Papers by Argiro Moudatsou
Springer Proceedings in Business and Economics, 2018
Springer Proceedings in Business and Economics, Proceedings of the 2018 , 2018
Finance-driven globalization has produced winners and losers in the developing world. Over the pa... more Finance-driven globalization has produced winners and losers in the developing world. Over the past thirty years, many developing countries have experienced spurts of economic growth followed by collapses. In the process, some have fallen further behind the advanced economies, while only a few have enjoyed sustained economic growth. The main purpose of this paper is to provide an assessment of empirical evidence on the effects of financial globalization for developing economies of Commonwealth of Independent States (Former Soviet Republics). This group of countries was chosen for reasons of geographic proximity and similarities in economic structure we tried to answer the question: Did the driven by the financial sector globalization empower the growth for the sample countries? On the basis of Blundell and Bond (1998), a dynamic panel data model is employed. The econometric methodology is the system GMM two-step estimator developed by Arellano and Bover (1995) Blundell and Bond (1998 and 2000) and Roodman (2009). Considering a possible correlation between the lagged dependent variable and the panel fixed effects and the "small T, large N" restriction, Windmeijer's (2005) procedure is implemented so that standard errors become robust after getting small sample size of the dataset under control. Our results show that only Trade has a positive effect on growth, while FDI Financial Openness and Financial Integration do not have any impact on growth for the counties' sample.
Chapter in Springer Proceedings in Business and Economics, Proceedings of the 2018 , 2018
Finance-driven globalization has produced winners and losers in the developing world. Over the pa... more Finance-driven globalization has produced winners and losers in the developing world. Over the past thirty years, many developing countries have experienced spurts of economic growth followed by collapses. In the process, some have fallen further behind the advanced economies, while only a few have enjoyed sustained economic growth. The main purpose of this paper is to provide an assessment of empirical evidence on the effects of financial globalization for developing economies of Commonwealth of Independent States (Former Soviet Republics). This group of countries was chosen for reasons of geographic proximity and similarities in economic structure we tried to answer the question: Did the driven by the financial sector globalization empower the growth for the sample countries? On the basis of Blundell and Bond (1998), a dynamic panel data model is employed. The econometric methodology is the system GMM two-step estimator developed by Arellano and Bover (1995) Blundell and Bond (1998 and 2000) and Roodman (2009). Considering a possible correlation between the lagged dependent variable and the panel fixed effects and the "small T, large N" restriction, Windmeijer's (2005) procedure is implemented so that standard errors become robust after getting small sample size of the dataset under control. Our results show that only Trade has a positive effect on growth, while FDI Financial Openness and Financial Integration do not have any impact on growth for the counties' sample.
Finance-driven globalization has produced winners and losers in the developing world. Over the pa... more Finance-driven globalization has produced winners and losers in the developing world. Over the past thirty years, many developing countries have experienced spurts of economic growth followed by collapses. In the process, some have fallen further behind the advanced economies, while only a few have enjoyed sustained economic growth. The main purpose of this paper is to provide an assessment of empirical evidence on the effects of financial globalization for developing economies of Commonwealth of Independent States (Former Soviet Republics). This group of countries was chosen for reasons of geographic proximity and similarities in economic structure we tried to answer the question: Did the driven by the financial sector globalization empower the growth for the sample countries? On the basis of Blundell and Bond (1998), a dynamic panel data model is employed. The econometric methodology is the system GMM two-step estimator developed by Arellano and Bover (1995) Blundell and Bond (1998 and 2000) and Roodman (2009). Considering a possible correlation between the lagged dependent variable and the panel fixed effects and the "small T, large N" restriction, Windmeijer's (2005) procedure is implemented so that standard errors become robust after getting small sample size of the dataset under control. Our results show that only Trade has a positive effect on growth, while FDI Financial Openness and Financial Integration do not have any impact on growth for the counties' sample.
Review of Development Economics , 2015
The aim of this paper is to investigate the determinants of business cycle (BC) synchronization a... more The aim of this paper is to investigate the determinants of business cycle (BC) synchronization across 21 (old and new) countries of the enlarged European Union (EU). It utilizes international data to evaluate the linkages among bilateral trade in goods, bilateral foreign direct investment (FDI) flows and BC co-movements. The paper contributes to the current literature by examining the relationship using the latest available data (sample range: 1998-2011), and thus taking into account the European sovereign debt crisis period. It also examines the role of FDI, which though increasingly important in the flows of international production factors, is currently neglected by the literature. Preliminary results show that FDI has no direct effect on BC synchronization while international trade helps to synchronize BCs but only before the recent financial crisis (pre-2008) and only for the traditional EU countries.
Journal of Economic Integration, Dec 1, 2003
This paper contains an empirical assessment of the growth effects of foreign direct investment (F... more This paper contains an empirical assessment of the growth effects of foreign direct investment (FDI) in European Union (EU) countries, when controlling for other growth determinants. Using data over the period 1980-1996, we obtained estimates of the growth effects of FDI for each country in isolation and by pooling the data for the whole Union. Country-specific estimates suggest that growth determinants vary across EU members and that only past FDI inflows have a significant effect on growth. Interestingly, when data are pooled, the empirical results show that FDI has a positive effect on the growth rate of EU economies both directly and indirectly (through trade reinforcement). Also, unlike previous empirical findings concerning developing economies, we obtained evidence that the growth effect of FDI is not conditional upon the level of human capital in developed host countries.
