Tax Motivated Takings

Tax motivated takings are takings by a local government aimed purely at increasing its tax base. Such an action was justified by the Supreme Court's ruling in Kelo v. New London, which allowed the use of eminent domain for a private redevelopment project on the grounds that the project promised spillover public benefits in the form of jobs and taxes. This paper argues that tax motivated takings can lead to inefficient transfers of land for the simple reason that assessed values understate owners' true values. We therefore propose a reassessment scheme that greatly reduces the risk of this sort of inefficiency.

Factors that influence the decision to produce exportables in the Chilean agricultural sector

This study analyzes there lative importance of the factors that influence the decision to produce for foreign markets in the Chilean agricultural sector. Using data obtained from personal interviews with 368 farmers, the market/production decision was estimated using a multinomial logit model. Three market/production alternatives were analyzed: production aimed for the external market, production for the internal market but with expectations of being exported, and production targeted only for the internal market. Marginal effects, odds ratios and predicted probabilities were used to identify the relevance of each variable. The results showed that a producer that is male, with a higher educational level, that does not own the land, but rents it, whose farm has irrigation and is located in an area that has a high concentration of exporting producers, will have a high probability of producing exportables. However, the factor that has the highest impact on producing for the external market is the geographic concentration of exporting producers, that is, an export spillover effect. Indeed, when the concentration change from 0 to its maximum (0.26), the odds of producing exportables rather than producing traditional products increases by a factor of 70 (against a factor of 10 in the case of irrigation).

Contribution of woody habitat islands to the conservation of birds and their potential ecosystem services in an extensive Colombian rangeland

The conservation of birds and their habitats is essential to maintain well-functioning ecosystems including human-dominated habitats. In simplified or homogenized landscapes, patches of natural and semi-natural habitat are essential for the survival of plant and animal populations. We compared species composition and diversity of trees and birds between gallery forests, tree islands and hedges in a Colombian savanna landscape to assess how fragmented woody plant communities affect forest bird communities and how differences in habitat characteristics influenced bird species traits and their potential ecosystem function. Bird and tree diversity was higher in forests than in tree islands and hedges. Soil depth influenced woody species distribution, and canopy cover and tree height determined bird species distribution, resulting in plant and bird communities that mainly differed between forest and non-forest habitat. Bird and tree species and traits widely co-varied. Bird species in tree islands and hedges were on average smaller, less specialized to habitat and more tolerant to disturbance than in forest, but dietary differences did not emerge. Despite being less complex and diverse than forests, hedges and tree islands significantly contribute to the conservation of forest biodiversity in the savanna matrix. Forest fragments remain essential for the conservation of forest specialists, but hedges and tree islands facilitate spillover of more tolerant forest birds and their ecological functions such as seed dispersal from forest to the savanna matrix.

