Diversification Opportunities Research Articles

“To protect and serve” … and rule: constitutional sheriffs and the emergence of far-right extremism within local politics

ABSTRACT This paper explores the emergence of far-right extremism within local political institutions in the United States. Building on theories of intergroup contact and group threat, I hypothesize a set of community socio-demographic conditions which may foster public support for far-right extremism, and test these using a database of county sheriffs who aligned themselves with the constitutional sheriff movement – a movement closely tied to white nationalism – between 2012 and 2022. Findings offer support for both contact and threat dynamics; however, which relationship prevails depends on a novel optimal contact condition, where the likelihood of a constitutional sheriff is highest at particular levels of demographic diversity. Additionally, results indicate threat dynamics sourced from economic status, but opportunities for positive outgroup interactions and faster demographic diversification appear to build resilience against extremism. Notably, all identified associations are driven by racial rather than nativity-based dynamics, which I suggest is likely due to the nationalization of anti-immigrant narratives inducing perceived, over experiential, threats. These findings have important implications for understanding the local dynamics of far-right extremism and the infiltration of fringe ideologies into political institutions.

Windows of opportunity for unrelated diversification: a patent data analysis of the field of neurotechnology

PurposeThis study investigates the potential of low-income countries to mitigate technological lock-ins by exploiting windows of opportunity (WOOs). Given their inherent inclination toward path dependency, these countries often face challenges in diversifying beyond their established technological trajectories. We examine the pivotal role of adopting shorter cycle times of technologies (CTTs) in opening technological WOO, triggering unrelated diversification and accelerating technological catch-up.Design/methodology/approachUsing fixed-effect regression models, we analyze country-level patent data within the neurotechnology domain from 1995 to 2021 – a period marked by significant technological change since 2010. Our focus lies in comparing diversification and catch-up trends between low-income and high-income countries, while evaluating the performance of CTT.FindingsOur findings reveal that as low-income countries increase their knowledge complexity (KC), they tend to be locked into existing technological paths. To mitigate lock-in risks, they can strategically adopt technologies with shorter CTTs. These technologies act as catalysts, opening up technological WOOs and stimulating unrelated diversification. KC presents a double-edged sword in the catch-up process, but unrelated diversification can eliminate this dilemma.Practical implicationsOur study introduces the KC-CTT framework, proposing practical strategies to enhance and sustain countries’ competitive advantages.Originality/valueDiversification and catch-up emerge from two separate bodies of literature but present a conceptual overlap. This research bridges the gap between the two literatures by investigating the impact of CTT as their predictor variable.

Connectedness between green bonds, clean energy markets and carbon quota prices: Time and frequency dynamics

In this paper, we investigate the time and frequency dynamics of connectedness among green assets such as green bonds, clean energy markets, and carbon prices. Using daily price data, we explore return spillovers across these green financial markets by applying the novel framework on time and frequency dynamics proposed by Baruník and Krehlík (2018). This allows us to identify the direction of spillovers among our variables, and decompose the connectedness to differentiate between short-term and long-term return spillovers. Our results indicate that green bonds and carbon prices act as net receivers of shocks, but mainly in the short-term. We also observe a low level of connectedness among our clean energy markets across both low and high frequency bands, even during times of economic or political crisis. Additionally, there are periods in which connectedness between the clean energy assets is driven by the long-term. In periods of economic and political stability, carbon prices may also provide an interesting diversifying tool for short-term investors. Our results should be of interest for investors and portfolio managers who focus on green financial markets, by strengthening the notion that green financial markets can offer diversification opportunities, for both short-term and long-term investors. Policy makers could also benefit from our insights on conectedness in their work on short-term and long-term climate policies. This paper is the first to use this framework to investigate systematic risks within green financial markets.

