Questions tagged [international-economics]

Use for questions related to international trade, commercial policy, open economy macroeconomics, international finance, and exchange rates. It can also be used in financial and monetary policies, economic development, migration and factor movements, as long as they are specifically related to an international context. Preferably use in conjunction with other, more precise tag.

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1answer
15 views

How to classify the developed and emerging market worldwide?

I am doing a cross-country research where different countries implement anti-corruption at the different year. I want to examine the impact of the laws in each set of countries (developed and ...
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1answer
20 views

How is the United States net foreign wealth affected by a depreciation of the US Dollar?

My thought here is that if the dollar were to depreciate, then the value of US liabilities would decrease while the value of their assets would increase. Moreover, the US trade balance would become ...
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3answers
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Is climate change an economic question?

The assumption that the Keeling Curve can be approximated with a function $$k=A+B\cdot e^{\alpha t}$$ leads to a solution with $A=258.6$, $B=4,243\cdot 10^{-13}$ and $\alpha=0.0166$ with a high ...
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0answers
7 views

National Production/Consumption Data

I've found https://comtrade.un.org/ for country-to-country product import/export data. Is there an equivalent data set for self-consumption, ideally harmonized with the UN's H6 classification system? ...
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0answers
21 views

Why emerging stock markets are where investors diversify and hedge against the country-specific uncertainty of their local stock markets?

Civilize, 2015 states that Our study focuses on emerging stock markets of countries that have a history of military rule. An investigation of these markets is valuable for investors, particularly ...
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4answers
129 views

How do non-US governments raise dollars?

I want to understand how non-US governments earn dollars. I tried googling for it but there seems to be no information on the internet. Your help is much appreciated. I am looking for methods that don'...
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0answers
28 views

Asking for some research and application of Gini index in academic researches?

I am reading Gini index, which is a measure of the distribution of income across a population. It is often used as a gauge of economic inequality, measuring income distribution or, less commonly, ...
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0answers
30 views

Where to update the data regarding "total criminal antitrust" fines globally in $US and days?

Dasgupta, 2019 have the data for Total criminal antitrust fines from 1990 up to 2012 Total criminal antitrust fines increased from $107 million in 2003 to $1.1 billion in 2012, and total prison ...
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0answers
33 views

Definition of Gini coefficient

I am reading the definition of Gini coefficient. The Gini coefficient is a single number that demonstrates a degree of inequality in a distribution of income/wealth. It is used to estimate how far a ...
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0answers
11 views

Why we need to control for import and exchange rate change when examining asset growth?

Dasgupta , 2019 examines the impact of antitrust laws on asset growth, total net external financing, debt-to-equity ratio. In his regression, I saw that he controls for imports as a percentage of GDP, ...
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1answer
117 views

Asking for paper or data source mentioning the social restriction due to COVID-19 globally

Regarding COVID-19 response, we have the stringency index. But I am wondering is there any source that documented the first law implementation date or month regarding society restriction (social ...
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1answer
122 views

Asking for some geopolitical variables suggestion

Normally, we control for geography variables in some economic studies. However, in the study examining how well the government implements the laws and orders, my advisor told me that we can think of ...
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3answers
842 views

What should we do if the subsample have the opposite results to the general results?

In my replication study, I examine whether a law (a law implemented staggered by different countries) has an impact on firms' cash equivalents. The result turning out for the whole sample is that the ...
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0answers
13 views

Replacing country-pairs value with if condition

for my Master thesis, I am working with Stata and I am trying to replace countries-pair values equal to the values of other countries-pairs. I start presenting my data: regulatory distance is a ...
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1answer
72 views

How to classify sample by time-variant index?

In finance paper, we have a famous index representing for law is WGI (World Governance Index). I am wondering how we classify countries by this time-variant index as this paper below. It is easy to ...
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0answers
29 views

References for regional classification

I read an international study, Table 2 and see that the author did regions*year fixed effect. I am looking for some reference to classify 64 coutries in their paper to different region. I found a link ...
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0answers
116 views

A doubt on summary statistic of post*treat variable of a paper using DID (Dong,2019)

Generalized DID or Staggered DID are DID using staggered treatment events. In Dong,2019's paper, he uses the framework as below: $Margin_{ikjt}$ = $\alpha$ + $\beta$ $(Leniency Law)_{kt}$ + $\delta$$...
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1answer
282 views

What shoud we do when the expected treatment overlaps control sample in DID?