Lower Cretaceous radiolarians from the northwestern Australian margin

During Leg 123, abundant and well-preserved Neocomian radiolarians were recovered at Site 765 (Argo Abyssal Plain) and Site 766 (lower Exmouth Plateau). The assemblages are characterized by a scarcity or absence of Tethyan taxa. The Berriasian-early Aptian radiolarian record recovered at Site 765 is unique in its density of well-preserved samples and in its faunal contents. Remarkable contrasts exist between radiolarian assemblages extracted from claystones of Site 765 and reexamined DSDP Site 261, and faunas recovered from radiolarian sand layers of Site 765. Clay faunas are unusual in their low diversity of apparently ecologically tolerant species, whereas sand faunas are dominated by non-Tethyan species that have never been reported before. Comparisons with Sites 766 and 261, as well as sedimentological observations, lead to the conclusion that this faunal contrast results from a difference in provenance, rather than from hydraulic sorting. Biostratigraphic dating proved difficult principally because of the paucity or even absence of (Tethyan) species used in published zonations. In addition, published zonations are contradictory and do not reflect total ranges of species. Radiolarian assemblages recovered from claystones at Sites 765 and 261 in the Argo Basin reflect restricted oceanic conditions for the latest Jurassic to Barremian time period. Neither the sedimentary facies nor the faunal associations bear any resemblance to sediment and radiolarian facies observed in typical Tethyan sequences. I conclude that the Argo Basin was paleoceanographically separated from Tethys during the Late Jurassic and part of the Early Cretaceous by its position at a higher paleolatitude and by enclosing landmasses, i.e., northeastern India and the Shillong Block, which were adjacent to the northwestern Australian margin before the opening. Assemblages recovered from radiolarian sand layers are dominated by non-Tethyan species that are interpreted as circumantarctic. Their sudden appearance in the late Berriasian/early Valanginian pre-dates the oceanization of the Indo-Australian break-up (Ml 1, late Valanginian) by about 5 m.y., but coincides with a sharp increase in margin-derived pelagic turbidites. The Indo-Australian rift zone and its adjacent margins probably were submerged deeply enough to allow an intermittent "spillover" of circumantarctic cold water into the Argo Basin, creating increased bottom current activity. Circumantarctic cold-water radiolarians transported into the Argo Basin upwelled along the margin and died en masse. Concomitant winnowing by bottom currents led to their accumulation in distinct radiolarite layers. High rates of faunal change and the sharp increase of bottom current activity are thought to be synchronous with the two pronounced late Berriasian-early Valanginian lowstands in sea level. Hypothetically, both phenomena might have been caused by a glaciation on the Antarctic-Australian continent, which was for the first time isolated from the rest of Gondwana by oceanic seaways as a result of Jurassic and Early Cretaceous seafloor spreading. The absence of typical Tethyan radiolarian species during the late Valanginian to late Hauterivian period is interpreted as reflecting a time of strong influx of circumantarctic cold water following oceanization (Mil) and rapid spreading between southeast India and western Australia. The reappearance and gradual increase in abundance and diversity of Tethyan forms along with the still dominant circumantarctic species are thought to result from overall more equitable climatic conditions during the Barremian and early Aptian and may have resulted from the establishment of an oceanic connection with the Tethys Ocean during the early Aptian.

(Table 2) Radiocarbon data (fMC; fraction modern carbon and conventional 14C ages) of foraminifera, TOC and alkenones of cores ME0005A-24JC, Y69-71P and MC16

Paired radiocarbon measurements on haptophyte biomarkers (alkenones) and on co-occurring tests of planktic foraminifera (Neogloboquadrina dutertrei and Globogerinoides sacculifer) from late glacial to Holocene sediments at core locations ME0005-24JC, Y69-71P, and MC16 from the south-western and central Panama Basin indicate no significant addition of pre-aged alkenones by lateral advection. The strong temporal correspondence between alkenones, foraminifera and total organic carbon (TOC) also implies negligible contributions of aged terrigenous material. Considering controversial evidence for sediment redistribution in previous studies of these sites, our data imply that the laterally supplied material cannot stem from remobilization of substantially aged sediments. Transport, if any, requires syn-depositional nepheloid layer transport and redistribution of low-density or fine-grained components within decades of particle formation. Such rapid and local transport minimizes the potential for temporal decoupling of proxies residing in different grain-size fractions and thus facilitates comparison of various proxies for paleoceanographic reconstructions in this study area. Anomalously old foraminiferal tests from a glacial depth interval of core Y69-71P may result from episodic spillover of fast bottom currents across the Carnegie Ridge transporting foraminiferal sands towards the north.

Financial Aspects of Transactions with FDI: Trade Credit Provision by SMEs in China

This paper will document financial aspects of transactions, and trade credit supply behavior with FDI among small and medium-sized enterprises(SMEs) based on two original surveys, conducted in four cities in China in 2003. The survey was designed to capture the nature of inter-firm transactions, trade credit and other financial conditions. Literature on FDI mainly refers to technology transfer, employment or investment. This paper focuses on the role and significance of FDI in the supply of trade credit due to its trade credit enforcement technology. Yanagawa, Ito and Watanabe [2006] developed a model which indicates that when a seller has higher enforcement technology or a buyer has richer liquidity, both trade credit and transaction volume will be increased. In this paper, we confirmed that FDI and G contributed to the provision of trade credit and had a positive external effect on trade credit enforcement towards China’s economy. (1) Sales towards FDI customers have the power to increase the trade credit ratio,even when controlling other factors such as choice of payment instrument, competitiveness, and expost default management. This implies that FDI does provide trade credit, not only because it has superior liquidity, but because it is also superior in terms of enforcement of trade credit repayment.(2) Cash constraints of the buyer influence the decisions concerning trade credit provided by the seller, as a model in Yanagawa, et al. [2006] predicted, and this implies that strategic default is a serious concern among SMEs in China. (3) Spillover effect exists in payment enforcement technology in transactions with FDI customers.

