Suchergebnisse

The average equity risk premium (ERP) in emerging markets is well-known to be significantly higher than in developed markets. But, key reasons for this remain unclear, contributing to investment strategy uncertainty. Here, we use industry-level data for 19 emerging market countries across three regions of the world to first examine the contribution of each industrial stock market to the extra premium paid by emerging markets to international investors from 1995 to present, and then to explore the relative importance of country-level governance and macroeconomic policy uncertainty in explaining both national and regional industry-by-industry ERP behavior. We conduct separate analyses for the emerging market crises period of 1995-2002, and the post-crises period of 2003-2012. Based on both static and dynamic approaches, we find that some industries indeed perform consistently better than others. In particular: (i) the healthcare and basic materials industries mostly contributed to the extra premium paid by the Asian stock market; and (ii) the East European and Latin American stock markets' extra performances were largely driven by the utilities and consumer services industries, respectively. However, our cross-sectional analyses suggest that country-level governance indicators are not strongly correlated with either national or industry-level returns, with the exception of the consumer goods industry. Lastly, using both rolling-window and DCC-GARCH frameworks, we find that correlations between industrial stock market excess returns and a measure of global economic policy uncertainty are consistently negative, and follow similar patterns. Our empirical evidence as a whole suggests that industrial stock markets are more highly related both within and across countries and regions than has been suggested previously. Contrary to much existing empirical work, our results therefore suggest there is currently little space in emerging markets to exploit cross-industry portfolio diversification benefits. © 2013 Elsevier B.V.

The Community Forestry Program in Nepal is a global innovation in participatory environmental governance that encompasses well-defined policies, institutions, and practices. The program addresses the twin goals of forest conservation and poverty reduction. As more than 70 percent of Nepal's population depends on agriculture for their livelihood, community management of forests has been a critically important intervention. Through legislative developments and operational innovations over three decades, the program has evolved from a protection-oriented, conservation-focused agenda to a much more broad-based strategy for forest use, enterprise development, and livelihood improvement. By April 2009, one-third of Nepal�s population was participating in the program, directly managing more than one-fourth of Nepal�s forest area. The immediate livelihood benefits derived by rural households bolster strong collective action wherein local communities actively and sustainably manage forest resources. Community forests also became the source of diversified investment capital and raw material for new market-oriented livelihoods. Community forestry shows traits of political, financial, and ecological sustainability, including emergence of a strong legal and regulatory framework, and robust civil society institutions and networks. However, a continuing challenge is to ensure equitable distribution of benefits to women and marginalized groups. Lessons for replication emphasize experiential learning, establishment of a strong civil society network, flexible regulation to encourage diverse institutional modalities, and responsiveness of government and policymakers to a multistakeholder collaborative learning process. ; Non-PR ; IFPRI1; GRP4; DCA; 2020 ; DGO