Exploring Diversification Opportunities Across Islamic Stocks, Bitcoin, Oil and Gold in Indonesia

Exploring Diversification Opportunities Across Islamic Stocks, Bitcoin, Oil and Gold in Indonesia

Beyond silicon: Thin-film tandem as an opportunity for photovoltaics supply chain diversification and faster power system decarbonization out to 2050

In the last decade, the manufacturing capacity of silicon, the dominant PV technology, has increasingly been concentrated in China. This coincided with PV cost reduction, while, at the same time, posing risks to PV supply chain security. Recent advancements of novel perovskite tandem PV technologies as an alternative to traditional silicon-based PV provide opportunities for diversification of the PV manufacturing capacity and for increasing the GHG emission benefit of solar PV. Against this background, we estimate the current and future cost-competitiveness and GHG emissions of a set of already commercialized as well as emerging PV technologies for different production locations (China, USA, EU), both at residential and utility-scale. We find EU and USA-manufactured thin-film tandems to have 2–4 % and 0.5–2 % higher costs per kWh and 37–40 % and 32–35 % less GHG emissions per kWh at residential and utility-scale, respectively. Our projections indicate that they will also retain competitive costs (up to 2 % higher) and a 20 % GHG emissions advantage per kWh in 2050.

Der Standort Österreich aus Sicht der ökonomischen Komplexität

Abstract Economic complexity indicators attempt to map latent factors for long-term growth. In this analysis, we shed light on Austria as a business location using multidimensional complexity indicators that allow statements to be made about regional specialization, key technologies for the green transition and individual sectors such as the semiconductor industry. Austria usually occupies top international positions or is at least among the leaders, and this has remained stable over the last 20 years. This implies extensive opportunities for diversification into promising technologies. For individual brown industries, however, there is a risk of getting locked into products whose demand will decline in the course of the green transition.

Information flow between stock returns of advanced markets and emerging African economies

This article used transfer entropy techniques to examine information flows of daily stock market returns between advanced markets and emerging African economies. We modelled the information transfers across different periods of global shocks – the Federal Reserve Bank normalisation post the Global Financial Crisis, oil price shocks, BREXIT, the U.S.-China trade war, and COVID-19. Information interactions from advanced to African markets were moderate, occasionally mixed, and insignificant, leaving room for portfolio diversification. We also discovered some progress regarding the integration process between the developed and African markets on the back of noticeable information exchanges. Our findings from the information exchanges indicate that the stock markets of South Africa, Egypt, Nigeria, and Kenya have led the integration process ahead of their peers. To robust-check our results, we employed the wavelet multiple correlation (WMC) technique by modelling the multi-structure relationship among all the stock markets and confirmed the fast integration between the South African stock market and the developed markets. Our WMC results also revealed that portfolio diversification opportunities are feasible in the short term. The results present important implications for optimal risk management strategies and policy measures to anchor markets to withstand shocks.

Exploration of Sustainable Development Strategies for Budai Opera in the Eastern Fujian Region

This study explores sustainable development strategies for Budai Opera in the Eastern Fujian region, aiming to preserve and promote this traditional art form amidst modern challenges. Through a mixed-method approach, including qualitative interviews, quantitative surveys, and observational data, diverse dimensions of Budai Opera sustainability are examined. Results reveal a diverse demographic profile of stakeholders, varying levels of awareness and interest in Budai Opera, and preferences for cultural events. Economic viability, environmental impact, community engagement, policy support, audience preferences, and technological innovations are also explored. Key findings emphasize the importance of holistic approaches that balance economic, cultural, environmental, and social considerations in promoting Budai Opera sustainability. Addressing challenges such as declining audiences, economic pressures, environmental impacts, and policy constraints, while capitalizing on opportunities for diversification, innovation, community engagement, and advocacy, are essential for sustaining Budai Opera as a cherished cultural heritage in the Eastern Fujian region.