Application of the Input-Output Decomposition Technique to China's Regional Economies

Structural decomposition techniques based on input-output table have become a widely used tool for analyzing long term economic growth. However, due to limitations of data, such techniques have never been applied to China's regional economies. Fortunately, in 2003, China's Interregional Input-Output Table for 1987 and Multi-regional Input-Output Table for 1997 were published, making decomposition analysis of China's regional economies possible. This paper first estimates the interregional input-output table in constant price by using an alternative approach: the Grid-Search method, and then applies the standard input-output decomposition technique to China's regional economies for 1987-97. Based on the decomposition results, the contributions to output growth of different factors are summarized at the regional and industrial level. Furthermore, interdependence between China's regional economies is measured and explained by aggregating the decomposition factors into the intraregional multiplier-related effect, the feedback-related effect, and the spillover-related effect. Finally, the performance of China's industrial and regional development policies implemented in the 1990s is briefly discussed based on the analytical results of the paper.

Clothing Export from sub-Saharan Africa : Impact on Poverty and Potential for Growth

Increases in clothing exports after 2000 signaled the first incidence of large-scale manufacturing exports from sub-Saharan Africa. Using firm-level information, this paper explores the potential of clothing exports for poverty reduction and further growth as seen in other low income countries. It shows that the garment exporting industries in Kenya and Madagascar have contributed poverty reduction in the short term by providing mass employment for female and less educated workers with wages beyond the poverty line. However, the long-term impact is not certain. High production costs and limited development of local firms weaken potential for further growth in the competitive world market. Upgrading of the market and improvement of efficiency are required to remain competitive for African industries, and governmental support for local participation are needed to facilitate technology transfer.

Is South Sulawesi a Center of Growth in Eastern Indonesia? : Japanese ODA Strategy Revisited

Japanese ODA, especially that undertaken by JICA, has targeted South Sulawesi Province as a core area of development in eastern Indonesia, with hope that the economic growth of South Sulawesi will bring about spillover effects in other regions. This paper tests the validity of the strategy using a framework of Vector Autoregressive model. The results show that South Sulawesi’s economy Granger causes other regions in eastern Indonesia, but not vice versa, implying that South Sulawesi drives the development of other regions in eastern Indonesia. Further analysis shows that the development of the agricultural sector in South Sulawesi potentially has the highest spillover effects than other sectors and that the magnitude of spillover effect from South Sulawesi on eastern Indonesia is higher than other economically important regions, such as Eastern Java and Kalimantan.

FDI and Export Participation of Local Firms in Africa: The Case of the Kenyan Garment Industry

FDI in the garment sector has been the single case of large-scale manufacturing investment in African low-income countries since the 1990s. While FDI has triggered the development of local industries in many developing countries, it has not yet been realized in Africa. This paper describes the spillover process in the Kenyan garment industry and investigates the background of local firms' behavior through firm interviews and simulation of expected profits in export market. It shows that credit constraint, rather than absorptive capacity, is a primary source of inactive participation in export opportunity. Only firms which afford additional production facilities without sacrificing stable domestic supply may be motivated to start exporting. However, in comparison with successful Asian exporters, those firms were not as motivated as Asian firms due to the large gap in expected profits.

Chapter 8 Location Choice of Japanese Multinationals: Country Characteristics or Region Characteristics?

