Test by the SVECM model of the impact of the exchange rates and foreign direct investment on the economic growth of the Maghreb region
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DOIhttp://dx.doi.org/10.21511/ed.19(1).2020.01
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Article InfoVolume 19 2020, Issue #1, pp. 1-14
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The purpose of this article is to identify the main sources of cyclical fluctuations affecting the five Maghreb countries in a general analysis framework through the impact of the exchange rates and foreign direct investment. Besides, will consider in this study a set of variables taking into account the real monetary and fi ancial dimensions of the economies. Therefore, authors have adopted an approach in terms of the VECM Structural model and analyzed the robustness of the response functions. Indeed, the estimation results showed the existence of a regional dynamics where the respective sensitivity to change of the real exchange rate is the same. In addition, FDI and REER stimulate economic growth of the Maghreb economies in exchange for regime transmutations. In addition, the participation of FDI in the socio-economic development seems to be weak without the implementation of a policy of support and guidance aimed at reducing the catastrophic effects on the economy and reorienting its investments towards sectors with a high added value.
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JEL Classification (Paper profile tab)F15, F42, F43, C32
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References29
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Tables4
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Figures4
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- Figure 1. Trend evolution of FDI per country
- Figure 2. Trend evolution of the REER per country
- Figure 3. Reaction of different shocks to foreign direct investment (FDI)
- Figure 4. Reaction of different shocks on the exchange rate (REER)
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- Table 1. Overall descriptive analysis of basic variables
- Table 2. Unit root tests of variables in logarithm
- Table 3. Decomposition of the Variance of Foreign Direct Investment (FDI)
- Table 4. Variance Decomposition of the Real Effective Exchange Rate (REER)
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The impact of digitalization on the economic convergence of the Russian insurance market
Svetlana Kalayda
doi: http://dx.doi.org/10.21511/ins.12(1).2021.05
Insurance Markets and Companies Volume 12, 2021 Issue #1 pp. 51-63 Views: 503 Downloads: 126 TO CITE АНОТАЦІЯThe most important trends in the modern economy are convergence – the process of convergence of activities of various economic entities and digitalization. Their interaction creates new opportunities for increasing the competitiveness and efficiency of insurance companies. The purpose of the paper is to identify economic convergence processes taking place on the Russian insurance market, which, when using different digitalization products, lead to new business models of partnership. The results of the conducted empirical analysis confirm the existence of economic convergence processes at all levels (intra-segment, intersegment and inter-sectoral) on the Russian insurance market. The proof of this is the significant reduction in the number of insurers in 2021 to 158, compared to 600 insurers in 2011. Over the past three years, the share of sales of insurance products with the participation of banks acting as intermediaries in the sales of insurance services has increased by 1.5 times. Also, along with insurance companies, health care companies have increasingly become involved in such operations. Digitalization products (information technologies (IT); IT and IT platforms; IT, IT platforms and networks) have a huge impact on the forms of organizing joint business with the participation of insurance companies. Some insurance companies do not provide opportunities to issue an insurance policy online or pay an insurance premium, i.e. they use sites for only minor customer interactions. Most often, Russian insurance companies use mobile applications. The impact of various digitalization products at different levels of economic convergence of insurers initiates multivariate business models of joint business.
