Increase In Trading Volume Research Articles

Air quality improvement effect and future contributions of carbon trading pilot programs in China

The carbon trading policy is a market-based tool aimed at reducing carbon emissions and may simultaneously yield a combined air quality improvement effect. This study employs a two-way fixed-effect model to estimate the causal relationship between daily carbon trading volumes and air pollution from 2015 to 2020. Results show that a one percent increase in daily carbon trading volumes leads to a reduction of 0.23% in PM2.5 and 0.26% in PM10. In addition to particulate matter, the carbon market can significantly reduce SO2 and air quality index. We also examine provincial and regional heterogeneities and find an apparent reduction effect in Beijing, Guangdong, Hubei, Tianjin, and cities in the more economically developed eastern region. Notably, our estimations indicate that the carbon market’s impact on reducing air pollution is most significant annually during the carbon quota compliance period and tends to intensify over the years. Furthermore, we predict the carbon trading scale to meet China’s stringent future air quality improvement target, indicating that the carbon trading volumes are projected to be 450 million tons in 2035 under the high contribution scenarios. These findings can provide insightful policy implications for China and other countries to establish more flexible and well-rounded carbon trading policies.

Impact of COVID-19 on returns-volatility spillovers in national and regional carbon markets in China

China wants to play a leading role in international carbon reduction and has ambitious reduction plans. China is one of the largest carbon emitters globally with an increasing trade volume in both national and regional markets. Owing to carbon emissions are regarded as key policy instruments and important financial assets thus It is important to analyze volatility spillovers between national and regional markets. The Diagonal BEKK model is used to examine daily financial returns, conditional covariances, and volatility spillovers across markets before, during, and after COVID-19. The empirical results show that the magnitudes of the spillovers during COVID-19 are much larger than before and after COVID-19 which implies the impact of COVID-19 on China's economy leads to greater risk transmission across carbon markets. China's experience (from regional to national) was useful in informing the channels of risk transmission and helping understand the relevance of carbon markets for investment decisions and public policymaking in the international carbon markets. Finally, we discuss the motivations, challenges, and possible forms of cooperation between China and the Eurozone on establishing a common carbon market are discussed.

Impact of Net Foreign, Return, Rupiah Exchange Rate on Capital Market Liquidity in Indonesia

Trading volume (liquidity) is one of the important indicator for investors to monitor the movement of stock prices on the Indonesian stock exchange (IDX). Investors are attracted to stocks that provide high returns, have a tendency to rise in price, and have high liquidity. One of the factors that affect liquidity is investment in foreign stocks, where foreign investors are still the catalyst for stock movements in the Indonesian Capital Market. This study uses time-series data obtained from all listed stocks as a component of the calculation of the Composite Stock Price Index (IHSG) based on the average daily trading transaction value during the 2017-2019 period. This study consists of four variables where one dependent variable is liquidity with value proxy and three independent variables which are net foreign, return, and the exchange rate of the rupiah against the US dollar. These variables were then analyzed qualitatively in the form of descriptive statistics and multiple linear regression analysis. The result of the research shows that net foreign exchange increases trading volume. Based on the results of the descriptive analysis for the period 2017-2019, foreign investors still dominate the stock market in Indonesia. The dominance of foreign stocks can be interpreted as high investor confidence in the ability of the Indonesian government and the positive perception of foreign investors in the Indonesian capital market which is still very profitable for their investment. The opposite result is in the variable return where liquidity increases in a bearish market. In contrast, the depreciation of the rupiah against the dollar increased trading volume, although not significantly.

Does a Long-Run Relationship Exist between Trade Openness and Carbon Dioxide Emissions in Sri Lanka?

In recent years, the process of globalization has provided a great deal of support to international trade, which has led to the increase in global trade volume. However, as far as the negative characteristics of international trade flows are concerned, the extensive production and trade needed to meet global demands have led to higher energy consumption and higher carbon dioxide (CO¬2) emissions. Sri Lanka has been trading since 1977, so the objective of this study is to investigate the existence of the relationship between trade and carbon dioxide emissions in Sri Lanka. Using annual time series data running from 1980 to 2014, this study employs Johansen’s cointegration method for econometric analysis. The findings of the study derived from the analysis revealed that the intended variables are likely to move together in the long run. The study suggests that reprocessing emissions, pollution prevention actions, and the introduction of low carbon technology in trade can mitigate carbon dioxide emissions.