Portfolio Diversification Opportunities between Europe and India do Exist

In this article, a humble effort has been made to check the volatility transmission from European stock markets (FTSE100, DAX30, CAC40 and SMI20) to the Indian stock market (NIFTY50) to determine whether there is any opportunity for portfolio managers to diversify their portfolio. Various statistical tools and econometric models, such as vector autoregression (VAR) and dynamic conditional correlation (DCC)-multivariate generalised autoregressive conditional heteroscedasticity (MGARCH), are used to detect the volatility transmission from the European market to the Indian market. The FTSE100 and the NIFTY50 have been found to have bidirectional causality. VAR results suggest that only the DAX30 and SMI20 (Germany and Switzerland) markets have an impact on the Indian market. Finally, using DCC-MGARCH, the researcher found that information spillover takes place from all European countries to India over a longer period of time, but portfolio diversification between the London market (FTSE) and the Indian market (NIFTY) and German market (DAX) with Indian market (NIFTY) is possible over a shorter period of time. JEL Codes: C01, G1, G17

Long-run Relationship Between Turkey and SHANGHAI Cooperation Organization Stock Markets: Cointegration Analysis

This study investigates the presence of long-run cointegration relationships between the Turkish Stock Market and the stock markets of the Shanghai Cooperation Organisation (SCO) member countries. In a period of stagnation in the EU membership negotiations, Turkey's shift towards Eastern markets is noteworthy. Using a dataset covering the period from January 2014 to December 2023, this research applies various econometric analysis techniques such as Augmented Dickey-Fuller test, Johansen Cointegration Test and Granger Causality Test to examine the dynamic relationships between these markets. The findings from these analyses indicate that there is a significant long-run cointegration relationship between Borsa Istanbul and Moscow and Shanghai Stock Exchanges. This highlights the opportunities for strategic investment and portfolio diversification in these regions.

Analyzing the energy markets and financial markets linkage: A bibliometric analysis and future research agenda

AbstractThis study has been conducted using 200 articles from 1984 to 2023, by undertaking a meta‐literature review on the subject of energy markets and financial markets linkage (EFML). Our study consists of content analysis of 200 articles along with other analyses such as (i) co‐citation analysis, (ii) co‐authorship analysis, and (iii) cartographic analysis. We have identified five research streams: (1) Oil, stock, commodities markets, crypto currency, real estate, exchange rate linkage; (2) Oil and stock market linkage; (3) Energy as a portfolio diversification tool; (4) Dynamic linkage between the oil‐commodity market and stock market; and (5) Oil and other market linkages with respect to the COVID‐19 pandemic, the subsequent financial crisis, and other events. We have performed a comprehensive review of the EFML literature and provided the influential aspects of top journals and authors, the characteristics of the most studied topics, past and current key research streams in the EFML literature. We have also suggested 63 future research questions. Looking at the widespread interest of finance scholarship in the area of energy market linkages, the assessment of energy market linkages, and possible portfolio diversification opportunities and benefits, is of great importance and interest to researchers, policy holders, and portfolio managers.

Proposed Marketing Strategy to Attract Potential Customers and Increase Revenue through Product Diversification in Resik Wangi Auto Detailing

The automotive detailing industry in South Jakarta is experiencing heightened competition, impacting the revenue of Resik Wangi Auto Detailing. This thesis investigates the factors contributing to the revenue decline and proposes a comprehensive marketing strategy focused on product diversification and digital marketing to attract potential customers and increase revenue. The study employs a mixed-methods approach, combining quantitative surveys and qualitative interviews to gather data on customer preferences, market conditions, and business performance. The research identifies that the primary internal challenge is the lack of diversified services, while externally, increased competition and consumer behavior heavily influenced by digital marketing and service quality are critical factors. Key findings indicate that product diversification, particularly through bundled service packages like the “Signature Menu” and “Ultimate Menu,” can significantly enhance customer satisfaction and loyalty. Competitive pricing strategies and a robust digital marketing presence are essential in attracting and retaining customers. The study concludes that by implementing these strategies, Resik Wangi can effectively address its revenue challenges and achieve sustainable business growth.Recommendations for Resik Wangi include the immediate implementation of diversified service packages, enhanced digital marketing efforts, competitive pricing, and a strong focus on service quality. Additionally, future research should explore further diversification opportunities and the impact of emerging technologies on customer engagement and marketing strategies. This research provides a strategic framework for Resik Wangi Auto Detailing to navigate the competitive landscape, improve market positioning, and increase revenue through targeted marketing and service enhancements.