In a generalized Difference-in-Differences in Dasgupta,2019 paper, he documented that control countries did not have a leniency law introduced over 2 years before to 5 years after the introduction of ...
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0answers
33 views

Can anyone explain why the Swiss balance of payments is not balanced (real data)?

While doing a little research I went to the Swiss National Bank's website and downloaded their data on the Swiss balance of payments. The data is here: https://data.snb.ch/en/topics/aube#!/cube/...
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1answer
102 views

Why we need to control for the interation of year and industry fixed effects?

Normally, we control for firm and year fixed effects, but in some case I saw people control for the firm along with yearxindustry or firm and yearxregion fixed effects. Could you please hint me why ...
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1answer
59 views

Is there any confliction in dataset and sample period description here?

Dasgupta,2019, p.2598 documented that they consider all nonfinancial firms in Worldscope, Compustat Global, and Compustat North America data sets from 1990 to 2012 However, they used the [-2;+5] ...
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2answers
221 views

How to justify the treatment and control groups for Difference-In-Difference with staggered implementation of laws?

A. Background: Dong, 2019 and Dasgupta, 2019 used the same way to generate the treatment and control groups because they all learn about the impact of the same laws on different dependent variables. I ...
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1answer
40 views

What are the justification of using 1990 or 2010 as benchmark in studies?

Normally, many international studies and documents using multiple-of-10 years (for example 1990, 2010) as the benchmark year. For example: Dong,2019, p.899 used 1990 as the benchmark to calculate the ...
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0answers
26 views

Relationship between stock market and exchange rate

I am looking for some references on the relationship between the stock market and the exchange rate, both from the empirical and theorical side. Is there any theory which suggests a relationship ...
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0answers
59 views

Is Reinhart and Rogoff mistake also present in similar 'minded' studies?

In Reinhart and Rogoff (2010), the authors purported to have found empirical evidence that going over the 90% of public debt threshold was harmful for the country. However, in 2013 (I think), after ...
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Shifts in IS in a fixed exchange rate mechanism

First, we assume we are in a fixed exchange rate mechanism. In this system, I deduce that the expected exchange rate would be fixed, at the market rate. In a floating system, with open capital markets,...
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0answers
36 views

non strategic sovereign default

Much of the sovereign default literature (e.g., Arellano (2008), Bulow and Rogoff (1989)), considers that sovereign default is strategic: i.e., defaults occurs if the current benefits outweigh ...
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1answer
427 views

What are the differences between "Crawling peg" and "Crawl-like arrangement"?

The IMF AREAER 2019 classifies 3 countries as "crawling" and 18 as "crawl-like". It's not clear to me though how these classifications were made and why they couldn't be switched ...
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0answers
21 views

Does IMF consider the international reputation of a country?

Hi I have three question below which I tried searching on internet and read a lot of literature as well. Besides all the literature sources I need to know some practical knowledge of people out there. ...
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0answers
22 views

What would happen to Eurozone and EU if Italy defaults on its debt?

Question What would happen to Eurozone and EU if Italy defaults on its debt? Background & disclaimer This direct question is an attempt to amend the more expanded question. Given that this ...
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0answers
8 views

Does the US Federal Government keep public records of annual service payments on external (foreign-owned) public debt?

I'm doing some research on international debt policy, and I'd like to be able to compare some statistics I've compiled of external public debt in HIPC (heavily indebted and poor countries) with the ...
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1answer
37 views

What would be the impact on value of a country's assets and trade balance if its residents choose to increase their savings [duplicate]

What would be the impact on value of a country's assets and trade balance if its residents choose to increase their savings by investing in overseas assets and why? May please help with this question ...
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1answer
20 views

Price convergence in international markets?

