Alexander Lubis, Constantinos Alexiou and Joseph G. Nellis
This paper examines the impact of using the reserve requirements, combined with foreign exchange (FX) intervention, as key instruments in an inflation-targeting framework.
Abstract
Purpose
This paper examines the impact of using the reserve requirements, combined with foreign exchange (FX) intervention, as key instruments in an inflation-targeting framework.
Design/methodology/approach
In the context of a dynamic stochastic general equilibrium (DSGE) framework and using Bayesian techniques, the authors estimate a model for the Indonesian economy using quarterly data spanning the period 2005Q2–2019Q4.
Findings
The reserve requirement is found to assume a complementary role to that of the interest rate policy and FX intervention when used to stabilise the macroeconomy.
Originality/value
This paper provides a benchmark for other emerging countries that consider adopting the inflation targeting framework and impose an FX intervention as part of their monetary policy.
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Constantinos Alexiou, Joseph Nellis and Nikolaos Papageorgiadis
This paper aims to study the effects of the strength of patent enforcement on economic growth following the signing of the agreement on Trade-Related Aspects of Intellectual…
Abstract
Purpose
This paper aims to study the effects of the strength of patent enforcement on economic growth following the signing of the agreement on Trade-Related Aspects of Intellectual Property Rights and the role of inward foreign direct investment (FDI) flows in mediating and enhancing this relationship.
Design/methodology/approach
Following a generalized method of moments methodology, use is made of a new longitudinal index measuring the strength of enforcement-related aspects of patent systems.
Findings
Stronger levels of patent enforcement have a significant positive effect on the economic growth of both developed and developing countries. Importantly, inward FDI flows have a mediating role in positively boosting this effect for all countries and particularly for developed countries.
Originality/value
This is the first empirical study of the role of the strength of patent enforcement (“law in action”) in stimulating economic growth, as previous empirical studies have focused on the effect of the strength of patent law protection (“law on the books”). The failure in the past to allow for “law in action” was mainly due to the lack of available data that could proxy for the strength of patent enforcement levels in a country. This study utilizes a newly published, longitudinal index that captures the strength of the enforcement-related aspects of patent systems.
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Joseph G. Nellis, Kathleen M. McCaffery and Robert W. Hutchinson
Completion of the European Single Market Programme in Financial Services has, as expected, set in motion a rationalisation process within the European banking industry, as banks…
Abstract
Completion of the European Single Market Programme in Financial Services has, as expected, set in motion a rationalisation process within the European banking industry, as banks respond to increasing competitive pressures that are having a dampening effect on their traditional business margins. Assesses the importance of these developments in the context of the policy options that are open to the European banking community in the new millennium. In particular, given the prospect of an integrated European economy, now commonly referred to as Euroland, the paper addresses, as its central theme, the potential for the development of pan‐European banks that would then be in a position to configure longer‐term globalisation strategies. Evolution in this direction, if it occurs, is important from a European Central Bank policy perspective, since it would raise systemic risk issues if a small number of European licensed banks became “too big to fail”. We conclude, however, that the most prominent strategic response is likely to be based on the European “regionalisation” of banks and markets rather than pan‐Europeanisation.
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David J. Slattery and Joseph G. Nellis
The paper examines how product innovation in the UK banking industry has been affected and is likely to be affected by changes in regulation and in government policy. It considers…
Abstract
Purpose
The paper examines how product innovation in the UK banking industry has been affected and is likely to be affected by changes in regulation and in government policy. It considers the issues faced by banks in pursuing a market‐oriented approach in this environment.
Design/methodology/approach
The rapidly changing regulatory environment in the UK is described and analysed, primarily in the context of the market for mortgage products and medium‐ to long‐term savings products. The paper describes the main events of the last 20 years and analyse their immediate impacts. The paper examines the most recent changes, identify the direction of policy change and consider the implications.
Findings
Empirical evidence suggests that the development of mortgage and pensions products has been closely linked to changes in regulation and government policy. This has resulted in an adverse impact on the brand values and reputations of banks. An analysis of the most recent events identifies two different regulatory approaches which banks now have to manage.
Research limitations/implications
A review of the literature shows that very little detailed research has been carried out into the impact of regulation and government policy on banks and financial services companies.
Practical implications
With this lack of systematic research and analysis, and in the absence of a theoretical framework, it is difficult for banks, regulators and government to make informed decisions.
