International Financial Transactions Research Articles

Nonlinear relationships between the participation index and key financial assets: A quantile regression analysis

The Participation Index is essential for assessing market sentiment, investor confidence, and financial market direction. Gold, known for its historical role in protecting wealth and providing a stable asset during economic instability, plays a key role in investment portfolios as an alternative guarantee against financial market fluctuations. The USD and EUR are key current currencies in global economics, affecting international trade, financial transactions, and investment decisions. The purpose of this study is to analyze the complex relationships between the Participation Index (KAT) and three significant financial assets: gold, the US dollar (USD), and the Euro (EUR) using Quantile Regression analysis. Daily data between 16.11.2021-08.08.2023 were used in this study. According to the results; the impact of the euro exchange rate on the "KAT" variable exhibits a positive relationship, which increases as the quantile level rises. The impact of the exchange rate of the United States Dollar (USD) on the variable defined as "KAT" indicates a positive relationship, which intensifies as the quantile level rises. The relationship between gold prices and the "KAT" variable shows a positive strengthening impact as the quantile level increases, and these effects demonstrate a high level of statistical significance.

AI-Driven Global Sanctions Enhancement

This thesis examines the integration of Artificial Intelligence (AI) into global sanctions management, a field currently dominated by manual processes and semi-automated systems that are inefficient and error-prone. With the increasing complexity and volume of international financial transactions, traditional approaches to sanctions compliance are no longer adequate to meet the demands of dynamic global regulations and enforcement challenges. The primary aim of this research is to explore how AI can revolutionize sanctions management by enhancing accuracy, speed, and adaptability in compliance operations. Key findings reveal that AI can significantly reduce the reliance on human intervention, thereby decreasing operational costs and minimizing errors. AI-enhanced systems are shown to improve the consistency and reliability of compliance measures, effectively manage large volumes of data, and swiftly adapt to regulatory changes. The research highlights that integrating AI into sanctions management not only bolsters compliance efficiency but also strengthens the overall risk management framework of financial institutions. The significance of this research lies in its potential to guide financial institutions in implementing AI solutions that can transform their sanctions compliance frameworks. By providing a detailed roadmap for the adoption of AI, the study contributes to broader efforts to enhance global financial security and compliance, positioning AI as a pivotal technology in the evolution of global sanctions management.

Dynamic cross-border payment preferences: A qualitative study of Indonesian expatriates in Thailand and Malaysia

Along with the development of global digitalization, international financial transactions are also advancing. In response, Indonesia (Bank Indonesia) collaborated with Malaysia and Thailand by launching Local Currency Settlement (LCS) integrated with Quick Response (QR) codes to reduce the use of dollars in cross-border transactions. Therefore, this study aims to investigate the Indonesian customer (Indonesian expatriates) preferences for payment methods provided by Bank Indonesia, specifically in the context of facilitating cross-border transactions. The number of research participants was 50 Indonesian expatriates (36 in Thailand, 14 in Malaysia), who were purposefully selected based on the criteria of being Indonesian traveling, studying, or residing in Thailand and Malaysia while maintaining Indonesian bank accounts. To identify these preferences, this study uses qualitative research using the Analytic Hierarchy Process (AHP) method. Based on the Hierarchical analysis, the results show that the main alternatives in payment method preference in Thailand and Malaysia show that Visa is still the most dominant in cross-border transactions. Across hierarchical criteria, including trust, speed, usability, installment flexibility, timing, and offering interest-free installment plans, Visa consistently outperformed QR Codes and Cash. Nonetheless, it is essential to highlight that QR Codes scored the highest in the criteria of Ease of Use in Malaysia. While in Thailand, QR codes achieved the highest score in terms of cost-effectiveness.

