The causal relationships in mean and variance between stock returns and foreign institutional investment in India

This paper examines the causalities in mean and variance between stock returns and Foreign Institutional Investment (FII) in India. The analysis in this paper applies the Cross Correlation Function approach from Cheung and Ng (1996), and uses daily data for the timeframe of January 1999 to March 2008 divided into two periods before and after May 2003. Empirical results showed that there are uni-directional causalities in mean and variance from stock returns to FII flows irrelevant of the sample periods, while the reverse causalities in mean and variance are only found in the period beginning with 2003. These results point to FII flows having exerted an impact on the movement of Indian stock prices during the more recent period.

The Confucius institutes and China's soft power

The Confucius Institutes have been established by the Chinese government which operates them in collaboration with foreign universities and educational institutions in order to promote understanding of the Chinese language and culture. The first Confucius Institute opened its doors in Seoul, South Korea in 2004. Within the past seven years, 353 Confucius Institutes and 473 Confucius Classrooms have been established in 104 countries and regions. It is quite unusual for a language school to be able to make progress so rapidly. These developments raise a series of basic questions. First, what are the Confucius Institutes? What are their purpose and function? How have they been able to multiply so quickly? Are Confucius Institutes instruments of China's soft power? This article seeks to answer these questions by analyzing the details behind the establishment of Confucius Institutes, their organizational mechanism, and their activities. This paper concludes that due to insufficiency of cultural content and key concepts which can typify contemporary China, it is hard to see Confucius Institutes as China's soft power.