International Studies of Economics
Volume 20, Issue 3
Estimating common impact in class action litigation: A two-step method
Yonghong An
Informational differences, adaptive learning, and inflation forecast bias
Qiang Chen, Zechen Yin
How does digital economy drive the high-quality development of regional manufacturing?
Deyan Yang, Tingting Xiong
How much and how long? The transmission of external shocks on stock market in Chinese hospitality and tourism industry
Yuan Chen, Qikexin Yu, Peiwen Yuan, Yeyang Zhao
ESG rating, corporate dividends policy, and the moderating role of corporate life cycle: Cross country study
Husam Ananzeh, Amin Khalifeh, Hamza Alqudah, Hassan Ali Al-Ababneh, Hamzeh Al Amosh
Climate and political effects on agriculture: Empirical evidence from SSA
Defaru Adugna Feye, Amsalu Bedemo Beyene, Suchitra Krishna Kumar
Advantages of regional development—A study on poverty alleviation in contiguous destitute areas
Du Hongyu
Estimating common impact in class action litigation: A two-step method
Abstract: A central question in class action litigation is whether all or nearly all proposed class members were injured by the alleged conduct, that is, whether “common impact” exists. In this paper, we demonstrate that a two-step econometric methodology can be used to estimate customer-level overcharges, providing a basis for evaluating whether common impact exists. The estimates obtained from this methodology possess desirable properties. We also address several common misunderstandings and misinterpretations of the two-step approach in practice.
Informational differences, adaptive learning, and inflation forecast bias
Abstract: This work highlights a previously overlooked factor that contributes to bias in private inflation forecasts—ignorance of confidential monetary rules. Additionally, it examines how this ignorance indirectly affects policy rate settings. The model proposed reconciles biases in two key forecast sources: the inflation expectations from the Survey of Professional Forecasters and the Federal Reserve's Greenbook forecasts for the output gap. Moreover, the model investigates the impact of informational differences on monetary policy transmission and identifies clear conditions under which inflation rises following a contractionary monetary policy shock.
How does digital economy drive the high-quality development of regional manufacturing?
Abstract: Digital technologies promote economic progress. The digital economy drives the development of manufacturing. This paper explores the impact of the digital economy on the high-quality development of manufacturing using panel data from the Yangtze River Economic Belt in China. Employing the entropy method, we first measure the level of the digital economy and the high-quality development of manufacturing. Then, we divide the digital economy into three dimensions: the digital foundation, the digital application, and the digital innovation, and investigate how each dimension influences the high-quality development of manufacturing. Results show that: (1) Both the digital economy level and the high-quality development level of manufacturing exhibit steady growth, while the overall value of the Yangtze River Economic Belt stays low. (2) Three dimensions of the digital economy positively affect the high-quality development of manufacturing, with the most noticeable effect of the digital innovation, followed by the digital application and the digital foundation. (3) Threshold effect tests demonstrate that both the digital foundation and the digital application exhibit a double threshold effect on the high-quality development of the manufacturing, but the digital innovation has a single threshold effect. (4) Last but not the least, the digital foundation positively affects the high-quality development of the manufacturing in downstream and upstream regions, but less apparently influences midstream regions by the heterogeneity analysis. Additionally, both the digital application and the digital innovation have significant effects on the high-quality development of the manufacturing across all regions.
How much and how long? The transmission of external shocks on stock market in Chinese hospitality and tourism industry
Abstract: In this study, we employ the synthetic control method to evaluate the transmission of external shocks, taking COVID-19 as an example, on the stock market in the Chinese hospitality and tourism industry, specifically in the catering, hotel, cultural landscape, natural landscape, and travel agency sectors. We find an increasingly negative causal effect on stock returns in all five sectors within 1–2 days after the external shock occurred. However, this impact then gradually shrank, disappearing after 7 days. We also show that the short- and long-term causal effects of the external shock on stock volatility in the above sectors are positive and significant, due to the great uncertainty induced by the pandemic. We examine the sensitivity of stock market reactions and find that hotels are the most vulnerable among the five sectors in terms of the duration of the pandemic's negative impact. Finally, we report that larger firms in the catering and hotel sectors (compared to the other three sectors) show a greater increase in volatility. These findings provide valuable insights into financial market reactions to an external shock and offer implications for crisis management in the hospitality and tourism industry during such events.
