International Journal of Diplomacy and Economy (11 papers in press)

Regular Issues

• Covid-19 and Financial Markets: A Comparative Analysis of Sustainable and Conventional Indices  
  by Mohit Saini, Mahender Yadav 
  Abstract: The covid-19 pandemic has shocked the whole financial market after the 2008 financial crisis. In the last decade, markets have given various investment avenues to safeguard the invested funds during the time of crisis, sustainable investments are one among them. Hence, this study aims to examine how Covid-19 has impacted sustainable indices as compared to conventional indices. This study adopted the method of event study to analyse the pandemic impacts. The findings of the study indicate that the covid-19 has severe impacts on conventional indices. On the other side, the cumulative average abnormal returns increase post the pandemic lockdown announcement. Returns in the post-event window were highly volatile in the case of conventional indices. Finally, it observed that the sustainable indices were faster to absorb the impact of the covid-19. The study would be helpful for policymakers, investors and portfolio managers.
  Keywords: Sustainable investment; Covid-19; India; Pandemic; Event study; Socially responsible investment; ESG.
  DOI: 10.1504/IJDIPE.2024.10059316
   
  
• Intellectual capital and financial performance nexus in Indian hospitality sector: A panel data analysis  
  by Sushila Soriya, Pushpender Kadian 
  Abstract: The present study empirically examines the effects of intellectual capital (IC) components on business performance indicators of Indian hospitality sector. Further, it explores the role of interactions among IC components to enhanced corporate performance. The study adopted the Modified Value-Added Intellectual Coefficient (MVAIC) model to measure IC and multiple regressions models to analyse the panel data, using a sample of top 50 Indian hotels. The findings demonstrated that the most important and statistically significant variables are human capital efficiency, capital employed efficiency and interaction between human and structural capital efficiencies which positively influence the hotel’s performance, measured through profitability and productivity indicators. The findings also reveal IC as strategic source of enhanced corporate performance. Thus, it may assist the management, stakeholders, policymakers, and government in developing economies like India to enhance and utilize their IC sources effectively and efficiently, particularly in hospitality sector.
  Keywords: Intellectual capital; financial performance; interaction effects; hospitality sector; panel data analysis.
  DOI: 10.1504/IJDIPE.2023.10059850
   
  
• The Harmless Mighty Dragon: China Public Diplomacy for Belt and Road Initiative in Indonesia  
  by Bima Jon Nanda, Inda Mustika Permata 
  Abstract: China's public diplomacy in Indonesia will benefit various Belt and Road Initiative (BRI) projects since the main obstacle to BRI projects in Indonesia is the negative image of China as communist, aggressive, and anti-Islam by the Indonesian public. This article explores various Chinese government Public Diplomacy in Indonesia. They explained using Cull Public Diplomacy Taxonomy, which is listening, advocacy, cultural and exchange diplomacy, and broadcasting. This article argues that the Chinese government uses ASEAN-China Think Tanks (NACT) as a listening approach to their public diplomacy. At the same time, it could also be utilized as an advocacy approach to their public diplomacy. China uses its Confucius Institute for cultural diplomacy. China approached influential Muslim organizations' representatives in Indonesia and invited them to visit China to eliminate the anti-Islamic image from China as their exchange diplomacy. China also cooperates with Indonesian news media to combat the anti-Islam image of China.
  Keywords: China; Indonesia; Belt and Road Initiative; Public Diplomacy; Negative Image.
  DOI: 10.1504/IJDIPE.2024.10061018
   
  
• Enhancing the competitiveness of Ethiopian cut flower exports using strategic diplomacy  
  by Alemayehu Derege 
  Abstract: This study sought to identify the main impacts of diplomacy on Ethiopia's cut flower exports. The researcher link export incentives with cut flower exports, and finally identify challenges for the cut flower export subsector. Based on their analysis, researcher identified low social acceptance of investment in flowers, high competition from other partner countries, and low compensation for land and property that underperforms the sector. The diplomatic relation during PP makes the export of cut flowers fall by 28.4% relative to the EPRDF regime. Based on the results, the study suggests increasing export incentives for the sector. Besides, the government should reconsider with whom it should further strengthen its diplomatic ties.
  Keywords: Diplomacy; Cut Flower; Export; Incentives; GDP; Trade Competitiveness.
  DOI: 10.1504/IJDIPE.2024.10061019
   