In the present global era in which firms choose the location of their plants beyond national borders, location characteristics are important for attracting multinational enterprises (MNEs). The better access to countries with large market is clearly attractive for MNEs. For example, special treatments on tariffs such as the Generalized System of Preferences (GSP) are beneficial for MNEs whose home country does not have such treatments. Not only such country characteristics but also region characteristics (i.e. province-level or city-level ones) matter, particularly in the case that location characteristics differ widely between a nation's regions. The existence of industrial concentration, that is, agglomeration, is a typical regional characteristic. It is with consideration of these country-level and region-level characteristics that MNEs decide their location abroad. A large number of academic studies have investigated in what kinds of countries MNEs locate, i.e. location choice analysis. Employing the usual new economic geography model (i.e. constant elasticity of substitution (CES) utility function, Dixit-Stiglitz monopolistic competition, and ice-berg trade costs), the literature derives the profit function, of which coefficients are estimated using maximum likelihood procedures. Recent studies are as follows: Head, Rise, and Swenson (1999) for Japanese MNEs in the US; Belderbos and Carree (2002) for Japanese MNEs in China; Head and Mayer (2004) for Japanese MNEs in Europe; Disdier and Mayer (2004) for French MNEs in Europe; Castellani and Zanfei (2004) for large MNEs worldwide; Mayer, Mejean, and Nefussi (2007) for French MNEs worldwide; Crozet, Mayer, and Mucchielli (2004) for MNEs in France; and Basile, Castellani, and Zanfei (2008) for MNEs in Europe. At the present time, three main topics can be found in this literature. The first introduces various location elements as independent variables. The above-mentioned new economic geography model usually yields the profit function, which is a function of market size, productive factor prices, price of intermediate goods, and trade costs. As a proxy for the price of intermediate goods, the measure of agglomeration is often used, particularly the number of manufacturing firms. Some studies employ more disaggregated numbers of manufacturing firms, such as the number of manufacturing firms with the same nationality as the firms choosing the location (e.g., Head et al., 1999; Crozet et al., 2004) or the number of firms belonging to the same firm group (e.g., Belderbos and Carree, 2002). As part of trade costs, some investment climate measures have been examined: free trade zones in the US (Head et al., 1999), special economic zones and opening coastal cities in China (Belderbos and Carree, 2002), and Objective 1 structural funds and cohesion funds in Europe (Basile et al., 2008). Second, the validity of proxy variables for location elements is further examined. Head and Mayer (2004) examine the validity of market potential on location choice. They propose the use of two measures: the Harris market potential index (Harris, 1954) and the Krugman-type index used in Redding and Venables (2004). The Harris-type index is simply the sum of distance-weighted real GDP. They employ the Krugman-type market potential index, which is directly derived from the new economic geography model, as it takes into account the extent of competition (i.e. price index) and is constructed using estimators of importing country dummy variables in the well-known gravity equation, as in Redding and Venables (2004). They find that "theory does not pay", in the sense that the Harris market potential outperforms Krugman's market potential in both the magnitude of its coefficient and the fit of the model to be estimated. The third topic explores the substitution of location by examining inclusive values in the nested-logit model. For example, using firm-level data on French investments both in France and abroad over the 1992-2002 period, Mayer et al. (2007) investigate the determinants of location choice and assess empirically whether the domestic economy has been losing attractiveness over the recent period or not. The estimated coefficient for inclusive value is strongly significant and near unity, indicating that the national economy is not different from the rest of the world in terms of substitution patterns. Similarly, Disdier and Mayer (2004) investigate whether French MNEs consider Western and Eastern Europe as two distinct groups of potential host countries by examining the coefficient for the inclusive value in nested-logit estimation. They confirm the relevance of an East-West structure in the country location decision and furthermore show that this relevance decreases over time. The purpose of this paper is to investigate the location choice of Japanese MNEs in Thailand, Cambodia, Laos, Myanmar, and Vietnam, and is closely related to the third topic mentioned above. By examining region-level location choice with the nested-logit model, I investigate the relative importance of not only country characteristics but also region characteristics. Such investigation is invaluable particularly in the case of location choice in those five countries: industrialization remains immature in those countries which have not yet succeeded in attracting enough MNEs, and as a result, it is expected that there are not yet crucial regional variations for MNEs within such a nation, meaning the country characteristics are still relatively important to attract MNEs. To illustrate, in the case of Cambodia and Laos, one of the crucial elements for Japanese MNEs would be that LDC preferential tariff schemes are available for exports from Cambodia and Laos. On the other hand, in the case of Thailand and Vietnam, which have accepted a relatively large number of MNEs and thus raised the extent of regional inequality, regional characteristics such as the existence of agglomeration would become important elements in location choice. Our sample countries seem, therefore, to offer rich variations for analyzing the relative importance between country characteristics and region characteristics. Our empirical strategy has a further advantage. As in the third topic in the location choice literature, the use of the nested-logit model enables us to examine substitution patterns between country-based and region-based location decisions by MNEs in the concerned countries. For example, it is possible to investigate empirically whether Japanese multinational firms consider Thailand/Vietnam and the other three countries as two distinct groups of potential host countries, by examining the inclusive value parameters in nested-logit estimation. In particular, our sample countries all experienced dramatic changes in, for example, economic growth or trade costs reduction during the sample period. Thus, we will find the dramatic dynamics of such substitution patterns. Our rigorous analysis of the relative importance between country characteristics and region characteristics is invaluable from the viewpoint of policy implications. First, while the former characteristics should be improved mainly by central government in each country, there is sometimes room for the improvement of the latter characteristics by even local governments or smaller institutions such as private agencies. Consequently, it becomes important for these smaller institutions to know just how crucial the improvement of region characteristics is for attracting foreign companies. Second, as economies grow, country characteristics become similar among countries. For example, the LCD preferential tariff schemes are available only when a country is less developed. Therefore, it is important particularly for the least developed countries to know what kinds of regional characteristics become important following economic growth; in other words, after their country characteristics become similar to those of the more developed countries. I also incorporate one important characteristic of MNEs, namely, productivity. The well-known Helpman-Melitz-Yeaple model indicates that only firms with higher productivity can afford overseas entry (Helpman et al., 2004). Beyond this argument, there may be some differences in MNEs' productivity among our sample countries and regions. Such differences are important from the viewpoint of "spillover effects" from MNEs, which are one of the most important results for host countries in accepting their entry. The spillover effects are that the presence of inward foreign direct investment (FDI) aises domestic firms' productivity through various channels such as imitation. Such positive effects might be larger in areas with more productive MNEs. Therefore, it becomes important for host countries to know how much productive firms are likely to invest in them. The rest of this paper is organized as follows. Section 2 takes a brief look at the worldwide distribution of Japanese overseas affiliates. Section 3 provides an empirical model to examine their location choice, and lastly, we discuss future works to estimate our model.