Addressing Soil Acidity Challenges: Promoting Tea Production as Alternative Crop in Ethiopia -- Review

The prevalence of acidic soils in Ethiopia presents a significant obstacle to improving agricultural productivity and restricts the implementation of sustainable farming practices that could enhance food security. Acidic soils are typically defined by their high concentration of hydrogen ions and a lack of essential nutrients, which collectively create an environment that is less conducive to the growth of many vital staple crops. Consequently, farmers faced with these conditions often struggle to achieve optimal yields, which exacerbates food scarcity and undermines economic stability. To effectively combat the issues posed by acidic soils, it is imperative to adopt targeted soil management strategies that are specifically designed to address these challenges. This may include the implementation of soil reclamation techniques that aim to neutralize soil acidity and restore nutrient balance. Additionally, comprehensive initiatives must be undertaken to promote agricultural resilience, which could involve the cultivation of alternative crops that are better suited to thrive in acidic conditions, such as tea. This paper aims to provide a thorough examination of several key aspects related to the development and management of acidic soils in Ethiopia. It will investigate into the processes that contribute to the formation of acid soils, as well as the various types of acid soil present in the country, explore the distribution of acidic soils throughout Ethiopia, highlighting areas that are particularly affected and the implications for local farming practices. Furthermore, the analysis will address the specific impact of soil acidity on crop growth, yield, and quality. It will investigate how soil acidity influences the availability of essential nutrients for plants, thereby affecting the overall health and productivity of crops grown in these conditions. The promotion of tea production in Ethiopia is another critical topic that tea cultivation not only offers a viable alternative crop but also presents opportunities for economic development and diversification in agricultural systems. The mechanisms that confer aluminum resistance in tea plants will be discussed, as well as the ways in which aluminum can stimulate growth in these crops, thereby illustrating the unique resilience of tea plants in acidic environments. By addressing these complex issues holistically, the paper seeks to contribute valuable insights and foster a deeper understanding of how to navigate the challenges posed by acidic soils in the Ethiopian agricultural landscape.

Growth of Oncorhynchus mykiss (Rainbow Trout) through a Recirculation System in the Foothills of the Extreme North of Chile.

Given the overexploitation of fisheries and the growing consumption of sea products, aquaculture is emerging as an alternative to meet the demand for protein at regional, national, and global levels. In northern Chile, the foothills of the Andes offer an opportunity for sustainable economic diversification. In this study, results of a rainbow trout (Oncorhynchus mykiss) culture in a recirculation system are presented, analyzing its growth and performance under altitude conditions. The research was carried out in Copaquilla, a small area in the foothills of northern Chile, 3000 m above sea level. Five thousand 15 g juvenile trout were acquired and transported by land from the Rio Blanco fish farm, successfully traveling more than 2100 km. During the 20-month-long culture, several growth parameters were evaluated, including specific growth rate, percentage of weight growth, feed conversion factor, survival, and Fulton's condition factor. All these parameters were within the normal growth range for trout, evidencing good-quality growth of the organisms. The results offer evidence that rainbow trout farming at 3000 m above sea level is viable and presents a viable performance, opening new opportunities for aquaculture in northern Chile.