Parallel Sessions E: Contemporary Country Studies in Economic Measurement
Journal of Economic Integration, 2003
This paper contains an empirical assessment of the growth effects of foreign direct investment (F... more This paper contains an empirical assessment of the growth effects of foreign direct investment (FDI) in European Union (EU) countries, when controlling for other growth determinants. Using data over the period 1980-1996, we obtained estimates of the growth effects of FDI for each country in isolation and by pooling the data for the whole Union. Country-specific estimates suggest that growth determinants vary across EU members and that only past FDI inflows have a significant effect on growth. Interestingly, when data are pooled, the empirical results show that FDI has a positive effect on the growth rate of EU economies both directly and indirectly (through trade reinforcement). Also, unlike previous empirical findings concerning developing economies, we obtained evidence that the growth effect of FDI is not conditional upon the level of human capital in developed host countries.
Journal of Economic Integration, 2011
This study attempts to address the causal-order between inward FDI and economic growth using a pa... more This study attempts to address the causal-order between inward FDI and economic growth using a panel data set for two different Economic Associations that is EU (European Union) and ASEAN (Association of South Eastern Asian Nations) over the period 1970-2003. The inflows of FDI to developed host countries raise the question of how these inflows affect their economies and what is the interaction between FDI and growth. While there is considerable evidence on the link between FDI and Economic Growth , the causality between them has not been investigated in a reasonable procedure. Three possible cases are investigated in this paper 1) Growth-driven FDI, is the case when the growth of the host country attracts FDI 2) FDI-led growth , is the case when the FDI improves the rate of growth of the host country and 3) the two way causal link between them. Empirical results obtained from heterogeneous panel analysis indicate the following. Regarding the EU countries the results support the hypothesis of GDP-FDI causality (growth driven FDI) in the panel. Regarding the ASEAN, there is a two-way causality between GDP per capita and FDI like the cases of Indonesia and Thailand. In the cases of Singapore and the Philippines, howerver, FDI is motirated by host country's. GDP growth. So, the
Advances in Time Series Data Methods in Applied Economic Research, 2018
The emergence of BRICS as major exporters on international markets is one of the drawing forces b... more The emergence of BRICS as major exporters on international markets is one of the drawing forces behind the industrialized countries’ loss of global markets. China has clearly become the most serious challenge to the EU’s industrial competitiveness. But the BRICs also provide formidable opportunities for exports. The motivation of our study is to focus on the trade relationship between BRICS and EU and through revealed comparative advantage indices to search for new opportunities and challenges created between those great partners. In the present study, focusing on the value of exports of BRICS (Brazil, Russia, India, China and South Africa) to EU28 for the period 2010–2016, we investigate first, in what and how many categories of goods each BRICS-member has a positive standard of normalized comparative effect and second we examined the trade pattern of these countries in respect to their exports to the European Union of 28. Using export data 1233 product groups 4 digits HS 2002 classification we constructed the Normalized Comparative Advantage (NRCA) index for each BRICS-member, and for each year of period 2001–2016.). The results suggest convergence of Brazil and S. Africa and divergence of Russia, China, India economies. Brazil is specialized in primary sector and minerals, Russia is specialized in basic metals, India and China are specialized in primary sector products but they have very strong presence in chemicals, semifinished products and manufacturing. Finally South Africa is specialized in primary sector, textiles and minerals.
Eurasian Studies in Business and Economics, 2016
Finance-driven globalization has produced winners and losers in the developing world. Over the pa... more Finance-driven globalization has produced winners and losers in the developing world. Over the past 30 years, many developing countries have experienced spurts of economic growth followed by collapses. In the process, some have fallen further behind the advanced economies, while only a few have enjoyed sustained economic growth. The main purpose of this paper is to provide an assessment of the empirical evidence on the effects of financial globalization for developing economies of the Commonwealth of Independent States (former Soviet Republics). This group of countries was chosen for reasons of geographic proximity and similarities in economic structure; we tried to answer the question: Did the drive by the financial sector globalization empower the growth for the sample countries? On the basis of Blundell and Bond (Journal of Econometrics 87:115–143, 1998), a dynamic panel data model is employed. The econometric methodology is the system GMM two-step estimator developed by Arellano and Bover (Journal of Econometrics 68:29–51, 1995), Blundell and Bond (Journal of Econometrics 87:115–143, 1998; Econometric Reviews 19:321–340, 2000), and Roodman (The Stata Journal 9:86–136, 2009). Considering a possible correlation between the lagged dependent variable and the panel fixed effects and the “small T, large N” restriction, Windmeijer’s (Journal of Econometrics 126:25–51, 2005) procedure is implemented so that standard errors become robust after getting small sample size of the dataset under control.
