Changes In The Extent Of Finacial Interdependence Between The G7 Countries In The 1970s and 1980s
This paper uses principal components analysis to examine the extent to which financial interdependence within the G7 countries has changed between the 1970s and the 1980s. In general, evidence is found of both greater capital market integration and of monetary interdependence. More specifically, the US, Japan and West Germany have all lost some degree of autonomy over monetary policy, while the UK has retained some autonomy by remaining outside the exchange rate mechanism of the European monetary system. In terms of capital market intergration, five of the G7 countries seem to have become more interdependent, the exceptions being Japan and the UK. [F15, F36]
This study investigates the factors of firm growth and analyses profitability by sourcing panel data of the non-life insurance industry in Taiwan. I initially utilise logistic regression to examine the insurer's growth factors. Further, I examine the effect of the relationship between firm growth and business structure on the insurer's profitability. The findings reveal that reinsurance, input costs, return on investment (ROI), and firm age have significant impact on firm growth, but firm size and firm growth are independent of each other. I also find that underwriting risk, input costs, ROI, and financial holding group influence the insurer's profitability. Furthermore, firm growth and business structure have different significant impact on firms profitability in the profit ratio model and the operating ratio model, respectively. My results have practical implications for the insurance industry and competent authorities in Taiwan.