Impact of Green Logistics on International Trade: An Empirical Study in Asia–Pacific Economic Cooperation

Green logistics has been a trend in the world. This research evaluates the impact of green logistics on international trade among APEC nations over the period of 9 years (2010 – 2018). The research uses an augmented gravity model to investigate the effects of green logistics on international trade through the Environmental Logistics Performance Index (ELPI). The results show that exporting countries applying green logistics increase the export volume to other members of APEC. In the long term, importing countries engaging in green logistics increase trade volume with green logistics countries in APEC. With the aim of enhancing international trade, APEC countries must improve domestic logistics performance. Through those analyses, research proposes several recommendations to encourage nations and enterprises to apply green logistics effectively.

인천∼제주 해상물류 활성화 방안에 대한 연구

On December 10, 2021, the ‘Incheon-Jeju’ ferry started its first regular service after 7 years and 8 months. The ferry, which had been cut off after the Sewol ferry disaster in April 2014, was reopened. The resumption of the ‘Incheon-Jeju’ waterway is expected to revive the local economy of the Incheon coastal pier and revitalize the logistics business of the Incheon coastal pier due to the increase in the supply of Jeju agricultural and marine products. In the meantime, the flow of logistics from Jeju to the Seoul metropolitan area via Honam is expected to lead directly from Jeju to Incheon Port, reducing logistics costs and resolving the distortion of logistics, thereby opening the door to logistics business through maritime transport. In addition, Incheon Port Authority expects that the annual number of coastal passengers will recover to 1 million, and it is expected to increase the number of coastal passengers, revitalize the area around the coastal pier and revitalize the local economy by contributing to the expansion of Incheon Port infrastructure and revitalization of coastal tourism. Accordingly, it is necessary to study a plan to revitalize the local economy according to the increase in maritime freight volume between Incheon and Jeju. It is time for policy proposals to revitalize the Incheon regional economy due to the increase in the Incheon-Jeju maritime trade volume. Therefore, in this study, the current status of maritime logistics between Incheon and Jeju before and after the Sewol ferry disaster was investigated, and the ‘total employment of An analysis model was developed for ‘inducing effect’ and ‘economic inducement effect’. Based on this research model, “total employment induction effect” and “economic inducement effect” caused by the increase in maritime transport volume were calculated and “how much the Incheon local economy is activated” simulation was performed. In other words, after the Sewol ferry disaster in 2014, only about 5-6% of Jeju Samdasoo and Jeju agricultural products entered Incheon Port, and on December 10, 2021, sea transportation from Jeju → Incheon Port was resumed and about 60 to 65% of Jeju Samdasoo and Jeju agricultural products were resumed. It is expected to flow into Incheon Port again. Therefore, by estimating the change in future cargo volume for the next three to five years, such as 2022 to 2025, the number of jobs created by the total employment induction effect and the economic inducement effect were calculated. In other words, when the vitalization of maritime logistics between Incheon and Jeju is normalized, Jeju Samdasoo, Jeju agricultural products, etc. will flow into Jeju → Incheon Port, and the volume of marine cargo is expected to increase from a minimum of 1.45 million tons to a maximum of 215 tons. It is expected that the total employment inducement effect will occur from a minimum of 1,629 people to a maximum of 2,618 people. In addition, it was analyzed that there was an economic inducement effect of at least 106 billion won to a maximum of 170.3 billion won due to an increase in the amount of sea freight flowing from Jeju to Incheon.

Immigration narrative sentiment from TV news and the stock market

Often debated in the media, immigration is a contentious topic in the U.S. Shiller (2017), and Shiller (2019) posit that narratives can drive economics events. This paper investigates the relationship between the immigration narrative sentiment and the stock market using the sentiment extracted from of 1.3 million TV news transcripts. Results from Panel Vector Auto Regression (PVAR) estimations show that the immigration narrative sentiment is related to stock market indicators. A positive shock to the immigration narrative sentiment Granger-causes a statistically significant and economically meaningful increase in the stock prices, a decrease in implied volatility, and a statistically significant but economically small increase in trade volume. However, stock market variation does not affect the immigration narrative sentiment. The effect of the immigration narrative sentiment shock to market indicators is long lasting suggesting that the immigration narrative likely contains fundamental information about equities that has not been priced.