The innovation process of a privately-owned enterprise and a state-owned enterprise in China

This study compares the innovation process of a privately-owned enterprise and a state-owned enterprise in China using their patent data. Huawei and ZTE were selected for this study because they experienced the same historical environment in the same industry from the same region in China leaving their owner types as their critical difference. This study investigates the difference in the innovation process in R&D between a privately-owned and a state-owned enterprise by analyzing (1) domestic and international patent application pattern, (2) co-application and co-applicants, (3) knowledge accumulation inside Huawei and ZTE, and (4) knowledge spillover to domestic and foreign firms.

Analysis of house prices to assess economic impacts of new public transport infrastructure: Madrid metro line 12.

Transportation infrastructure is known to affect the value of real estate property by virtue of changes in accessibility. The impact of transportation facilities is highly localized as well, and it is possible that spillover effects result from the capitalization of accessibility. The objective of this study was to review the theoretical background related to spatial hedonic models and the opportunities that they provided to evaluate the effect of new transportation infrastructure. An empirical case study is presented: the Madrid Metro Line 12, known as Metrosur, in the region of Madrid, Spain. The effect of proximity to metro stations on housing prices was evaluated. The analysis took into account a host of variables, including structure, location, and neighborhood and made use of three modeling approaches: linear regression estimation with ordinary least squares, spatial error, and spatial lag. The results indicated that better accessibility to Metrosur stations had a positive impact on real estate values and that the effect was marked in cases in which a house was for sale. The results also showed the presence of submarkets, which were well defined by geographic boundaries, and transport fares, which implied that the economic benefits differed across municipalities.

