ARE THE BENEFITS FROM GEOGRAPHICAL DIVERSIFICATION DECLINING WITHIN EUROPE?

2006 ◽  
Keyword(s):  
Geographical Diversification

Relationship between Cross-Border Mergers and Acquisitions and International Trade: The Case of Russian Pharmaceutical Industry

2020 ◽  
pp. 81-94
Author(s):  
Alexandra V. Chugunova ◽  
Olga A. Klochko
Keyword(s):  
International Trade ◽  
Mergers And Acquisitions ◽  
Volume Growth ◽  
Pharmaceutical Products ◽  
Pharmaceutical Companies ◽  
Cross Border ◽  
Export Volume ◽  
Relationship Of ◽  
Geographical Diversification ◽  
The Relationship

This research studies the relationship of cross-border mergers and acquisitions to international trade through the lens of Russian pharmaceutical market. To this aim, the study analyses the woks of foreign economists dedicated to evaluating the link between foreign direct investment and international trade, and the influence of mergers and acquisitions on countries’ export and import flows. The research also presents a correlation analysis between the volume of Russian pharmaceutical exports and imports and cross-border deals performed by foreign pharmaceutical companies in Russia. We characterize these deals and conduct a comparative analysis of the regional structure of Russian pharmaceutical exports and imports as well as of the countries of origin of buyers in cross-border mergers and acquisitions. The results of the analysis indicate a positive relationship between cross-border mergers and acquisitions and Russian pharmaceutical exports, which is reflected in the export volume growth and its geographical diversification. However, it is outlined that particular problems of the industry hinder the amelioration of Russian positions in international exports. Similarly, the relationship between cross-border deals and Russian imports is positive: the major pharmaceutical products supply flow occurs from the countries of origin of buyers in cross-border mergers and acquisitions conducted in the Russian pharmaceutical sector.

scholarly journals Does the target market affect bank performance? Evidence from the geographic diversification of city commercial banks in China

2021 ◽  
Vol 15 (1) ◽  
Author(s):  
Xiaonan Li ◽  
Chang Song
Keyword(s):  
Commercial Banks ◽  
Banking Sector ◽  
Capital Adequacy ◽  
Bank Performance ◽  
Chinese Government ◽  
Target Market ◽  
Geographic Diversification ◽  
Cross Sectional ◽  
The Impact ◽  
Geographical Diversification

AbstractAfter the opening up of the banking sector to domestic and foreign capitals which is approved by the Chinese government, the China Banking Regulatory Commission (CBRC) has permitted city commercial banks to diversify geographically. Since this deregulation in 2006, city commercial banks began to geographically diversify to occupy the market and acquire more financial resources. To examine the causal relationship between geographical diversification and bank performance, we construct an exogenous geographical diversification instrument using the gravity-deregulation model and a policy shock. We find that bank geographical diversification negatively affects bank performance. Moreover, we conduct some mechanism tests in the Chinese context. We find that the target market with several large- and medium-sized banks and a high level of local protectionism in the target market decreases the performance of city commercial banks. Finally, cross-sectional analyses show that the impact of geographical diversification on banks’ performance is more notable among city commercial banks that are younger, and have a lower capital adequacy ratio and a higher non-performing loan ratio.

Effects of geographical and technological diversification on the development of spatially disaggregated wind and solar power market values  

2021 ◽  
Author(s):  
Manuel Eising ◽  
Hannes Hobbie ◽  
Dominik Möst
Keyword(s):  
Wind Energy ◽  
Solar Power ◽  
Negative Relationship ◽  
Market Value ◽  
Power Market ◽  
Offshore Wind ◽  
Onshore Wind ◽  
Market Values ◽  
Technological Diversification ◽  
Geographical Diversification