A Study on the Current Situation and Problems of Payment Methods in the International Trade between Korea and China

Purpose This study provides practically useful guidelines for Korean companies by analyzing the status of the payment methods of Korea and China, which is increasingly important in accordance with the recent increase in trade volume, discovering problems, and suggesting solutions. Design/Methodology/Approach This study included a comprehensive review of prior domestic and foreign literature as well as e-mail consultations with experts in the payment field around the world. Findings Findings revealed that as for the payment methods of Korea’s exports in 2021, the remittance method accounted for 70.3%, letter of credit method was 7.6%, collection method was 8.3%, and other methods were 13.8%. The remittance method accounts for 70% of the total export value, followed by the collection method and L/C method. Since there are no official statistics on payment methods in China, it is impossible to grasp the status of China’s recent payment methods. Research implications This paper presented the status and problems of payment methods of Korea and China. Korea needs to revise the statistics of payment methods, and China needs to perform official statistical work on payment methods.

Global Financialisation, Trade Facilitation and International Flows

This study evaluated global financialisation, trade facilitation and international flows. The study specifically examined the effect of tariffs imposed on export and import, information and communications technology (ICT) development and usage in business, documents to import and documents to export (Numbers) and labour force in the economy on the net national income of Nigeria. Data collected were analysed using the ARDL model. The result of the analysis shows that the tariff imposed on export and import is negative and insignificantly impacted the net national income of Nigeria. It was also observed that ICT development and usage in business has a positive and insignificant effect on the cash flow rate in Nigeria. The study further shows a positive but insignificant impact of documents to import and documents to export (Numbers) on the net national income of Nigeria. It was also observed that the labour force in an economy has a positive but insignificant effect on the net national income of Nigeria. The study clarifies that trade flow is continuously increasing in Asian countries. It benefits all those countries that are actively performing well in international trade. It helps them with economic development and rising living standards. But some trade facilitation determinants need to be improved for a better advantage. Improvement in these determinants will result in an increase in trade volume with faster and cheaper trade flow.

Assessing the need for the designation of the Yellow Sea Particularly Sensitive Sea Area (PSSA)

With each passing decade, industrial and economic activities have increased the severe contamination of the Yellow Sea and marine pollution, caused by various pollutants, has reached an alarming level. One of the main sources of contamination are pollutants from the international shipping industry. Due to an increase in maritime trade volume, driven by the rapid economic growth of China and South Korea, the danger of polluting incidents caused by shipping activities such as accidental and operational discharges from ships continues to rise. The semi-enclosed Yellow Sea poses geographical disadvantages. The depth of the Yellow Sea is relatively shallow. The width of the Yellow Sea does not exceed over 400 nm. China, South Korea, and North Korea have a common interest in the Yellow Sea. Pollution incidents involving oil, hazardous and noxious substances (HNS), or other pollutants from ships which occur in the territorial sea of one of the Yellow Sea states may have serious impacts on the maritime zone of another. Due to narrow sea areas of the Yellow Sea, there is ongoing dispute over maritime boundary delimitation of the Exclusive Economic Zone (EEZ) in the Yellow Sea. Concurrent Chinese and South Korean jurisdictions exist. These disputes are the primary factor hampering regional cooperation when dealing with regulatory instruments in an overlapping EEZ area. This article serves as a starting point for discussion, to make the case for the necessity of a practical regulatory instrument and regional cooperation to prevent vessel-source pollution in the Yellow Sea. In order to overcome the jurisdictional issue in an overlapping EEZ area and effectively address it, this article argues that the designation of a Yellow Sea Particularly Sensitive Sea Area (PSSA) is required. This study is not only assessing need for PSSA designation, but it is reviewing the geographical and environmental significance of the Yellow Sea.

Determinants of energy consumption in BRICS-T countries

With the emergence of globalization borders are fading out and economies are getting ever more interdependent with increasing trade volumes. As global population goes up, consumption demand reinforces increases in output. In this regard, energy can be regarded as one of the most critical inputs in the process of development and growth. Accordingly, the process of growth and industrialization has been gradually increasing the dependence of world economies on energy. Energy consumption has been steadily growing with each passing year, hence increasing the dependence on energy even further. This study examines the factors that determine energy consumption. For this purpose, the factors that determine energy consumption in BRICS-T countries (Brazil, Russia, India, China, South Africa, and Turkey) are analyzed for the period of 1992-2018. Foreign direct investments, energy prices and economic growth are taken to be the potential factors determining energy consumption. Error Correction Method (ECM) proposed by Westerland and LM Boostrap cointegration tests suggested by Westerland and Edgerton is used to test the existence of long term relationship between the series. Long term cointegration coefficients have been estimated using Common Correlated Effects Mean Group (CCEMG) estimator and Augmented Mean Group (AMG) estimator. The findings obtained from the analysis confirm that, firstly, all three variables (foreign direct investments, prices of energy, and economic growth) are critical and have a long-term relationship with energy consumption. Secondly, the series of foreign direct investments is significant in all countries subject to our panel data analysis. Economic growth series is only significant for Turkey and China. Energy prices series are found to be significant in Russia, S. Africa, and China.

