Impact of the Emerging Financial Holding Company Model on Small Business Borrowers' Financial Welfare: Contemporary Evidence from Nigeria Based on the Monti‐Klein Approach

This study exploits the adequacy of the Monti‐Klein model to analyse the banking firms' lending behaviour and uses the geometric lag analytic model to detect the lifespan of bank conglomeration impacts on small business financial welfare. We find that, although the impact of emerging conglomerate banks on lending to small businesses is significantly negative (δ = ?0.6897; p < 0.01), the effect reverses to a pre‐conglomerate positive status within one year. Hence, bank conglomeration does not negatively affect the financial welfare of small business borrowers in the long run. Contrary to the widespread belief and fear, the negative effects are not permanent. Large banks are feared to have no time for mid‐sized businesses. We find, however, that mere increases in size, as may be caused by economic or internal growth, do not pose a threat to small businesses. Large‐sized banking firms positively and significantly correlate with small and predictable risks (δ = 1.7935; p < 0.01). Hence, contrary to what regulators fear, there is no real issue surrounding the idea that building diversifying banks will influence small business loans negatively. What matters is the means through which large banks emerge. Therefore, regulators ought to exercise caution so that they do not discourage their emergence.     

Regionalism: An Overview

Regional trading arrangements are proliferating. This overview considers some of their implications. Section I reviews the paradigm of traditional trade theory which emphasizes the "second best" nature of these arrangements. It also evaluates the conditions under which they are permitted by the GATT. Section II notes that these arrangements increasingly move beyond simply removing internal border barriers toward deeper forms of integration involving common behind-the-border policies and systems of governance. Taking account of these aspects of the arrangements requires a different analytic paradigm, which evaluates these arrangements as an alternative to national governance rather than simply as a means of liberalizing trade. Section III considers existing and emerging regional arrangements in Europe, North America, and Asia in light of these paradigms. J. Japan. Int. Econ., Dec. 1994, 8(4), pp. 365–387. John F. Kennedy School of Government, Harvard University, and National Bureau of Economic Research, Cambridge, Massachusetts; and Brookings Institution, Washington, DC.     

Rankings Methodology for International Comparisons of Institutions and Individuals: an Application to Economics in Australia and New Zealand

Abstract.  The objectives of this paper are threefold. First, we critically survey and analyse the different methodologies that have been adopted in the rankings literature. Second, using journal articles included in the ECONLIT database and on the basis of two criteria – one based on citations and the other on perceptions of journal quality, we rank economics teaching departments in Australia and New Zealand for 1988–2002 and 1996–2002 and for individual academic economists for the periods 1988–2002, 1988–1995 and 1996–2002. Furthermore, we identify individual star performers and recognize them in a designated 'Hall of Fame' for 1988–2002. Third, our methodology enables us to make international comparisons on total and per capita bases. Previous multi-country ranking studies in economics do not rank economics departments. They provide rankings based on total publications in economics in universities regardless of whether the economists are in the economics departments or in other departments. Thus, no rankings on per capita bases are provided. We correct this shortcoming by providing total and per capita rankings and analysing the correlations between total and per capita rankings. This is the first study to examine whether the size of the economics department matters with regard to productivity.     

Derivative mortgage securities: An overview

Derivative mortgage securities have proliferated since planned amortization and floating rate CMO classes were introduced in late 1986. Other recently created derivative securities include reverse floaters and deep-discount bonds of CMOs, CMO residuals, and stripped and senior/subordinated passthroughs. These securities, which are derived from fixed-rate mortgages, were created to meet investor demands for maturity certainly, interest rate and prepayment hedging, and enhanced credit. The rapid growth of derivative securities reflects expansion of the investor base for fixed-rate mortgages. It also suggests that these mortgages will continue to be a viable housing finance instrument in a volatile interest rate environment. For the future, the increased creation of derivative securities will make the secondary mortgage market more efficient, facilitating the funding of fixed-rate mortgage originations.The substance of this paper was originally written in late 1987 and many of the specific data reflect that time period.