Distance(s) and the volatility of international trade(s)

We show that distance matters for the volatility of international trade and financial transactions on top of its well-known impact for their levels. We conduct event studies on the global financial crisis and the Covid-19 pandemic with country-level and product-level data, and a longer panel data analysis. We consider measures of physical, virtual, and language distance jointly – the latter two proxying for ease of communication. We find evidence of larger trade declines in more distant country dyads and underscore the relevance of information frictions rather than shipment costs. Physical distance matters for trade volatility beyond goods, as do virtual and language distances. Physical and virtual distances amplify each other's effects at the country level, as do virtual and language distances at the product level. Distance effects are also weaker for homogenous products and foreign direct investment and banking activity entailing local presence, again pointing to the importance of information frictions.

Односторонние ограничительные меры в сфере международных финансовых расчетов

This article analyzes the peculiarities of unilateral restrictive measures in the systems of international financial transactions, including SWIFT, as well as the basis of their legal regulation.

Role of financial openness in Ghana’s financial sector development episode

PurposeThis paper aims to reexamine the relationship between financial openness and financial development in Ghana.Design/methodology/approachThe study applied maximum likelihood estimation and autoregressive distributed lag approach and tested Granger causality using quarterly data from 1990:1 to 2020:4.FindingsThis study revealed a long-run equilibrium relationship between financial openness and development, indicating that financial openness is a critical factor in Ghana’s financial development. Therefore, the study recommends with caution that policies aimed at promoting financial openness could be an effective way to encourage sustainable financial development in Ghana, as financial openness alone may not bring the desired outcome.Research limitations/implicationsThe study contributes to the existing body of knowledge by providing empirical evidence of the link between financial openness and financial sector development in Ghana. Future research could delve deeper into the mechanisms through which financial openness affects financial development, exploring potential channels and transmission mechanisms.Practical implicationsThe findings suggest that policymakers, particularly the Ministry of Finance and the Bank of Ghana, should prioritize policies aimed at promoting financial openness. This includes continued efforts toward financial liberalization and creating an environment conducive to domestic and international financial transactions. Moreover, policies aimed at increasing trade openness, boosting real GDP and maintaining moderate real interest rates are essential for fostering financial sector development.Social implicationsEnhancing financial sector development can have significant implications for society, including increased access to financial services, improved economic opportunities and enhanced overall economic stability. By promoting financial openness and development, policymakers would contribute to poverty reduction, job creation and overall socio-economic development. The study bridges the gap between theory and practice by providing empirical evidence supporting the theoretical proposition that financial openness stimulates financial sector development.Originality/valueThis study fills a crucial gap in the literature on the effects of financial openness on Ghana’s financial sector development. It focuses on Ghana, which liberalized its financial sector in 1988 as part of the overall economic reforms in 1983, and this justifies the starting point of this paper in 1990, as there are no adequate data before 1990. The study uses principal component analysis to construct an index that measures financial development. The study considers the recent financial crises in Ghana in 2017 and underscores the importance of understanding the link between financial openness and financial development, which becomes useful for policymakers and researchers studying financial system development in sub-Saharan Africa which includes Ghana.

Exporting of Country Chicken

Abstract: The frozen country chicken industry, a plant-based meat startup, and the prospective markets for South Indian cuisine are the three main topics of this report's exploration of the prospects and problems facing the food sector. For entrepreneurs that have access to Aseel roosters, the frozen country chicken industry presents a profitable possibility. The business concept of this venture revolves upon the processing, packing, and exportation of the chicken. But issues like upholding standards, finding qualified workers, and getting enough funding must be resolved. However, the firm producing plant-based meat seeks to offer sustainable substitutes for industrial meat production. It must overcome obstacles including processing international financial transactions, competing in a crowded market, and creating ecologically responsible solutions. There is a sizable market for South Indian food in places like Malaysia, Singapore,

Combined International Trade and Investment Data “CITID” – A New Innovative and Comprehensive Data Landscape for Germany

Abstract The Combined International Trade and Investment Data (CITID) represents a new innovative and comprehensive data landscape that combines firm-level data focused on international trade and investment. The datasets are sourced from both the Deutsche Bundesbank and the Federal Statistical Office of Germany, ensuring a reliable and robust data landscape. Within the CITID, multiple individual datasets seamlessly merge, encompassing a wide range of information. These include data on trade in goods, trade in services, inward and outward foreign direct investment (FDI), as well as information on international financial and capital transactions along with additional firm-level data. The data enables a holistic understanding of firms’ international integration, previously unattainable, and offers new opportunities for analyzing global trade dynamics. The data will be accessible for research. This paper provides a comprehensive description of the individual datasets, including information about their combinability, the methodology for matching them, the data’s content, and its potential for further research.