Unraveling stock exchange connections: an empirical study of India, US, Hong Kong, Germany, France and Amsterdam

PurposeThe current study immerses itself in the realm of diversification prospects within a select group of preeminent global stock exchanges. Specifically, the study casts its discerning gaze upon the financial hubs of the United States, Hong Kong, Germany, France, Amsterdam and India. In this expansive vista of international financial markets, the present analytical study aims to unravel the multifaceted opportunities that lie therein for astute portfolio management and strategic investment decisions.Design/methodology/approachThe study encompasses daily time series data spanning from 2019 to 2022. To assess the interconnectedness among these stock indices, advanced statistical techniques, including Johansen cointegration methods and vector autoregressive (VAR) models, have been applied.FindingsThe research outcomes reveal both unidirectional and bidirectional relationships between the Indian, Hong Kong and US stock exchanges, encompassing both short-term and long-term time frames. Interestingly, the empirical findings indicate the presence of diversification opportunities between the Indian stock exchange and the stock exchanges of Germany, France and Amsterdam.Research limitations/implicationsThese insights hold significant value for both Indian and international investors, including foreign institutional investors (FIIs), domestic institutional investors (DIIs) and retail investors, as they can utilize this knowledge to construct more effective and diversified investment portfolios by understanding the intricate interconnections between these prominent global stock exchanges.Originality/valueThis research undertaking aspires to bring coherence to a landscape rife with divergent interpretations and methodological divergences. We are poised to offer a comprehensive analysis, a beacon of clarity amidst the murkiness, to shed light on the intricate web of interconnections that underpin the world's stock exchanges. In so doing, we seek to contribute a seminal piece of scholarship that transcends the existing ambiguities and thus empowers the field with a deeper understanding of the multifaceted dynamics governing international stock markets.

Beyond Petroleum? The Diffusion of Alternative Fuels in the United States, 1994–2015

ABSTRACT What determines whether technological innovations are adopted or abandoned? We leverage comparative data from three competing alternative fuel technologies to explore the conditions under which social movement organizations and industries support or challenge the adoption of emerging technologies. Empirically, we examine the diffusion of three technologies – electric, ethanol, and compressed natural gas – in the United States between 1994 and 2015. The comparison of results from quantitative analyzes of each case shows that environmental organizations can have different effects on the adoption of technologies that challenge fossil fuel dominance and that the effects change over time. The results also indicate that an incumbent industry that has an opportunity for diversification can positively influence the adoption of the technology, and that partial abandonment results when a technology is not supported by either environmental organizations or an incumbent industry.

Breaking the glass ceiling in banking: the impact of female directors, digitalization, and income diversification on financial stability

Purpose This study aims to analyze the impact of board gender diversity (BGD) on a bank’s financial stability. Moreover, it also examines whether digitalization and income diversification act as mediators (individual and serial) in this relationship. Design/methodology/approach Hypotheses were tested using data from Pakistan’s banking sector financial statements from 2017 to 2021. A two-step analytical approach was used: panel regression in STATA for initial hypothesis examination, followed by mediation analyses using bootstrapping in SPSS. In addition, mixed-effect ML regression was conducted to verify causation and ensure robust findings. Findings Results demonstrate that BGD, digitalization and income diversification are positively associated with higher financial stability. Moreover, as hypothesized, both digitalization and income diversification individually and sequentially mediate the relationship between BGD and banks’ financial stability. Research limitations/implications It is important to acknowledge the study’s limited five-year timeframe. Further investigation is needed to determine the optimal board compositions, especially considering the study’s inclusion of up to 25% female directors on boards. Practical implications Policymakers and top management should prioritize increasing the number of female directors on boards for diversity. Banks that involve female directors can benefit from the synergies between gender diversity and digitization, along with the unique perspectives these women offer. This cooperative dynamic enables banks to explore and capitalize on innovative income diversification opportunities, enter new markets and ensure financial stability. Social implications Research findings emphasize promotion of gender equality and meritocracy through increased female director representation. This fosters a more inclusive and cooperative decision-making culture, benefiting individual banks and setting a model for other sectors. Ultimately, it contributes to greater social acceptance of women executives. Originality/value The study reveals a novel mechanism, emphasizing the revolutionary impact of active female directors in tandem with digitalization, amplifying chances for income diversification and accelerating increased bank viability.

