Eurasian Journal of Business and Economics

25-44

Authors: Satyendra Nath CHAKRABARTTY, Deepankar SINHA

The composition and share of export items from a country change over time. Individual exporting companies take firm-level actions to keep up their market share. A relative (to the point of reference) and comparative (compared to other exportable goods) advantage index for an export item can aid decision-making at the country and company levels. Present literature shows less reference to the existence of such an index. The popular Balassa’s revealed comparative advantage (B-RCA) index measures the comparative strength of a product at any given period. However, this method and its variants are time stationary and not directly applicable for sectors, i.e., groups of commodities with the same first four digits of the HS Code. Sector-level RCA aids in identifying the country's comparative advantage over the sector over time. For a given set of products, the paper uses many partner countries and a manyproduct trade approach. This paper suggests two indices to reflect the dynamic RCA. It suggests calculating the ratio of the Balassa index for each product for the current period and reference period – the relative revealed comparative advantage (RRCA); proposes geometric aggregation of these ratios to get a composite RCA (CRCA) index for a country.

63-86

Authors: Hami SAKA, Mehmet ORHAN

This paper attempts to investigate the effect of technology on employment based on skill groups in developing countries using data from 23 countries between 1990 and 2019. We use the macroeconomic framework to split employment in developing countries into high-skilled and low-skilled and examine how these two groups are affected by progress in technology. Pedroni’s (1999, 2004) and Kao’s (1999) cointegration methods reveal the statistically significant relationship among variables in the long run. Coefficients estimated in cointegration highlight that technology is among the factors that increase unemployment in developing countries. In addition, our baseline models document that inflation and real interest rates have a positive impact on unemployment. Finally, both high-skilled and lowskilled employment in developing countries are negatively affected by technology, and the negative impact is greater on low-skill employment.

19-33

Authors: Sruthy MADHAVAN, Sreejith S

During the period of extreme financial turmoil, investors will include hedge and safe- haven assets in their portfolios. The present study looked at the dynamic link between gold return and the world stock return during crises. The study examined the conditional correlation between world stock and gold return. It investigated the usefulness of gold as a safe haven for stocks in the bear markets from January 2001 to June 2021 using daily MSCI stock index and gold price data. The crisis period is defined as the bear stock market in the present study, and bear markets were identified using the algorithm of Pagan and Sossounov (2003). Seven bear markets were identified for the purpose of the study. A combination of the DCC-GARCH model and OLS regression were employed to determine the relationship between gold and the MSCI world stock index. The study found that the dynamic conditional correlations are primarily negative in the bear markets under investigation. Gold performs the role of a safe haven for all bear markets except for the bear market from 2004-02-27 to 2004-06-30. It was concluded that gold acts as a robust, safe haven during turmoil and safe haven property depends on the severity of stock price changes. The findings have implications for policymakers and investors.

51-66

Authors: Irfan DJEDOVIĆ, Hisham KHALLAF

The main objective of the study is to empirically investigate the impact of the Conventional stock market index on the Islamic stock market index and the comparative performance of the two stock market indexes. For the purpose of the study, daily observations of Dow Jones Islamic Market US Titans 50 (DJUS50) and Dow Jones Composite Index (DJA) spanning a period from January 2015 until December 2021 are obtained from the Investing.com database. Risk-adjusted performance, VAR model, granger-causality test, generalized impulse response functions, and Johansen cointegration tests are used to investigate the behavior and performance of the Islamic market index empirically. Results based on risk-adjusted performance indicate that the Islamic market index performs better than the Conventional market index. Furthermore, the results suggest no long-run association between the indexes, while there is short-run bidirectional causality. This study will contribute both to the literature and practice. It will contribute to the already existing literature through the usage of the newest data, while the practical implication will help investors to better understand the behavior of the Islamic stock market index.