  
• The role of regional organizations in economic diplomacy and recognition of new states: An examination of the role played by regional organizations in recognition of new states and their subsequent economic relations with the international community  
  by Ibrahim Suleiman, Patrick Maluki, Martin Ouma 
  Abstract: It is a complex and intensely politicized procedure to recognize new states and admit them to the global community By providing a forum for discussion and negotiation, regional groups, according to research, aid in this process Regional organizations facilitate economic ties between freshly established states and the international community in this way as well This study aims to examine how regional groups contribute to economic diplomacy and the acceptance of new states With an emphasis on economic relations, the study will look into the various tools and procedures regional organizations employ to aid in the acceptance of new states and their following integration into the global community It will start by providing an overview of the various types of regional organizations and examine the approaches they use to recognize new states, including establishing diplomatic relations, membership in the organizations, and support for statehood aspirations.
  Keywords: Keywords: recognition of new states; economic diplomacy; the international community; global governance.
  DOI: 10.1504/IJDIPE.2024.10061020
   
  
• Igbo Cultural Diplomacy and Peace Building in Pre-colonial Nigeria  
  by Francis Odeke 
  Abstract: Diplomacy creates mutual and healthy relations among people of different backgrounds pursuing varied socio-political and economic interests. In pre-colonial Nigeria, Igbo people pursued diplomacy by cultural means which earned them cordial and profitable socio- political and economic advantages in trade and other engagements. This study uses the primary and secondary sources of data to examine how the Igbo succeeded in their socio-political and economic drives in pre-colonial Nigeria, building bridges of peace with all the communities they related with using Cultural Diplomacy. The study is of the opinion that the Igbo approach in diplomacy could help the elusive global quest for peace and security if carefully imported into the business of the international community.
  Keywords: Nigeria; Igbo; Global peace and security; Diplomacy; Culture; Peaceful co- existence; Economic interests.
  DOI: 10.1504/IJDIPE.2024.10061021
   
  
• Does the problem of Nonperforming loans differ in a religious and a secular Economy? An investigation of the nexus between financial sector development, institutional variables and Nonperforming Loans  
  by Aamir Syed 
  Abstract: The influence of financial inclusion and financial sector advancement on nonperforming loans has been extensively explored. However, the literature has ignored the role of religiosity and secularism in understanding the above relationship. The current study assist to fill this void by exploring the above relationship using regression, interaction analysis, correlation, and generalized method of moment propounded by Hansen, 1982 covering the period from 2000-2020. The findings reveal that religious perception negatively influences financial inclusion and financial sector development. In addition, through interaction analysis, it creates a positive impact on the nonperforming loans of the religious country. Contrary, secularism assists in reducing nonperforming loans by creating a positive influence on the financial sector development and financial inclusion. Moreover, the study substantiates a negative relationship between government stability and religious perception which also contribute to the nonperforming loan of a religious country, contrary to a positive relationship between government stability and secularism. The present study offers several useful recommendations.
  Keywords: Nonperforming loans; Religiosity; Secularism; Financial sector development; Financial inclusion.
  DOI: 10.1504/IJDIPE.2024.10061022
   
  
• The Russia-Ukraine War and Stock Market Volatility: Lessons from Selected South Asian Countries  
  by Nishat Rumaly, Md Mehedi Hasan, Uttam Golder, Barnali Roy 
  Abstract: The ongoing conflict of Russia-Ukraine has severely affected the stock market worldwide. Although several studies in developed countries have explored the footprint of this dispute on the equity market, the impression of this war in the South Asian context is still underexplored. Using data from August 2014 to November 2022, we inquire about the aftermath of the Russia-Ukraine fight on equity market volatility and its return in five selected South Asian countries: Bangladesh, India, Pakistan, Sri Lanka, and Nepal. Applying Generalized Auto-Regressive Conditional Heteroskedasticity-in-Mean (GARCH-M) model, we find that the war increases the volatility of stock markets. Besides, we also identify that the war negatively impacts the equity return. Our study recommends that the war be stopped immediately and that rigorous regulatory adjustments be implemented to mitigate the financial damages resulting from Russia's current evasion of Ukraine.
  Keywords: Russia-Ukraine War; DSEX; Nifty 500; KSE 100; CSE All-Share; NEPSE; GARCH-M.
  DOI: 10.1504/IJDIPE.2024.10063911
   
