Prague Economic Papers, 2023 (vol. 32), issue 5
Financial Development and Intra-trade Relationships: Evidence from Panel Analysis of Regional Comprehensive Economic Partnership Countries
Chen Yan, Leilei Zhang
Prague Economic Papers 2023, 32(5):473-487 | DOI: 10.18267/j.pep.841 
This study accounts for the nexus between financial development and intra-trade relationships using nine Regional Comprehensive Economic Partnership (RCEP) countries with the extraction of data from secondary sources spanning between 1990 and 2021. The following are the con- clusions drawn from the study: exchange rate, interest rate and inflation rate, which are criti- cal macroeconomic variables, represent unfavourable factors that suppress the intra-trade rela- tionships within the RCEP region. In light of the above, this study recommends that any time the policymakers in RCEP countries desire better intra-trade relationships within RCEP countries,...
European Housing Prices Through the Lens of Trends
Ales Melecky, Daniel Paksi
Prague Economic Papers 2023, 32(5):488-519 | DOI: 10.18267/j.pep.840
We study convergence and club formation of housing prices in European countries using several measures of housing prices. We employ correlations, innovative trend and gap approaches, and cointegration analysis to study the long-term development of housing prices and their reactions to crises. We find that housing prices in European countries do not converge and their development since the creation of the monetary union has differed. The most prominent examples are the differences between Southern European countries heavily affected by the Global Financial Crisis and the rest of the countries. Our analysis reveals several country clubs with similar...
Symmetric and Asymmetric Dynamics of Output Gap and Inflation Relation for Turkish Economy
Burhan Biçer, Almila Burgac Cil
Prague Economic Papers 2023, 32(5):520-549 | DOI: 10.18267/j.pep.842
This paper uses symmetric and asymmetric testing procedures to examine the issue of the relationship between the output gap and inflation for the Turkish economy using data from 2002:01 to 2021:09. First, it analyses the cointegration by applying different cointegration tests taking into account structural breaks and asymmetric behaviour to reveal whether the relation varies between sub-periods. Afterwards, it examines the asymmetric causality between different shocks. Our empirical results indicate that there is a long-run relationship between series in the existence of two structural breaks and asymmetry. The results also show asymmetric causality...
Income Diversification, Market Structure and Bank Stability: A Cross-country Analysis
Son Tran, Dat Nguyen, Khuong Nguyen, Canh Nguyen, Liem Nguyen
Prague Economic Papers 2023, 32(5):550-568 | DOI: 10.18267/j.pep.843
Using a macro-level dataset covering 173 countries from 2000 to 2020, this study is the first attempt to examine how income diversification and market concentration are related to bank stability. Firstly, we document that bank stability is positively related to revenue diversification, suggesting that banks are more stable when they are more engaged in non-traditional activities. Secondly, market concentration is positively associated with bank stability, in line with the concentration-stability hypothesis that banks in a highly concentrated banking system are more likely to be more stable. Thirdly, we show that market concentration modifies the link...
Education and Employment: Evidence from Selected OECD Countries
Müzeyyen Merve Şerifoğlu
Prague Economic Papers 2023, 32(5):569-588 | DOI: 10.18267/j.pep.839
The objective of the paper is to investigate the relationship between education and employment level in 27 member countries of OECD over the period 1998-2019. To achieve this, the paper first analyses the effect of the number of graduates from upper secondary, post-secondary and tertiary education programmes. Additionally, the paper constructs an education index which covers graduates from upper secondary, post-secondary and tertiary education programmes. After calculating distribution of graduates using the standard deviation method, the paper employs two-step system GMM developed by Arellano and Bover (1995) and Blundell and Bond (1998). The findings...