GLOBAL MARKETS AND BUSINESS CENTERS

This paper discusses global markets and international business and their impact on companies and the economy at large. The global market includes international trade activities, cross-border investment, and inter-country economic integration. International business involves multinational corporations, global supply chains and international financial transactions. In the context of global markets, companies have wider access to larger markets, increase sales opportunities and diversify risks. They can access resources and labor that are not available in their home countries. However, engaging in international trade also involves challenges such as cultural differences, laws, regulations, and economic and political risks. International trade plays an important role in the economic growth of a country. It facilitates the flow of goods, services and capital between countries, increases productivity, creates jobs and strengthens economic dependence between countries. To trade in global markets, companies must understand international trade regulations, build strategic partnerships, and take advantage of technological advances to facilitate global communications and transactions. In addition, companies also need to manage risks related to currency fluctuations, changes in trade policies, and operational risks in foreign markets. Through careful research, in-depth market analysis and the use of the right strategies, companies can successfully trade with the world, increase their competitive advantage and achieve sustainable growth in an era of ever-evolving global markets.

Secular tax and Islamic tax: comparative legal analysis

This research paper is dedicated to a thorough comparative analysis of secular and Islamic taxation systems. The introduction provides detailed definitions of key concepts — tax, secular tax, and Islamic tax. It gives a classical definition of tax as a mandatory gratuitous payment for the benefit of the state. It describes the distinctive features of secular and Islamic taxes. This forms the necessary theoretical basis for the subsequent multi-faceted comparison of the two systems. Further, the main part conducts a detailed analysis of similarities and differences between secular and Islamic taxes based on multiple criteria grouped in a table by the renowned Professor Shovkhalov. It examines such key parameters as the original source of tax establishment, permissible limits of tax transformation over time, territorial scope of the tax, intended use of accumulated funds, state institutions and other organizations that directly collect taxes, a definitive list of taxpayer categories, admissibility of various tax base optimization schemes, existence of strict penalties for tax evasion. Each individual aspect is thoroughly compared, highlighting common characteristics and fundamental key differences, supported by illustrative examples from real taxation practices in different countries. In conclusion, the results are summarized in a condensed comparative table. An unambiguous conclusion is formulated about the fundamental difference between pragmatic secular taxes aimed at solving fiscal tasks of the state, and Islamic taxes, deeply rooted in the religious dogmas of Islam. Particular emphasis is placed on the crucial importance of accounting for the identified differences in taxation systems when analyzing national tax systems of various states, as well as when planning and conducting international financial transactions.

THE DILEMMA OF FINANCIAL POLICY IN CHINA

At present, the authorities of the People's Republic of China are faced with a dilemma: either adjust monetary policy pursued by international organizations (IMF and World bank) or continue to support the development of the real sector of the economy using direct financial maintenance. It is shown that in the first case, the PRC will better fit into the global fi-nancial system paying for this with a decrease in GDP growth rates. Under the second op-tion, based on active state support of the real sector with budgetary and banking resources, China's economic growth rates are expected to be higher, but the country will not fully meet the standards of the Western financial system. This will limit the ability to realize the benefits of participating in international financial transactions and will deter the transformation of the yuan into a world currency.