Spillover effect of the geopolitical uncertainty on the cryptocurrency market

PurposeThis study aims to examine the influence of geopolitical uncertainty on cryptocurrency markets (CM).Design/methodology/approachUtilizing two distinct sets of daily returns data spanning from January 1, 2019, to May 4, 2023, the analysis employs the geopolitical risk (GPR) index formulated by Caldara and Iacoviello (2022), which encapsulates two pivotal events: the COVID-19 pandemic and the Russia–Ukraine conflict. The cryptocurrency market (CM) encompasses Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and Dogecoin (DOGE). Employing the DCC-GARCH model and supplementing it with wavelet coherence analysis to discern perceptual distinctions between short- and long-term market reactions.FindingsThe main findings indicate that the GPR index clearly impacts the return of CM in the short-, mid- and long-term periods. BTC exhibited the highest volatility in response to changes in the GPR index. The cryptocurrency market offers a better diversification opportunity, and the impact of geopolitical events varies across time, with their direction and magnitude closely related to the specificity of the CM.Practical implicationsThis research is helpful for financial market investors, portfolio and risk managers, make informed decisions about including cryptocurrencies in their investment portfolios to mitigate the risks in uncertainty period.Originality/valueCryptocurrency market volatility is treated weakly during the risk period. With advanced statistical method, this study links two important events: the COVID-19 pandemic and the Russia–Ukraine conflict and selects the top four cryptocurrencies constituting 80% of the market. This study examines the impact of geopolitical risk on the cryptocurrency market and shows that this market is considered a safe haven.

How do global commodities react to increasing geopolitical risks? New insights into the Russia-Ukraine and Palestine-Israel conflicts

The present study examines the impact of geopolitical risk on global commodities returns by including both major conflicts spanning from January 3, 2023 to December 18, 2023 to cover both the Russia-Ukraine and Palestine-Israel wars. Our study utilizes the QVAR model, the Quantile-on-Quantile regression (QQR) and the frequency causality test. Surprisingly, during the pre-conflict period, our findings reveal a weak positive influence of GPR on commodities, indicating their resilience to extreme negative shocks. Variance decompositions further highlight the limited role of GPR in explaining the commodity price variance. The spillover analysis highlights a low interconnectedness between GPR and commodities, demonstrating a high hedging effectiveness against expected negative GPR shocks. The heterogeneous reaction of commodities to extremely positive GPR shocks suggests diverse responses, emphasizing the need for nuanced investment strategies. Conversely, during the crisis periods, commodities exhibit a resilience to both negative and positive shocks from geopolitical tensions, therefore, presenting diversification opportunities for investors. The causality frequency analysis emphasizes the complex dynamics between GPR and commodities in both the time and frequency domains. Our study also offers significant implications for investors, portfolio managers, and policymakers, advocating for recognition of the weak pre-conflict link between GPR and commodities.

Breaking the resource curse: The impact of digital economy on the sustainable transformation of resource-based cities

Resource-based cities (RBCs) depend heavily on the extraction and processing of natural resources, resulting in relatively simple economic structures. However, the rise of the digital economy (DIGITAL) presents numerous opportunities for economic diversification and sustainable development. Further investigation is necessary to explore DIGITAL's potential to overcome the resource curse. This study examined the influence of digital economic development on the sustainable transformation of 115 RBCs in China from 2011 to 2019. Robustness and heterogeneity tests were conducted to ensure reliability of the findings. This study concluded that DIGITAL plays a pivotal role in driving the sustainable transformation of resource-based cities (STRBC). This conclusion was supported by various robustness tests. Urban economic efficiency and the vitality of innovation and entrepreneurship were identified as key channels through which DIGITAL contributes to STRBC. Moreover, governmental environmental concern can enhance DIGITAL's role in promoting STRBC. Furthermore, DIGITAL is particularly crucial for mature, declining, and regenerating cities, and has a stronger impact on cities with larger spatial scales. This may be attributed to factors such as the levels of economic development, infrastructure construction, and policy support in these regions.