<p><strong>Keywords</strong>: Market value, Technological diversification, Geographical diversification, Spatial value factor distribution</p><p>Ambitious climate and energy targets require environmentally compatible energy generation with a high utilisation of renewable energy sources. However, due to the intermittent appearance of wind and PV feed-in, variable renewable energy (VRE) reveals significantly lower market values than conventional dispatchable power (Joskow, 2011). Additionally, with higher VRE shares a significant market value drop of wind and solar power has been observed in recent years as a result of the merit order effect (Hirth, 2013). Moreover, results by Engelhorn and Müsgens (2018) and Becker and Thrän (2018) have indicated regional disparities in empirical market values for Germany.  This poses interest on what exactly drives and how to quantify the development and spatial distribution of VRE market values.</p><p>Against this background, an electricity market model is applied to trace the development of spatial market values based on model-endogenous electricity prices. A special feature of the model is the inclusion of highly regionally disaggregated weather data which allows to investigate effects of different geographical and technological VRE diversification strategies in Germany until 2035 (Eising et al., 2020). The results of this research are threefold:</p><ul><li>Technological diversity: results show a significant decrease in PV and onshore wind value factors as VRE shares increase. Replacing onshore wind energy by offshore wind energy reduces the volatility and counteracts the value drop of onshore wind, offshore wind and PV.</li> <li>Geographical diversity: results indicate that geographical diversification does not necessarily mitigate decreasing VRE value factors. Under specific circumstances, a higher concentration at sites with lower full-load hours and corresponding higher feed-in volatility potentially mitigates positive effects from more spatially distributed generation.</li> <li>Spatial distribution of value factors: for all mitigation strategies and for wind and PV the spatial value factor distribution shows future increases in regional disparities. However, regional value factor disparities are most distinct in case of onshore wind. The analysis reveals two significant drivers: first, a negative relationship between the regional wind capacity density and their regional value factors can be observed. Second, results indicate a negative relationship between site-specific wind feed-in volatility and the value factor.</li> </ul><p> Summarising, the analysis highlights the importance of considering spatial market values in efficiently designing future electricity markets.  </p><p> </p><p><strong>References</strong></p><p>Becker, R., Thrän, D., 2018. Optimal Siting of Wind Farms in Wind Energy Dominated Power Systems. Energies 11, 978. https://doi.org/10.3390/en11040978</p><p>Eising, M., Hobbie, H., Möst, D., 2020. Future wind and solar power market values in Germany — Evidence of spatial and technological dependencies? Energy Econ. 86, 104638. https://doi.org/10.1016/j.eneco.2019.104638</p><p>Engelhorn, T., Müsgens, F., 2018. How to estimate wind-turbine infeed with incomplete stock data: A general framework with an application to turbine-specific market values in Germany. Energy Econ. 72, 542–557. https://doi.org/10.1016/j.eneco.2018.04.022</p><p>Hirth, L., 2013. The market value of variable renewables: The effect of solar wind power variability on their relative price. Energy Econ. 38, 218–236.</p><p>Joskow, P.L., 2011. Comparing the Costs of Intermittent and Dispatchable Electricity Generating Technologies. Am. Econ. Rev. 101, 238–241.</p>

scholarly journals Dampening Variations in Wind Power Generation Through Geographical Diversification

2019 ◽  
Vol 214 ◽  
pp. 012038
Author(s):  
D Kryzia ◽  
P Olczak ◽  
J Wrona ◽  
M Kopacz ◽  
K Kryzia ◽  
...  
Keyword(s):  
Power Generation ◽  
Wind Power ◽  
Wind Power Generation ◽  
Geographical Diversification

scholarly journals Contagion of the Subprime Financial Crisis on Frontier Stock Markets: A Copula Analysis

Economies ◽  
2019 ◽  
Vol 7 (1) ◽  
pp. 15 ◽  
Author(s):  
Wahbeeah Mohti ◽  
Andreia Dionísio ◽  
Paulo Ferreira ◽  
Isabel Vieira
Keyword(s):  
Financial Crisis ◽  
Stock Markets ◽  
Large Set ◽  
Subprime Crisis ◽  
Relative Level ◽  
Copula Models ◽  
Before And After ◽  
The Usa ◽  
International Investors ◽  
Geographical Diversification

This study assesses contagion from the USA subprime financial crisis on a large set of frontier stock markets. Copula models were used to investigate the structure of dependence between frontier markets and the USA, before and after the occurrence of the crisis. Statistically significant evidence of contagion could only be found in the European region, with the markets of Croatia and Romania being affected. The remaining European markets in our sample and the others, located in America, Middle East, Africa, and Asia, appear to have been isolated from the subprime crisis impact. These results are useful for international investors interested in enlarging the geographical diversification of their portfolios, but also for the considered countries’ policymakers who should attempt to improve the attractiveness of stock markets for domestic and foreign investors while simultaneously attempting to maintain their relative level of insulation against future foreign crises.

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