Another history of global financial markets: Local stock market integration since 1913 from a network perspective

AbstractWe examine local and global equity market integration since 1900 using network methods. The analysis uncovers a new stylised fact about equity market integration over the past 120 years. Local equity market integration generally increases over the entire sample period. This finding is at odds with much of the existing literature that describes long‐run market integration as following a U‐shape pattern. Global stock market integration peaks in 1913 followed by disintegration during the Great Depression and Bretton Woods periods. Then it rebounds and achieves the highest level of integration during the recent period of globalisation that began in the early 1970s. We argue that this U‐shape pattern is the by‐product of the interaction of the network effects of the monotonic decrease in local distances (decrease in information costs, accelerated in the past decades) and network connectivity (which varies inversely with the control over international financial transactions).

“Trilogy” of FDI, Export, and Remittances: An Empirical Study on Jordan’s Economic Development

One of the most difficult challenges facing the economies of developing and wealthy countries alike is the concern about economic development, particularly the issues of economic growth and unemployment. The study concentrated on the trinity of foreign direct investment, exports, and remittances because it is one of the most significant factors in international commerce and financial transactions and the main source of foreign reserves in Jordan. The study investigated the impact of foreign direct investment flows and foreign remittances in addition to exports on unemployment levels in Jordan in the period from 1982 to 2020, and unemployment was used as a representative variable for the economic development process. The study aimed to demonstrate the effect in the long run, and the auto-regressive distributed lags test (ARDL) was used as a tool for the standard analysis. The results showed that each of the three independent variables reduced unemployment in the long run, and the results showed a co-integration relationship in the long run. This study is considered one of the few and rare studies investigating this trio’s impact on Jordan’s economic development. Based on the results, the study presented recommendations for decision-makers.

Influence of RMB Internationalization on International Crude Oil Price Fluctuation

In recent years, China has been gradually improving its international status. As far as monetary policy is concerned, China has been gradually promoting the internationalization of the RMB, aiming to reduce its dependence on the international financial market dominated by the US dollar and reduce the impact of the Federal Reserve's political measures on the domestic economy. Under the influence of global economic and financial market factors such as COVID-19, the international financial system dominated by the US dollar is unstable and dangerous, and the international financial system has become more volatile. In contrast, the implementation of this measure will have an impact on some international financial transactions, such as stock market price fluctuations, commodity prices and foreign exchange transactions. For a long time, the oil price has been dominated by the US dollar due to the linkage between the US dollar and oil, and has increased with the appreciation of the US dollar. However, the process of people's internationalization affected the oil price by changing this traditional logic and impacted the global status of the US dollar, thus reducing the oil price by triggering the decline of the US dollar. This paper would like to focus on elaborating the influence of RMB internationalization on international crude oil price fluctuation.

Distance(S) and the Volatility of International Trade(S)

Does distance matter for the volatility of international real and financial transactions? We show that it does, in addition to its well-established relevance for the level of trade. A simple model of trade with endogenous markups shows that demand shocks have a larger impact on trade between more distant countries. We test this implication in two steps, relying on a broad range of real and financial transactions measures, as well as several different metrics of distance (physical, linguistic, and internet). We first show that during the Great Trade Collapse of 2007-09 international transactions fell more between countries that are more distant along the various metrics, and find that the different distance measures magnify each other's respective impacts. We then focus on a longer panel analysis of trade in goods and show that trade is more volatile between more distant countries, with again a magnification pattern across metrics of distance.

Ռուս-ուկրաինական ճգնաժամը որպես Հայաստանի պարենային անվտանգության սպառնալիք/Food Security of Armenia is Threatened by the Russian-Ukrainian Crisis

In international relations, the world's superpowers use their economic and geographical advantages as a weapon in accordance with their interests. In the current environment, more emphasis is placed on economic and political sanctions. The instrument of economic sanctions is primarily the restriction of international financial transactions, mutual visits, as well as trade in food and fuel. Here, we are seeing its material manifestations in 2022 in the context of the Russian-Ukrainian crisis that began on February 24. Since globalization has wrapped the world in a web of political and economic integration between countries, interstate conflicts affect not only the direct participants, but also their allies. By the way, the Russian-Ukrainian conflict affects trade and economic relations with Russia, including with the EAEU countries. In this case, a more difficult situation is created for countries that are closely interconnected with the center and have relatively few alternatives. By the way, in such a situation, countries that do not have access to a wide range of food and fuel imports and affordable logistics are especially vulnerable. The article, based on current information and retrospective analysis, assesses the threats to the food security of Armenia and possible ways to overcome them in the context of the Russian-Ukrainian military crisis.

