逐渐凸显。本文研究结论可为有效防范与化解金融风险提供有益参考。     

Land-property markets and planning: A special case

Land use policy often intervenes in land-property markets. This raises a question that may have critical implications for land use policy: are these normal markets? This paper addresses that question: are land and property ordinary market goods, or do they lack some of the preconditions necessary for markets to work properly? We find that land-property has limited substitutability, due to the critical factor of location; qualified by location, land is limited and sometimes unique. These attributes make land and property investment assets risking speculation, warranting public intervention to mitigate negative social consequences. Land-property markets need market or administrative support to work, which planning provides through public and private agents. The paper reviews the different forms of planning and development control in land-property markets.     

Corporate Name Change and the Market Valuation of Firms: Evidence from an Emerging Market

Investors’ responses to a firm’s name change and the determinants of their response are scantly explored areas in the field of behavioral finance. Based on a sample of 415 Indian firms from 2005 to 2014, this study suggests that investors respond positively to the announcement of firm name changes. Furthermore, the study indicates that when firms do not indicate geographical specificity in the name and have a specific rather than generic name, then the firm will experience greater abnormal returns. Also, when firm names are fluent and are associated with the owner’s family name, again, abnormal returns generated are positive. Nevertheless, as a firm ages and investors gain more information about it, then abnormal returns due to name change decrease.     

How are Africa's emerging stock markets related to advanced markets? Evidence from copulas

The finance literature provides ample evidence that diversification benefits hinges on dependence between assets returns. A notable feature of the recent financial crisis is the extent to which assets that had hitherto moved mostly independently suddenly moved together resulting in joint losses in most advanced markets. This provides grounds to uncover the relative potential of African markets to provide diversification benefits by means of their correlation with advanced markets. Therefore, we examine the dependence structure between advanced and emerging African stock markets using copulas. Several findings are documented. First, dependence is time-varying and weak for most African markets, except South Africa. Second, we find evidence of asymmetric dependence, suggesting that stock return comovement varies in bearish and bullish markets. Third, extreme downward stock price movements in the advanced markets do not have significant spillover effects on Africa’s emerging stock markets. Our results, implying that African markets, with the exception of South Africa, are immune to risk spillover from advanced markets, improves the extant literature and have implications for portfolio diversification and risk management.