Public perception and firm’s market performance: The case of Annual Report Award in the emerging economy

It has been a general belief that the public’s perception can affect the firm’s value. Subsequently, many initiatives have been made by various governments to pull such effects on their listed firm. Particularly in Indonesia, one of those initiatives is known as Annual Report Award (ARA), whereby its participants are required to show their good corporate governance (GCG) practices. Thus, the purpose of this study is to investigate the 2018 ARA’s effect on the market performance of its listed firms’ categories. In which, the analysis focuses on the categories’ abnormal returns and the abnormal trading volume. Through the application of the event study methodology, the findings imply that the Indonesian capital market is more attentive to the participants within the financial state-owned enterprise category, and 2018 ARA has helped increase the participants’ abnormal return within the respective category. Although an increase in abnormal returns is not necessarily accompanied by an increase in abnormal trading volume, the findings also suggest that the 2018 ARA can influence participants’ stock returns across multiple market indices. Hence, the ARA event could influence the public’s perception and, simultaneously, bringing added value to its participants.

중력모형을 통한 국경 간 전자상거래 무역패턴 분석

This study examines the applicability of the gravity model of conventional trade to an analysis of the trade patterns of cross-border e-commerce. As a result of the analysis, the amount of trade between trading countries increased as the national income increased, while the trade amount decreased as the distance between the capitals increased, as in the existing gravity model. In addition, the increase of the consumer price index and the number of Internet users were found to have a very significant effect on the increase in trade volume. The analysis shows that the FTA has a more significant effect on the increase of trade volume than other regional economic cooperation organizations. Based on the results, it is essential to provide official development assistance (ODA), including Internet infrastructure, and to include convenience terms for the increase of e-commerce trade volume when resigning or renegotiating the FTA in order to secure a competitive edge in cross-border e-commerce trade in the future.

Trading and Volatility in Dual Market: Theory and Evidence from Real Estate

This article investigates the informational role of trading volume and the impact of transaction costs on trading volume and the return dynamics in public and private markets, using real estate as an application. The model extends Kyle (1985) in a framework with two markets associated with asymmetric transaction costs across markets and over time. It derives equilibrium and predicts that at the market downtime, investors’ incentive to trade in the public market increases while that in the private market declines based on a return-cost trade-off, which is when transaction cost in the private market accelerates. Trading volume induces return volatility. The marginal effect of trading volume on price increases monotonically with uncertainty in asset values and transaction costs. An assessment using a simulation method and data on public and private real estate markets in the United States from 1996 to 2014 validates the model’s propositions. We offer two explanations for the increased real estate investment trust (REIT) return volatility during the financial crisis: increased trading volume in the REIT market and a larger marginal impact of volume on price during market downtime.

The Effects of Trader Type on Market Maker’s Effective Bid-Ask Spread

Using intraday trading data on U.S. Treasury note futures, we analyze the effects of trader type on market maker’s effective bid-ask spread. We find that market makers tend to experience losses when price uncertainty increases in the market, even though market maker’s effective BASs are positive on average. When the overall trading volume increases, the effects of economies of scale and competition between market makers and exchange member institutions cause market makers to narrow the effective bid-ask spread. However, when off-exchange traders increase their trading volume, market makers respond by lowering their buy prices and increasing sell prices, thereby widening the effective bid-ask spread. The results reveal that market makers protect themselves against risk when trading with off-exchange traders.

The man in the middle—liquidity provision under central clearing in the credit default swap market: A regression discontinuity approach

AbstractIn this study, I analyze the effect of central clearing on credit default swap (CDS) market breadth, depth, and resiliency using a regression discontinuity design. I find evidence for a decrease in absolute bid–ask spreads and bid–ask spread resiliency and an increase in gross trading volume with the beginning of central clearing. However, we observe positive effects of central clearing on CDS market liquidity only for CDS contracts of high fundamental and liquidity risk. Further results indicate that lower trading frictions, that is, counterparty risk and regulatory capital charges, may explain the positive effects of central clearing on CDS market liquidity.

