International Journal of Trade and Global Markets (8 papers in press)

Regular Issues

• The Impact of Investment on Environmental Quality: Evidence from Indonesian Provinces  
  by Irwan Trinugroho, Aldy Fariz Achsanta, Putra Pamungkas, Sajidan Sajidan 
  Abstract: The impact of foreign direct investment (FDI) on environmental degradation has been a main issue in the investment-environment nexus. FDI channeled to non-environmentally friendly industries most likely accelerate environmental degradation. We focus on investigating the effect of FDI on environmental degradation by examining FDI in Indonesia across provinces. To measure the severity of air pollution in each province, we use two proxies of environmental degradation: the Environmental Quality Index (EQI) and Air Quality Index (AQI). A panel data technique is applied to a panel of 34 provinces, resulting in 164 province-year observations employed in the empirical estimation. We also disentangle investment as the main explanatory variable, not only foreign but also domestic investment. Our results indicate that both domestic investment and FDI are positively associated with environmental degradation, implying that most of these investments are channeled into the sector with high negative externalities, resulting in a decline in environmental quality.
  Keywords: foreign direct investment; domestic investment; environmental quality index; air quality index; Indonesia.
  DOI: 10.1504/IJTGM.2023.10057716
   
  
• Digital Opportunity Assessment in International Markets  
  by Ilke Kardes, Joanne M. Tran, Manisha Mathur, Leisa R. Flynn, Michael T. Dugan 
  Abstract: This study examines external environmental factors (political/legal, socio-economic, and technological) most strongly associated with e-commerce sales in emerging vs. developed markets. This study uses longitudinal archival data and conducts a partial least squares-structural equation modeling to investigate the impact of environmental factors. The results indicate that technological factors, among others, are the most associated with e-commerce sales in both emerging and developed markets. There is no significant difference between the two country groups regarding the association of political/legal factors with e-commerce sales. Socio-economic factors are more highly associated with e-commerce sales in emerging markets than in developed countries. This study extends the previous literature by combining market opportunity analysis with the PEST framework to assess digital opportunities in international markets. Furthermore, the study uses partial least squares-structural equation modeling to compare developed countries with emerging markets.
  Keywords: E-commerce; emerging markets; developed markets; PEST analysis.
  DOI: 10.1504/IJTGM.2023.10059836
   
  
• THE IMPACT OF MICROFINANCE IN ECONOMIC GROWTH IN ALBANIA: AN EMPIRICAL APPROACH BASED ON ARDL MODEL  
  by Klodian Muço, Emiljan Karma, Mauro Gianfranco Bisceglia 
  Abstract: Microfinance has grown rapidly in recent years in Albania with a dual mission: financial and social. The financial mission is to provide financial instruments and services to low-income individuals who would otherwise be excluded from the traditional banking system. The social mission, on the other hand, is to guarantee credit for investments and other activities to improve the social well-being of the people. Micro-credit could greatly improve the socio-economic well-being of the recipients. The purpose of this study, starting from these elements, is to examine the effect of the microfinance has on economic and social development in a developing country such as Albania. The observation focuses on the economic transition period (2004-2021) using annual data. The analysis will make use of the ARDL model, considering the aspects of cointegration and econometric techniques to control the robustness of the results. The findings of this study indicate that microcredit portfolio volume, does not affect the real wealth of individuals in Albania. At the same time, from a social perspective, the microcredit has a positive and significant impact on employment in Albania.
  Keywords: Microcredit; Economic Growth; Employment; Microfinance in Albania.
  DOI: 10.1504/IJTGM.2024.10065222
   
  
• Global competitiveness, comparative advantage, and intensity of Indian Floriculture Trade: Scenario after National Horticulture Mission  
  by Diksha Sinha, Roopali Sharma 
  Abstract: Following the trade reforms and the launch of the National Horticulture Mission in 2005-06, floriculture has emerged as a crucial commercial activity within Indian agriculture. This paper delves into an analysis that seeks to identify and assess India's comparative advantage and competitiveness of floriculture products in the global market using the Balassa Revealed Comparative Advantage (RCA) index and the Vollrath indices respectively. Additionally, the Trade Intensity Index (TII) is employed to determine the extent of bilateral trade between India and 25 significant floriculture export destinations spanning the years from 2005 to 2022. The result reveals that India does not have a comparative advantage in the export of overall floriculture products under the HS06 category of products to the world market. The study highlights the vast scope of floriculture trade development worldwide and concludes with probable suggestive strategies to improve export performance and overcome the challenges of the Indian floriculture trade.
  Keywords: International trade; Floriculture; Comparative advantage; Trade intensity; National Horticulture Mission.
  DOI: 10.1504/IJTGM.2024.10065223
   