Why do prices tend to converge towards the pre-trade prices of the larger country when two countries trade based on comparative advantage?
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1answer
491 views

What is the difference between the international Fisher effect and uncovered interest rate parity?

References: https://en.wikipedia.org/wiki/International_Fisher_effect https://en.wikipedia.org/wiki/Interest_rate_parity#Uncovered_interest_rate_parity As far as I can tell, these two are the same. ...
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0answers
34 views

graph of dependent variable after years of restructuring in panel data

i'm not very able to use stata. For my thesis, I have a panel data(1970-2017) for different countries and a lot of variables. In this dataset, there is a dummy (dhairendH) that is equal to one in the ...
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0answers
18 views

unit iso-quant curve and unit iso-value line

This question is about international trade theory. For the labor L and capital K, I know the theory of iso-quant and iso-cost. The price will be determined where iso-cost line touches iso-quant curve. ...
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1answer
55 views

Understanding IMF statistics

I teach Politics and I've been asked to prepare a course which includes a lot of financial data because it covers recent international financial crises. I've been trying to use IMF statistics, but I ...
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1answer
64 views

What does it mean, 'Higher interest rates attract FIIs and FPIs'?

What would interest rates have anything to do with shares? When we say a higher interest rate attracts FII/FPI, does it not mean it is investing in shares of a company? For example, how does it help a ...
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1answer
43 views

Monopsony theory of Single Payer

One theory of how single payer/universal healthcare systems are less expensive than the US private insurance market is that each country functions as a monopsony: a market structure in which a single ...
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2answers
49 views

How to estimate Italian parking data starting from German parking data?

I am currently investigating the economic impact of the parking pain in Italy. I have just found out this INRIX Research which is absolutely stunning, but it only focuses on US, UK and Germany market. ...
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0answers
32 views

Biggest foreign owners of China debt?

It is already known that China and Japan are the biggest owners of US debt - about one trillion dollars each. But who are the biggest owners of China debt? I mean the foreign owners.
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0answers
22 views

How do you perform economic analysis of a country? [closed]

I have no academic background in economics except for one class I took in engineering school. In this recent crisis of coronavirus, I would like to know how my country is doing overall and how deep in ...
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0answers
30 views

Exchange rate modeling using a system of ODEs

I am looking for a book that explains exchange rates, capital flows, reserves, trade balance using a system of ordinary differential equations. An economist by the name of Muller-Plantenberg has this ...
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1answer
44 views

Financial Economics and International Economics

What is the difference of Financial Economics and International Economics? Why, How? What are the implications of these differences? Will a model of international economics suddenly become a model of ...
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0answers
24 views

How does the trade problem in Ricardian model of int'l trade work?

Sorry if this question seems fragmented; I have minimal background in economics, I just grabbed some notes and began studying. The scenario is given as: "Suppose Germany needs to make a 1 billion ...
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1answer
52 views

FDI - Foreign Direct Investment

If foreign direct investment (FDI) in a sector is not stable, for example, if it increases dramatically one year and then declines the following year. If the fluctuation continues over ten years, what ...
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1answer
31 views

How are PPP, nominal exchange rates and inflation related?

This Forbes article discusses how changes in the market exchange rate can be used to estimate an inflation rate thanks to the principle of purchasing power parity (PPP). Can someone distill this ...
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2answers
784 views

What does it mean if a country's exchange rate is said to be “overvalued”?

For instance, China's or Switzerland's currencies are often said to be overvalued.
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50 views

Why do we have autarky price of mud pies equal to 0.5 of cheese, while it must be zero?

(It's assumed that we work with the Ricardian model) Absurdtopia is an autarky. Production of 1 mud pie requires 1 labor, while production of 1 cheese requires 2 labor. We know that price of 1 mud pie ...
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1answer
31 views

Which one of these intepretations of belonging of a factor of production is correct in context of calculating "income of our citizens abroad"?

NFFI can be calculated as income of foreigners here MINUS income of our citizens/corporations abroad. As far as I understand, it's assumed that our citizens earn income by using OUR factors of ...