Exchange Rate, Stock Price and Trade Volume in US-China Trade War during COVID-19: An Empirical Study

This article aims to examine the influence of international trade wars on the majority of stock market operations, both directly and indirectly affected. The impact of the trade war on the exchange rates of the participating countries was similarly negative. This article seeks to trace the conversion standards' footprints in the United States, China, and India using several indexes such as the Shanghai Composite Index, Dow Jones index, and Nifty 50. The cost of closing down various indices on a daily basis, as well as the conversion standard upsides of the participating currencies, are all examined in this study. Furthermore, utilizing the OLS and GARCH models, this work provides insights into measuring the uncertainties about the impact of exchanging scale on financial exchange. According to the findings of OLS, changes in the swapping scale have had a minor impact on the daily closing costs of stock records in the individual countries. The conversion standard, on the other hand, has a major impact on trade volumes in all three stock markets. When compared to the SSE and DJI equities, the GARCH model predicts that the contingent shift will be less shocking, resulting in a smaller impact on Nifty trade volume. To replicate the impact of trade wars during the Covid-19 crisis, the final results imply that data from domestic and international financial transactions must include securities market transactions.

Can Anyone Implement the Law? The Discourse and Practice of Externalizing Legal Authority

Allowing private companies to de facto exercise legal authority is becoming increasingly common in several countries. Externalizing legal authority is sustained by a discourse replacing a conventional institutional approach to law enforcement with a functional approach where the agent is less important than efficiency and expected outcomes. Drawing on two brief case studies in Sweden—automobile inspections and reviews of international financial transactions—we argue that legal authority is transferred to for-profit actors with only a minimum of safeguards and accountability. For-profit actors are legal authority insiders but outsiders in the democratic chain of accountability.

The Global Economy after Covid-19: Challenges and Policy Resolutions

The COVID-19 pandemic disrupted the world economy in 2020. As of December 23, 2020 the World Health Organization (WHO) reports more than 76 million confirmed cases of COVID-19 and over 1.7 million deaths worldwide. At the intersection of the COVID-19 pandemic and the global economy, numerous issues pose challenges to scholars and policy makers. Financial globalization may help to slow down the de-globalization of trade after COVID-19. As international financial transactions can be easily implemented, international trade transactions would be facilitated. In addition, financial openness may motivate international trade.This special issue of the EAER features seven papers in both international trade and international macroeconomics and finance on the theme of “The Global Economy after COVID-19: Challenges and Policy Resolutions.”

Civil law regulation of investments in the digital infrastructure of the construction industry

Civil law regulation of investments combines regulations from different industry sectors and is characterized by its complexity. An efficient type of investment in the digital infrastructure of the construction industry is a financial lease. The purpose of the study is to characterize the civil law regulation of a financial lease. The methodological basis was the technical and legal method that ensures the effectiveness of the analysis of civil law regulation of a financial lease, the adequacy of the assessment of concepts and legal structures. The following results of the study have been obtained: the content of the international financial leasing transaction and the essence of a financial lease in Russia have been determined; particular aspects of the implementation of the UNIDROIT Convention in Russia have been identified. The content of the international financial leasing transaction reflects a threeway process with the participation of the equipment seller, lessor and lessee, who are linked by a supply contract and a lease contract. In Russian legislation, the term «financial lease» is used. The essence of a financial lease reflects both a lease contract with elements of sale in conjunction with the purchase option and the type of secured financing. Particular aspects of the implementation of the UNIDROIT Convention in Russia are due to different terminology and are associated with cross-border leasing. A draft federal law is undergoing a regulatory impact assessment, which provides for the introduction of a financial lease concept. Civil law regulation of leasing relations will ensure the effectiveness of attracting investments in order to improve the digital infrastructure of the construction industry.