  
• PERFORMANCE EVALUATION OF COLLEGE ENDOWMENT PORTFOLIOS IN DEVELOPED ECONOMIES OF NORTH AMERICA  
  by Musa Essayyad, Mostafa Malki, Omar Ahmed Altayti, Banamber Mishra 
  Abstract: This research paper investigates performance evaluation of endowment portfolios in developed economies of North America. NACUBO data on endowment characteristics of twenty college endowments in the top US and Canadian colleges are used, and a modified version of the organic benchmarks suggested by Tiu (2017) was employed to test the hypotheses contained in this study. The research exercise is to examine whether the endowments keep adjusting to align with the university goals, namely, enhancing teaching, research, and community engagement. The panel regression model provides coefficient estimates of endowments, intertemporal endowment, intertemporal enrollment, and size of the endowments. This research outcomes substantiate the hypothesis that endowment funds should concentrate on increasing their endowments size and enhance enrollment, which would help institutions keep adjusting to align with the university goals of enhancing teaching, research and community engagement.
  Keywords: Keywords: University endowment funds; portfolio performance; capital asset pricing models; organic benchmarks; panel regression. JEL: G11; G12; G23; G24; I22; L31.
  DOI: 10.1504/IJTGM.2024.10065224
   
  
• Financial naivety, excessive gaming, and compulsive buying influence cryptocurrency continuance intention: The mediating role of overconfidence and risk tolerance  
  by Elisa Tjondro, Retnaningtyas Widuri, Josua Tarigan, Saarce Elsye Hatane 
  Abstract: This study seeks to investigate the investment persistence among individuals who have maintained cryptocurrency holdings in the previous year. Financial naivety, online compulsive buying, and excessive gaming behaviours influence continuance intention, either through overconfidence or risk tolerance. The sample comprised 1,097 participants between the ages of 20 and 50, selected from the five provinces of Indonesia's most significant internet user bases. Structural Equation Modeling is utilised in this study. This study demonstrates that excessive gaming behaviour and financial naivety are associated with continuance intention, either directly or indirectly, via overconfidence or risk tolerance. Investors should be cautious regarding their financial naivety and excessive gaming behaviour, as these elements might increase the tendency to be overly optimistic and the willingness to take on higher levels of risk. The findings are consistent with the Dunning-Kruger effect, which posits that financial naivety and excessive gaming may introduce future financial risks for cryptocurrency owners.
  Keywords: Cryptocurrency continuance intention; financial naivety; compulsive buying; excessive gaming; overconfidence; risk tolerance; Dunning-Kruger Effect.
  DOI: 10.1504/IJTGM.2024.10065756
   
  
• HOUSEHOLD INVESTOR’S ATTITUDE TOWARDS FINANCIAL INVESTMENT IN CAPITAL MARKET DURING COVID-19 PANDEMIC  
  by Anshita Bihari, Manoranjan Dash 
  Abstract: A household investor’s finance is subject to change at any given moment, switching between surpluses and shortfall. As the return on investment is a dilemma during the COVID-19 pandemic, investors strategically design their investment strategy to face the challenges occurring in the capital market, pandemic and the perception of the financial market influences investor’s behavior on investment decision. The research focuses on evaluating the investment decision-making by investors in COVID-19 pandemic and examines the relationship between financial risk, financial trust, and financial knowledge on investment decision. The findings indicate that the risk, trust, and knowledge of investors have a significant impact on the investment decision and gives importance to the investor’s attitudes specifically during the pandemic period where prior studies have not given the importance to the attitude of the investors. The practical implications will provide a roadmap in linking between investor cognitive psychology and investment decision in pandemic situation.
  Keywords: Investment strategy; Financial Risk; Financial Trust ; Financial Knowledge ,Investment Decision.
  DOI: 10.1504/IJTGM.2024.10067487
   
  
• Exploring the dynamic connectedness and portfolio diversification strategies between energy and non-energy commodities in India  
  by Ishwar Sharma, Meera Bamba, Bhawana Verma, Bharti Verma 
  Abstract: The study uses the novel connectedness approach to investigate the connectedness between India’s energy and non-energy commodities. Additionally, bivariate and multivariate portfolio techniques are employed to determine the optimum weightage for a portfolio. Based on an analysis of closing price data from the Multi Commodity Exchange of India Limited, spanning from January 31, 2015, to July 15, 2024, the study revealed a low spillover between the energy and non-energy markets. Energy commodities act as net transmitters, while non-energy commodities act as net receivers. Furthermore, the pairwise connectedness of the energy market with non-energy markets demonstrates diversification potential. A portfolio based on the weightage derived from bivariate and multivariate portfolio techniques can effectively reduce volatility. The study provides valuable insights for portfolio managers, investors, and policymakers.
  Keywords: connectedness; diversification; energy; India; portfolio weight.
  DOI: 10.1504/IJTGM.2024.10067488