ESG rating, corporate dividends policy, and the moderating role of corporate life cycle: Cross country study
Abstract: This article investigates the link between environmental, social, and governance performance (ESG) and dividend policy, as well as how the corporate life cycle might moderate this association. Using cross-country data from 2010 to 2020, the findings of this study reveal that ESG has a favorable influence on corporate dividend payments as measured by dividend payout ratio, dividend yield, and dichotomous variable. This conclusion holds true when the three ESG pillars are examined independently on dividend policy measurements. Furthermore, this analysis reveals that the firm's life cycle stage moderates the association between ESG and corporate dividend policy, exhibiting a negative moderating impact. This study specifically reveals that the relationship between ESG and dividends is stronger for firms in the early stages of their life cycle than for those in the mature stages. This relationship applies to firms operating in developed economies compared to developing economies. The study findings particularly highlight the dynamic nature of the link between ESG and dividends, underlining that this relationship is dependent on the stage of a company's life cycle. Understanding this relationship may assist stakeholders, such as investors and management, in making informed decisions about dividend expectations and sustainable practices depending on the life cycle of a firm.
Climate and political effects on agriculture: Empirical evidence from SSA
Abstract: Most Sub-Saharan African (SSA) countries have been affected by climate change and food insecurity problems due to the reduction of production and productivity of cereal crops in the continent. The purpose of this research was to examine the short-run and long-run effects of climate change on agricultural productivity in 24 selected SSA countries. In the study, a system Generalized Method of Moments (GMM) Model was used with recent data from 24 SSA countries from 2001 to 2020. The panel regression result revealed that temperature and precipitation showed positive significant effects whereas carbon dioxide emission had negatively influenced the cereal crop productivity in the region. Specifically, the empirical result indicates that a one percent increase in precipitation increases cereal crop productivity by 0.27%. The empirical result of the GMM model revealed that political stability, temperature, GDP per capita, trade openness, carbon dioxide emission, fertilizer consumption, and precipitation have both short-run and long-run effects, while precipitation has only a short-run effect on agricultural productivity in the study area. A key implication of this work is the recognition of the lagged effects of climate change in determining cereal crop production and productivity. This study was unable to include all SSA countries because the excluded countries did not have sufficient data on the selected variables in the study. Hence, adopting high-temperature and drought-resistant types of improved cereal crops is advised to combat the negative effects of climate change in the study area.
Advantages of regional development — A study on poverty alleviation in contiguous destitute areas
Abstract: The 2011–2020 period is the final stage of poverty alleviation in China, which emphasizes regional development. Using county-level panel data from 2006 to 2015, we explore the impact of regional poverty alleviation policy on economic growth of contiguous destitute areas (CDAs) in China. The results show that since 2012, the economy in CDAs has developed rapidly, GDP per capita has significantly improved by 5.4% and county GDP has significantly improved by 6.6%. The regional strategy promotes the construction of infrastructure and ecological projects and gives full play to the synergy effect, which doubles economic growth. The impact of economic growth is heterogeneous across different regional scales, regional inequalities, geographic locations, and population sizes, and persists even after counties are lifted out of poverty. Our findings recommend regional collaboration and highlight the importance of ecological protection in poverty alleviation.
Journal Profile
International Studies of Economics (ISE) is a general-interest open access journal in economics published by Wiley on behalf of the School of Economics, Shanghai University of Finance and Economics. Issued quarterly, the journal is indexed in more than 10 databases including DOAJ, EBSCO-BSU, EconLit, ESCI, Gale, Google Scholar, ProQuest, RePEc and SCOPUS.
ISE welcomes submissions of theoretical and empirical papers from all fields of economics, particularly those with an emphasis on the Chinese economy and other emerging, developing or transition economies. While the journal is primarily interested in original research papers, it also welcomes submissions of opinion articles, literature surveys, and book reviews.
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