Advances in Panel Data Analysis in Applied Economic Research, 2018
Our motivation of running this research is the increasing importance of BRICS as a dynamic and em... more Our motivation of running this research is the increasing importance of BRICS as a dynamic and emerging power with a growing role in global affairs. The topic of this research in recent years is extremely important given the progress of the international economy and the growing role of the BRICS into the world economical scene, particularly for the less developed countries. The BRICS members are all developing or newly industrialized countries but are distinguished (at least the original four) by their large, fast-growing economies and, more recently, by their significant influence on regional and global affairs. This paper examines the role of emerging economies of Brazil, China, India, and Russia, as the new regional economic drivers for the less developed countries. To our knowledge, the case of the role of BRICS as dynamic emerging economies has not been entirely explored, so the target of our research is to contribute to this field. We employ a Global Vector Autoregressive (GVAR) model to investigate the extent of business cycle transmission from BRICS to LDCs. Our research follows Samake and Yang (2011) work with a different sample of countries and different time span. Our sample includes Brazil,
This paper concerns a comparative performance analysis of Greek and foreign (multina tional) firm... more This paper concerns a comparative performance analysis of Greek and foreign (multina tional) firms in Greek manufacturing sector regarding evolution of market shares, profitability and firms growth. For the analysis have been used data from balance sheets of two different group of companies (greek and foreign). In the two groups are included the most important manufacturing firms as it regards their size and market power. The comparison of the evolution of market shares for the period 1988-1994 indicates that foreign companies even though are the minority in each branch they dominate the branches were they activate in terms of market share. This happens because they possess some firm-specific advantages over their domestic competitors and is in accordance to the multinationals' (MNEs) theory. Against the traditional MNEs theory though, is the profitability issue since the analysis by branch (using regression methods) and the analysis for the manufacturing sector as a whole (using Analysis of Variance methods) showed that foreign firms are not more profitable than their domestic competitors and that ownership (domestic or foreign origin of the firm) does not affect firm's profitability (even though the theory asserts the opposite argument). This could happen because MNEs use other methods to transfer their profits abroad (e.g. transfer pricing is a most favourite strategy for profit remittance) Against traditional MNEs theory are also the results from firm's growth analysis since it was proved that ownership does not affect firms rate of growth, so the MNEs does not possess any advantage to grow faster than non-MNEs as theory states.
Applied Economics and Finance, 2014
The aim of this study is to investigate whether the level of financial development can make a sig... more The aim of this study is to investigate whether the level of financial development can make a significant contribution to the Foreign Direct Investment's (FDI) positive impact on economic growth. In other words, to examine whether the contribution of FDI on growth is relatively more important in countries with well-developed financial markets compared to those with the less-developed ones. The time period of the empirical research spans from 1988-2009, using yearly macroeconomic data for a sample of 73 developing countries. Our empirical methodology consists of panel-growth regressions. Our results suggest that the FDI make substantial contribution to growth where financial systems function effectively, such as high-income countries, while the FDI impact is found to be insignificant in cases where relatively weaker financial systems exist.
Open Economies Review, 2007
This paper analyzes the synchronization of business cycles between new and old EU members using v... more This paper analyzes the synchronization of business cycles between new and old EU members using various measures. The main findings are that Hungary, Poland and Slovenia have achieved high degree of synchronization for GDP, industry and exports, but not for consumption and services. The other CEECs have achieved less or no synchronization. There has been significant increase in synchronization of GDP and its major components within euro zone. This lends support to the argument of OCA endogeneity but there is also evidence of a world cycle. The consumption-correlation puzzle remains, but its magnitude has greatly diminished in the euro zone members.
Economic Modelling, 2014
This paper investigates the relationship between income inequality and globalization, measured wi... more This paper investigates the relationship between income inequality and globalization, measured with both trade and financial variables. We estimate an econometric model using appropriate panel data techniques for the EU-27 countries over the period 1995-2009. The analysis is also performed at subgroups of countries within the EU27, such as the Core, Periphery, High Technology, and the New EU Member countries. Overall, the results suggest that trade openness exerts an equalizing effect, while financial globalization through FDI, capital account openness and stock market capitalization has been the driving force of inequality in the EU-27 since 1995. The highest contribution to inequality stems from FDI. Although the trade impact remained robust, disparities were observed in the financial globalization effects within a certain group or among country groups. The recent financial crisis led to a significant rise in inequality only in the EU-periphery and the New Member states. The impact from the other control variables was either minor or insignificant.
Applied Economics, 2008
ABSTRACT We examine the causality between foreign direct investment (FDI) and economic growth for... more ABSTRACT We examine the causality between foreign direct investment (FDI) and economic growth for 66 developing countries, taking into account their interaction with exports and technological change. Time series analysis for each country is conducted, based on a method introduced by Toda and Yamamoto (1995) for testing Granger causality in the presence of nonstationary time series. The main findings of this article are: FDI causes growth in several of the developing countries, but the mechanism through which this works differs across countries and reverse causality from growth to FDI exists for many countries.
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Papers by Argiro Moudatsou