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Asian Economics Letters

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2021-06-06 21:38:36

Impact of COVID-19 on Stock Markets

Gkaitantzis Christos , Nikandrou Charalampos , Kyriazakou Eleni

Using time-series data for 19 countries, we examine whether market connectedness (measured by market returns and volatility) increased over time because of the global financial crisis and the COVID-19 pandemic. Using a vector autoregression–based spillover


2021-06-06 21:59:22

House Prices and China's Birth Rate: A Note

Xiao-Cui Yin,Chi-Wei Su

This study aims to explore whether house prices have an asymmetrical threshold effect on the birth rate in China. We find that house prices have a significant negative impact on the birth rate when it is higher than the threshold value. This result indicates


2021-06-27 12:22:30

The Role of Internet Development on Energy Intensity in China: Evidence From a Spatial Econometric Analysis

Yu Hao,Haitao Wu

With the emergence of information communication technology, the role of internet development has become crucial for energy intensity. This study uses the spatial Durbin model to test the impact of internet development on China’s energy intensity. The


2021-06-27 12:29:05

Economic Policy Uncertainty and Corporate Innovation: Evidence From China

Huayu Shen,Man Zhang,Runxin Liu,Fei Hou

This study investigates whether economic policy uncertainty affects corporate innovation. Using a sample of Chinese listed firms during the period of 2007-2017, this paper finds that economic policy uncertainty is positively associated with corporate


2021-06-27 12:36:04

Does Bank Lending Intervention Hamper Firm Innovation? Evidence From the Chinese-style Capacity-Reduction Initiative

Huwei Wen,Qiming Zhong,Quanen Guo

Using the difference-in-differences method, this study investigates the impact of bank lending intervention on firm innovation. We find that bank lending intervention significantly hampers R&D investment of firms in overcapacity industries. Moreover,


2021-06-27 12:41:25

Does Private Investment Help Improve Natural Resource Utilization Efficiency?

Guoxiang Li,Suling Feng

Using panel data from 30 Chinese provinces (excluding Tibet, Hong Kong, Macao, and Taiwan) over the 2006 to 2016 period, this research analyzes the impact of private investment on natural resource utilization efficiency. We find that private investment


2021-06-27 12:47:11

A Note on the Asian Market Volatility During the COVID-19 Pandemic

Susan Sunila Sharma

This paper provides a note on commonality in volatility for five developed Asian economies, namely Hong Kong, Japan, Russia, Singapore and South Korea. Additionally, we examine whether the COVID-19 pandemic changed the commonality in volatility within


2021-06-27 12:51:38

Pandemics and the Asia-Pacific Islamic Stocks

Afees A. Salisu,Abdulsalam Abidemi Sikiru

In this paper, we examine the potential of the Asia-Pacific Islamic stock market to serve as a good hedge against uncertainty due to pandemics and epidemics (UPE). Relying on a new dataset for UPE, we find evidence in favour of the hedging potential of


2021-06-27 12:57:13

Has COVID-19 Changed Exchange Rate Resistance to Shocks?

Paresh Kumar Narayan

In this note, we propose the hypothesis that COVID-19 has influenced the Yen-US dollar exchange rate’s resistance to shocks. We propose a time varying unit root model and unravel that prior to the pandemic, the Yen was non-stationary while during the


2021-06-27 13:01:15

Tourism and Unemployment in Hong Kong: Is There Any Interaction?

Meng Qin,Chi Wei Su

This paper investigates the time-varying interaction between tourist arrivals (TA) and unemployment rate (UE) in Hong Kong. We find that TA negatively influence UE, implying that lack of tourism hurts employment prospects. We also document a positive


2021-06-27 13:51:49

The COVID-19 impact on the Asian Stock Markets

Luis A. Gil-Alana,Gloria Claudio-Quiroga

In this note, we examine the impact that the COVID-19 crisis may have on the Asian stock markets by examining the statistical properties of three financial markets in Asia: namely, the Korean SE Kospi Index, the Japanese Nikkei 225, and the Chinese Shanghai


2021-06-27 13:55:53

Did Bubble Activity Intensify During COVID-19?

Paresh Kumar Narayan

In this note, we utilize hourly exchange rate data for Japanese Yen, Canadian dollar, European Euro and the British pound to search for possible bubble type behavior. We identify evidence that bubble activity characterizes all four exchange rates more


2021-06-27 14:01:17

Economic Policy Uncertainty in Times of COVID-19 Pandemic

Bernard Njindan Iyke

We examine the impact of the novel coronavirus (COVID-19) pandemic on economic policy uncertainty (EPU) in five leading Asian economies, namely China, India, Japan, Korea, and Singapore. We find that the pandemic has a positive and statistically significant


2021-06-27 14:06:23

Product Market Competition and R&D Investment: Evidence From Textual Analysis on Annual Report of China's Listed Firms

Ziyu Song,Shuming Ren

We investigate the relationship between product market competition (measured by textual analysis of annual reports) and Research and Development (R&D) investment of China’s listed firms. Empirical results show that competition promotes innovation. Economic


2021-06-27 14:14:40

Can Oil Prices Predict Japanese Yen?

Neluka Devpura

In this paper, we examine the relationship between Japanese Yen (vis-à-vis the US dollar) and the crude oil futures price. The novelty is that we use high frequency (intraday hourly) data to examine time-varying predictability. We find limited evidence


2021-06-27 14:19:55

Dynamics of Foreign Portfolio Investment and Stock Market Returns During the COVID-19 Pandemic: Evidence From India

Prabheesh KP

This paper examines the causality relation between stock returns and foreign portfolio (FPI) flows in the Indian context during the COVID-19 pandemic. Using daily data and the Toda and Yamamoto Granger causality test, the study finds that unidirectional


2021-06-27 14:26:06

The Effect of Country-level Factors and Government Intervention on the Incidence of COVID-19

Anasuya Haldar,Narayan Sethi

This study explores the effects of demographic, socio-economic, and public-response factors on the incidence of new COVID-19 cases for the 10 countries with the greatest number of confirmed cases. Results show that demographic factors and government policies