Externality

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Externality

The cost or benefits of a transaction to parties who do not directly participate in it. Externality can be either positive or negative. For example, a merger can lead to higher share prices and bonuses for employees, benefiting shareholders and employees at the two companies merging, This can create wealth and positively impact a community. On the other hand, the merger can drive a competitor out of business, which results in layoffs and reduced wealth, which can hurt a community. Externality is also called spillover or the neighborhood effect. See also: External benefit, External cost.

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To delve further into the influence of export spillovers on foreign firms, the sample was divided into domestic firms exporting ORD or HBR products and, for each subsample, the specification of the comparison regression was applied (column 1, table 6).

A relevant question for economies that depend greatly on a small number of countries, as is the case of Mexico, is whether export spillovers increase the possibility that domestic firms export to other different international markets.

?EL TIPO DE VECINOS IMPORTA? SPILLOVERS DE EXPORTACION HETEROGENEOS SOBRE COMPANIAS DOMESTICAS EN MEXICO

Further, the study concludes that the major contributing factor in volatility spillovers is equity portfolio, and the spillover cycle of business cycle variations and asset market return is correlated.

ASYMMETRIC AND VOLATILITY SPILLOVER EFFECTS BETWEEN GOLD, EXCHANGE RATE AND SECTORAL STOCK RETURNS IN PAKISTAN

FDI spillovers and their interrelationship with trade.

Regional disparities in the spillover effect

Bond market spillovers from Saudi to other GCC countries are found to be insignificant, which is consistent with previous findings that bond spreads are largely influenced by global factors.

'Developments in Saudi economy have major impact on Bahrain'

* Second, there is a company premium in making the most of their own intangible investments (or from other companies' intangible spillovers), and those firms will have competitive success.

Capitalism without Capital: The Rise of the Intangible Economy

Intra-and inter-regional return and volatility spillovers across emerging and developed markets: Evidence from stock indices and stock index futures.

Return and Volatility Spillover across stock markets of China and its Major Trading Partners: Evidence from Shanghai Stock Exchange Crash

Firms can improve their market profitability by undertaking investments in R&D, which reduce their unit costs of production and entail positive spillovers on the rival's cost.

Cooperative R&D and Commitment to A Policy of Know-how Trading

Policy interest rates generally rise by between 10-20 basis points, and by more for those economies who are members of the Euro Area, reflecting the spillovers into demand from stimulus elsewhere.

A MODEL-BASED ANALYSIS OF THE EFFECT OF INCREASED PUBLIC INVESTMENT

Earlier studies (Coe and Helpman 1995; Kao, Chiang, and Chen 1999; Keller 1998) as well as a more recent one (Ang and Madsen 2013) focus on various transmission channels of knowledge spillovers while they neglect the institutional status in the recipient country.

KNOWLEDGE SPILLOVERS AND OUTPUT PER WORKER: AN INDUSTRY-LEVEL ANALYSIS FOR OECD COUNTRIES

Liu and Pan (1997) examine the mean and volatility spillovers from U.S.

Dragon's Entry in South Asia and Its Impact on Financial Markets

Such taxes directly incentivize workers to enter professions with the highest social spillovers.