  
• Commercial Diplomacy: Conceptual analysis and factors shaping its empirical impact on trade and investments.  
  by Panagiotis Tsitsoglou, Grigoris Zarotiadis 
  Abstract: The activities and relevant means/instruments of conducting Commercial Diplomacy (CD), recognized by relevant literature need further clarification and conceptualization. Scholars usually point out the agents (state/non-state actors) or the goals of the concept (exports/investments, business promotion), without stressing the instruments/means available to relevant actors, while conducting CD. This paper contributes to a better understanding of CD, since we propose - after a thorough theoretical and empirical literature review - two conceptual dimensions of activities and relevant instruments of CD - cognitive and political - which we also take into account in our proposed definition of the concept. Thus, we introduce a new holistic framework of CD, where next to the actors and the goals, the concept is additionally characterized by the activities and relevant means, both integrated into the aforementioned categories/dimensions, defined respectively. Last but not least, we point out specific qualitative factors that affect the impact of CD on international trade/investment flows.
  Keywords: Commercial diplomacy; definition; dimensions of activities; exports; investments; embassies; consulates; trade missions; export/investment promotion agencies; business support.
  DOI: 10.1504/IJDIPE.2024.10063912
   
  
• Company Specific Antecedents to Stock Returns: A Statistical Investigation with Special Reference of the NIFTY 50  
  by Sweta Goel, Nikhil Yadav, Nassir Ul Wani, Aamir Syed 
  Abstract: This study examines the relationship between stock returns and company-specific factors. Specifically, the study investigates the effect of Growth, Earnings, Dividends, Financial Ratios, Risk, and Volatility on the stock returns of companies listed on the Indian Stock Exchange. The study used an ex post facto research design. The population comprised all Companies listed on NIFTY 50, National Stock Exchange, India. Multiple regression analysis is used to analyze the data and test the hypothesis that financial indicators significantly impact stock returns. Findings reveal that several independent variables, such as Earnings per Share, Dividend Payout Ratio, and Price-to-Book Ratio had a statistically significant relationship with stock returns. This study provides valuable insights for investors and analysts regarding the stock selection process. The findings suggest that combining company-specific factors can help predict stock returns. Few studies have addressed the interplay of company-specific factors and stock returns. This paper provides unique insights into this relationship in a developing economy using comprehensive financial metrics and advanced statistical techniques.
  Keywords: Company-Specific Factors; Stock Returns; Dividends; Financial Ratios.
  DOI: 10.1504/IJDIPE.2024.10064766
   
  
• Solidifying the Concept of Political Will to Promote Decoloniality and Migration Diplomacy in South Africa  
  by Joyce Toendepi, Eric B. Niyitunga, James Asani 
  Abstract: The lack of political will has impeded the decolonisation of migration diplomacy in South Africa. Political will is a critical pillar in applying migration laws and the practice of migration diplomacy in Africa. Unfortunately, African scholars of decoloniality have not yet explored the role and effects of political will in promoting decoloniality and migration diplomacy in South Africa. This paper adopts a qualitative research methodology with an explanatory approach to achieve its objectives. Thematic content analysis was used to identify and analyse data patterns systematically and objectively and assemble a shared interpretation. The findings show that the lack of political will has affected the fate of decoloniality, migration laws and diplomacy in South Africa. The paper recommends that African leaders understand the effects and role of political will in promoting decoloniality and addressing the failures of migration diplomacy in South Africa.
  Keywords: Migration; migration laws; migration diplomacy; political will; coloniality; decoloniality; South Africa.
  DOI: 10.1504/IJDIPE.2024.10065241