Current Issue : July-September Volume : 2024 Issue Number : 3 Articles : 5 Articles
Regional integration in Africa is deepening, and the existing regional groupings are making frantic efforts to remove barriers to trade. One way in which trade among countries can be promoted is through the establishment of free trade areas with member-states. However, regulatory quality that supports international trade in most African countries is exceptionally low. This study investigates the effect of the Common Market for Eastern and Southern Africa (COMESA) free trade area (FTA) on the bilateral export efficiency of member-states over the period 1997–2021. The results obtained using a stochastic frontier specification of the gravity model and panel data of 16 exporting COMESA member-states show a positive effect of the COMESA free trade area on export efficiency. In addition, the study finds regulatory quality to have a positive impact on export efficiency. Controlling for regulatory quality, the results also show that the FTA stimulates export efficiency. Hence, non-FTA COMESA members ought to contemplate joining the FTA in order to expand their respective exports with other member-states to their maximum potential....
This study delves into the pivotal role of socioemotional wealth (SEW) in shaping the global expansion strategies of Moroccan family businesses. By employing a quantitative approach, we scrutinize the intricate dynamics between SEW and internationalization decisions, focusing on control preferences during global ventures. Our investigation encompasses a comparative case study analysis of 51 Moroccan family enterprises, enriched by insights from semi-structured interviews and organizational data. Preliminary indings underscore the necessity of integrating SEW considerations in strategic planning for successful internationalization, highlighting a nuanced understanding of control mechanisms in family irms' cross-border operations. This research contributes to the broader discourse on family business internationalization, offering a novel perspective on the interplay between emotional wealth and global market engagement....
The paper aims to provide a rational and objective assessment of the impact of trade integration between Tunisia and the European Union on imports of industrial products, following the 1995 Association Agreement. In this study, we adopt a multi-step approach. After an analysis of the stylized facts, a gravity model is applied and estimated in several variants to assess the determinants of trade. The results obtained are used to calculate creation and diversion of trade between Tunisia and the European Union. We achieved the following main results: coefficients of the traditional variables of the gravity model have generally expected signs; customs tariffs, transport costs which are measured by distance, good governance, tend to influence the development of bilateral trade flows. The free zone-trade between Tunisia and the EU has not been favorable for Tunisia and has a negative impact on the Tunisian economy because the effects of trade diversion are more important than trade creation effects. The findings from of this study may prompt policymakers to open up to other markets and consider diversifying them. They may also lead to the establishment of a stand-by arrangement, the revision of the 1995 Association Agreement and above all, the use of the WTO safeguard clause as an emergency measure to cope with this rapid increase in imports, particularly from certain trading partners, and to avoid traffic detour to the benefit of European products and to the detriment of products from the rest of the world. This article presents for the first time a quantification of the creation value and trade detour at constant price in Tunisia using an in-depth empirical analysis, and thus contributes to the existing literature studying the impact of the Association Agreement between Tunisia and the EU....
This note clarifies some of the stability issues that arise in the consideration of alternative interest rate rules for monetary policy. The main finding is that a nominal interest rate peg leads to instability in the inflation rate (which can go in either direction) and general economic instability, whereas a real interest rate rule is conducive to stability....
This paper aims to assess the impact of capital structure on the stock returns of Egyptian firms with the purpose of providing assistance to investors when deciding between alternative investment choices. Data were collected for 75 firms listed on the Egyptian Stock Exchange over the period 2017–2022, excluding financial firms such as banks and insurance companies. Statistical techniques were conducted using the Statistical Package for Social Science (SPSS) version 20. The results revealed a significant positive impact of capital structure measured by the debt-to-equity ratio on stock returns and an insignificant impact on capital structure measured by the financial leverage ratio on stock returns....
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