Time-Varying Benefits of International Diversification for Finnish Investor: Country-Specific Strategy Concentrating on Emerging Markets

The main objective of this study is to investigate whether the Finnish investors’ country-specific strategy concentrating on emerging markets provides diversification benefits. We also analyze whether the benefits of international diversification has been diminished after periods of high volatility caused by different market crisis. The objective is investigated with three methods: Correlation coefficients, rolling correlations added with OLS trend-lines and Box’s M statistic. All the empirical tests are analyzed and calculated with logarithmic returns of weekly time series data from Friday closing values between January 1995 and December 2007. The number of weekly observations is 678. The data type is total return indices of different countries. Data is collected from DataStream and provided by Datastream Financial. Countries investigated are Finland, Argentina, Brazil, Chile, China, India, Mexico, Poland, Russia, South Africa, South Korea, Thailand and Turkey. The current data is quoted both in U.S. Dollars and local currencies. The empirical results of this thesis show that the correlation coefficients are time-varying across Finland and 12 emerging market countries. Although the correlations have risen from 1995 to 2007, there can be found sub-periods where the correlation has declined from earlier period. The results also indicate that a Finnish investor constructing a portfolio of emerging market countries cannot rely on the correlation coefficients estimated from historical data because of the instability of correlation matrices.

Lyhyesti

Afrikka puheenaiheena ; Terveys ja arjen riskit ; Kansallinen biopankkiverkosto : Psykoterapeuttikoulutus yliopistoihin : Luonnontieteen kokoelmat digitaalisiksi ; Researchgate ; Tieteen päivät Jyväskylässä.

Rural Food System Change in Tanzania during the Post-Ujamaa Era. A Case Study from Western Bagamoyo District

Food systems in Sub-Saharan Africa have been rapidly transforming during the recent decades with diverse outcomes on human development and environment. This study explores the food system change in rural villages in eastern Tanzania where subsistence agriculture has traditionally been the main source of livelihood. The focus is on the salient changes in the spatial dimensions and structural composition of the food system in the context of economic liberalization that has taken place after the end of the socialist ujamaa era in the mid-1980s. In addition, the linkages of the changes are examined in relation to food security, socio-economic situation, livelihoods, and local environment. The approach of the study is geographical, but also involves various multi-disciplinary elements, particularly from development studies. The research methods included thematic and questionnaire interviews, participatory tools, and the analysis of land use/ cover data and official documents. Several earlier studies that were made in the area during the late 1970s and 1980s provided an important reference base. The study shows that subsistence farming has lost its dominant role in food provisioning due to the declining productivity of land, livestock losses, and the increasing shift of labour to non-farm sectors. Also rapid population growth has added to the pressure on land and other natural resources. Despite the increasing need for money for buying marketed foods and other necessities, the nutritional situation shows improvement and severe malnutrition has diminished. However, the long-term sustainability of this transformation raises concerns. Firstly, the food security situation continues to be fragile and prone to shocks such as adverse climatic conditions, crop failures and price hikes. Secondly, the commodification of the food system and livelihoods in general is linked to rapid environmental degradation in the area, particularly the loss of soil fertility and deforestation. The situation calls for efforts that take more determined and holistic approaches towards sustainable development of the rural food system with particular focus on the role and viability of small-scale farming.

Taidokkaita katseita Afrikkaan

Kirjallisuusarvostelu

Toiveikas kuva Afrikasta

Kirjallisuusarvostelu

Aurinkosähköjärjestelmien vieminen Afrikan kehittyviin maihin

Aurinkosähköjärjestelmien käyttäminen sähkön tuotannossa on kasvanut viime vuosina teknologian hinnan laskun ja tiukentuvien ympäristömääräyksien seurauksena. Monet aurinkosähköön keskittyvät yritykset etsivät uusia markkinoita Afrikan kehittyvistä maista. Aurinkosähkön avulla voidaan vastata kehittyvien maiden kasvavaan sähköntarpeeseen ja samalla vähentää maiden hiilidioksidipäästöjä sekä nostaa maiden kehittyvää elintasoa. Tässä työssä tutkitaan aurinkosähköjärjestelmien viemistä kahteen Afrikan kehittyvään maahan Tansaniaan ja Etelä-Afrikkaan. Työn tavoitteena on kohdemaiden liiketoimintaympäristöjen tutkiminen ja markkinapotentiaalin selvittäminen suomalaisen sähkö- ja automaatiotekniikkaan keskittyvän pk-yrityksen näkökulmasta. Työssä selvitetään Tansanian ja Etelä-Afrikan liiketoimintaympäristöjen ja aurinkosähkömarkkinoiden erityispiirteet. Tuloksissa käsitellään myös sopivinta kansainvälistymistapaa tutkitulle pk-yritykselle sekä haasteita, joita yritys kohtaa Afrikan markkinoilla. Kansainvälistymismalleista tutkimuksessa käsitellään Uppsala-mallia ja verkostomallia.

The Impact of European Macroeconomic News Announcements on CIVETS Stock Markets

The purpose of this research is to investigate how CIVETS (Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa) stock markets are integrated with Europe as measured by the impact of euro area (EA) scheduled macroeconomic news announcements, which are related to macroeconomic indicators that are commonly used to indicate the direction of the economy. Macroeconomic announcements used in this study can be divided into four categories; (1) prices, (2) real economy, (3) money supply and (4) business climate and consumer confidence. The data set consists of daily market data from CIVETS and scheduled macroeconomic announcements from the EA for the years 2007-2012. The econometric model used in this research is Exponential Generalized Autoregressive Conditional Heteroscedasticity (EGARCH). Empirical results show diverse impacts of macroeconomic news releases and surprises for different categories of news supporting the perception of heterogeneity among CIVETS. The analyses revealed that in general EA macroeconomic news releases and surprises affect stock market volatility in CIVETS and only in some cases asset pricing. In conclusion, all CIVETS stock markets reacted to the incoming EA macroeconomic news suggesting market integration to some extent. Thus, EA should be considered as a possible risk factor when investing in CIVETS.