Heroes, just for one day: The impact of Donald Trump’s tweets on stock prices

We analyze the effect of Donald Trump’s tweets on individual stock returns. We use intraday (minute-by-minute) data in order to uncover causal effects of the tweets on prices and trading activity. We find that the tweets cause increased trading activity but do not have lasting effects on stock prices. We also find evidence of abnormal returns, increased trading volume and increased investor attention before the tweets. This finding is consistent with Donald Trump’s tweets not providing new information but rather being comments on events that happened, and already attracted investor attention, before the tweet.

African Continental Free Trade Area treaty and CO2: A volatility-driven CO2 mitigation pathways model for ratified countries

The African Continental Free Trade Area (AfCFTA) agreement is expected to boost continental trade volume, but the effects of the expected increase in trade volumes on carbon dioxide(CO2) emissions has not been explored. In addition, although attempts are being made towards providing a reliable CO2 forecasting and mitigation values, existing mitigation pathways have been found to be illusory, misleading, and largely irrelevant due to their inability to inculcate observed volatilities in the core modeling. This study considers 25 countries that have ratified the AfCFTA agreement investigates their CO2 determinants, and proposes relevant and representative mitigation roadmaps for each country. A novel model that considers growth, maximum and minimum volatilities for all the variables is constructed to propose these roadmaps. The empirical results on causal relationships find that whiles trade openness, urbanization, and economic activities are positive determinants of CO2, renewable energy, human capital, and financial development are negative drivers. Among the factors examined, trade openness has been identified as the most significant long-term driver of CO2 within AfCFTA countries. The results from our prediction model show that the 25 ratified countries will collectively increase their emissions by 17% relative to their 2015 emissions level if no measures are taken. However, if these countries follow our proposed radical roadmaps, they will collectively emit zero carbon emissions by 2028. In order to achieve a massive reduction in CO2 emissions, policymakers within the AfCFTA should adopt radical mitigation roadmaps as proposed. Future studies should focus on developing models to identify the cost and highlight the feasibility of our strategy.

The spillover effect of focal firms’ cybersecurity breaches on rivals and the role of the CIO: Evidence from stock trading volume

This study investigates whether there is any spillover uncertainty regarding a rival firm’s future operations upon a focal firm’s announcement of cybersecurity breaches and whether the existence of a chief information officer (CIO) in rival firms can reduce this spillover uncertainty. Using abnormal trading volume to capture the change in investors’ expectations, we show that compared with the focal firms, rival firms experience an increase in abnormal trading volume following the focal firm’s announcement of a security breach. The findings suggest that the spillover effect generates even more uncertainties toward these nonbreached rival firms regarding the impact of the focal firm’s security breach. However, CIOs in nonbreached rival firms can play a shielding role in mitigating such effects. Our study contributes to the literature on the impact of cybersecurity and has policy implications for encouraging a strategic perspective when managing cybersecurity risks.

The stock market infrastructure development in formation of the investment bank business model in Ukraine

Introduction. Modern trends in the world economy development cause an objective process of increasing stock market role and stimulate forming of investment bank business model in the domestic financial markets.
 Aim and tasks. The aim is to determine the role of the stock market infrastructure development in formation of the investment bank business model in Ukraine. It is necessary to perform the following tasks to achieve this goal: to determinate direction of Ukrainian financial market development and to analyze dynamic of the structure of loan and investment bank portfolio in last five years which allow to evaluate forming of the investment bank business model in Ukraine; to estimate the stock market infrastructure development through its participants.
 Results. The analysis of the loan and investment bank portfolio structure has shown rising of banks’ interest to the operations in the stock market and forming of the investment bank business model in Ukraine. But the structure of the investment portfolio of Ukrainian banks is dominated by domestic government bonds. The main reasons of such investment structure: the low total trading volume in the stock market; the absence of other financial instruments in the stock market; the low level of stock market development through the need to form stock market infrastructure. Studying the stock market infrastructure essence has substantiated the using of institutional approach to identify the level of its development. To the infrastructure participants in the stock market it is carried out organization of trade in financial instruments, clearing institutions, depository system, information, analytical and rating agencies. The infrastructural participants of the stock market in Ukraine has been characterized and analyzed.
 Conclusions. The Ukrainian stock market infrastructure is actively developing in the direction of creating conditions that brings it as close as possible to European and world standards. Such situation will make foundation of the investment bank business model forming. But conducted research has shown that it is necessary, on the one side, to stimulate the increase in stock trading volume and, on the other side, to make the stock market more accessible not only to investors, but to individuals too. The development of information technologies as an integral part of the stock market infrastructure in Ukraine has been worked out.