Análisis de bocinas en MatLab

El presente proyecto parte de un programa utilizado en las prácticas de laboratorio en la asignatura Antenas y Compatibilidad Electromagnética del sexto semestre llamado SABOR, que pretende ser actualizado para que en las nuevas versiones de los sistemas operativos ofrecidos por la compañía Windows pueda ser operativo. El objetivo principal será diseñar e implementar nuevas funcionalidades así como desarrollar mejoras y corregir errores del mismo. Para su mejor entendimiento se ha creado una herramienta en entorno MATLAB para analizar uno de los tipos más comunes de Apertura que se utilizan actualmente, las bocinas. Dicha herramienta es una interfaz gráfica que tiene como entradas las variables elementales de diseño de la apertura como por ejemplo: dimensiones de la propia bocina o los parámetros generales comunes a todas ellas. A su vez, el software nos genera algunos de los parámetros de salida fundamentales de las antenas: Directividad, Ancho de haz, Centro de fase y Spillover. Para el correcto desarrollo del software se ha realizado numerosas pruebas con el fin de depurar y corregir errores con respecto a la anterior versión del SABOR. Por otra parte se ha hecho también hincapié en la funcionalidad del programa para que sea más intuitivo y evitar complejidades. El tipo de antena que se pretende estudiar es la bocina que consiste en una guía de onda en la cual el área de la sección se va incrementando progresivamente hasta un extremo abierto, que se comporta como una apertura. Se utilizan extensamente en satélites comerciales para coberturas globales desde órbitas geoestacionarias, pero el uso más común es como elemento de radiación para reflectores de antenas. Los tipos de bocinas que se van a examinar en la herramienta son: Sectorial H, Sectorial E, Piramidal, Cónica, Cónica Corrugada y Piramidal Corrugada. El proyecto está desarrollado de manera que pueda servir de información teórico-práctico de todo el software SABOR. Por ello, el documento además de revisar la teoría de las bocinas analizadas, mostrará la información relacionada con la programación orientado a objetos en entorno MATLAB cuyo objetivo propio es adquirir una nueva forma de pensamiento acerca del proceso de descomposición de problemas y desarrollo de soluciones de programación. Finalmente se ha creado un manual de autoayuda para dar soporte al software y se han incluido los resultados de diversas pruebas realizadas para poder observar todos los detalles de su funcionamiento, así como las conclusiones y líneas futuras de acción. ABSTRACT This Project comes from a program used in the labs of the subject Antennas and Electromagnetic Compatibility in the sixth semester called SABOR, which aims to be updated in order to any type of computer running a Windows operating systems(Windows 7 and subsequent versions). The main objectives are design and improve existing functionalities and develop new features. In addition, we will correct mistakes in earlier versions. For a better understanding a new custom tool using MATLAB environment has been created to analyze one of the most common types of apertura antenna which is used for the moment, horns. This tool is a graphical interface that has elementary design variables as a inputs, for example: Dimensions of the own horn or common general parameters of all horns. At the same time, the software generate us some of the fundamental parameters of antennas output like Directivity, Beamwidth, Phase centre and Spillover. This software has been performed numerous tests for the proper functioning of the Software and we have been cared in order to debug and correct errors that were detected in earlier versions of SABOR. In addition, it has also been emphasized the program's functionality in order to be more intuitive and avoiding unnecessary barriers or complexities. The type of antenna that we are going to study is the horn which consists of a waveguides which the section area has been gradually increasing to an open-ended, that behaves as an aperture. It is widely used in comercial satellites for global coverage from geostationary orbits. However, the most common use is radiating element for antenna reflectors. The types of horns which is going to be considered are: Rectangular H-plane sectorial, Rectangular E-plane sectorial, Rectangular Pyramidal, Circular, Corrugated Circular and Corrugated Pyramidal. The Project is developed so that it can be used as practical-theorical information around the SABOR software. Therefore, In addition to thoroughly reviewing the theory document of analyzed horns, it display information related to the object-oriented programming in MATLAB environment whose goal leads us to a new way of thinking about the process of decomposition of problems and solutions development programming. Finally, it has been created a self-help manual in order to support the software and has been included the results of different tests to observe all the details of their operations, as well as the conclusions and future action lines.

Testing co-volatility spillovers for natural gas spot, futures and ETF spot using dynamic conditional covariances

There is substantial empirical evidence that energy and financial markets are closely connected. As one of the most widely-used energy resources worldwide, natural gas has a large daily trading volume. In order to hedge the risk of natural gas spot markets, a large number of hedging strategies can be used, especially with the rapid development of natural gas derivatives markets. These hedging instruments include natural gas futures and options, as well as Exchange Traded Fund (ETF) prices that are related to natural gas stock prices. The volatility spillover effect is the delayed effect of a returns shock in one physical, biological or financial asset on the subsequent volatility or co-volatility of another physical, biological or financial asset. Investigating volatility spillovers within and across energy and financial markets is a crucial aspect of constructing optimal dynamic hedging strategies. The paper tests and calculates spillover effects among natural gas spot, futures and ETF markets using the multivariate conditional volatility diagonal BEKK model. The data used include natural gas spot and futures returns data from two major international natural gas derivatives markets, namely NYMEX (USA) and ICE (UK), as well as ETF data of natural gas companies from the stock markets in the USA and UK. The empirical results show that there are significant spillover effects in natural gas spot, futures and ETF markets for both USA and UK. Such a result suggests that both natural gas futures and ETF products within and beyond the country might be considered when constructing optimal dynamic hedging strategies for natural gas spot prices.