Originality/value
The paper highlights and analyses an increasingly important issue which has not been addressed in any detail in the literature. The paper puts forward an agenda of research questions and propositions for further research.
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Nikolaos Papageorgiadis, Constantinos Alexiou and Joseph G Nellis
– The purpose of this paper is to explore the instrumental role that copyright and trademark enforcement strength plays in stimulating licensing flows in 21 countries.
Abstract
Purpose
The purpose of this paper is to explore the instrumental role that copyright and trademark enforcement strength plays in stimulating licensing flows in 21 countries.
Design/methodology/approach
In so doing, panel data methodology serves as the empirical platform upon which the investigation between the trademark and copyright enforcement strength levels of 21 countries and the choice between unaffiliated and affiliated licensing of US firms for the period 1998-2011 is conducted.
Findings
The evidence suggests that both copyright and trademark enforcement strength have a highly significant effect on licensing and, more specifically, that stronger levels of enforcement stimulate higher levels of unaffiliated licensing.
Originality/value
The authors use the two longitudinal indices of copyright and trademark enforcement strength which capture the effectiveness and efficiency with which copyrights and trademarks are enforced in 21 countries.
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Joseph Nellis and Terry Lockhart
Against a background of deregulatory change both within the UK andthe broader European context, examines the future prospects for buildingsociety branch networks. Identifies the…
Abstract
Against a background of deregulatory change both within the UK and the broader European context, examines the future prospects for building society branch networks. Identifies the important determinants of change and discusses: technological innovations, the need for greater profitability, the threat from non‐bank retailers and the impact of the single European market. Discusses the implications of these processes and their possible effect on the future of building society branch networks. Focuses on practical strategic and management issues examining the implications of change for the recruitment and retention of branch staff, staff training and development, the status and role of branch managers and the measurement of branch performance.
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Catarina Figueira, Joseph Nellis and Richard Schoenberg
The purpose of this study is to investigate the extent of bank industry consolidation across the European Union, the patterns that have emerged from the mergers and acquisitions…
Abstract
Purpose
The purpose of this study is to investigate the extent of bank industry consolidation across the European Union, the patterns that have emerged from the mergers and acquisitions (M&As) and the regulatory framework that underpins these processes. It aims to identify the key challenges that have to be addressed if M&As are to expand.
Design/methodology/approach
The paper reviews the reasons that have led some financial institutions to merge, both domestically and cross‐border, and the developments that have taken place in the economic, legal and political environment. The paper presents an empirical analysis of bank industry M&As within the EU between 1993‐2004 and identifies possible explanations for the patterns of consolidation.
Findings
The analysis provides evidence that M&As predominantly take place at the national level and that two main strategies have emerged, namely the consolidation of commercial banking and the creation of universal banking groups.
Research limitations/implications
Ten countries joined the EU in 2004 and are excluded from the analysis, due to data limitations.
Practical implications
More cross‐border mergers should be encouraged if EU countries are to continue to integrate their financial markets. Moreover, if universal banking groups do not succeed in exploiting the economies of scope on which they are founded, divestment of non‐core activities may follow, thus providing acquisition opportunities for others, with the resulting more focused organisations wishing to diversify geographically, via cross‐border M&A.
Originality/value
The study suggests that the limited cross‐border M&A activity observed may be due to the existence of non‐legislative barriers, such as internal control issues raised by geographic diversity and, more specifically, the perceived cultural barriers to pan‐European operation.
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This symposium examines issues related to local economic development financing. The symposium introduction paper consists of two sections: (1) a review of the literature related…
Abstract
This symposium examines issues related to local economic development financing. The symposium introduction paper consists of two sections: (1) a review of the literature related to local economic development in general and to the financing economic development in particular; and (2) a summary of major findings from the four symposium papers addressing such issues as rural bank loans, the tax increment financing program, professionalism in economic development, and regional development through tax sharing.
This symposium examines issues related to local economic development financing. The symposium introduction paper consists of two sections: (1) a review of the literature related…
Abstract
This symposium examines issues related to local economic development financing. The symposium introduction paper consists of two sections: (1) a review of the literature related to local economic development in general and to the financing economic development in particular; and (2) a summary of major findings from the four symposium papers addressing such issues as rural bank loans, the tax increment financing program, professionalism in economic development, and regional development through tax sharing.