New Technologies for Exchange-Traded Funds
This chapter studies the role of information and communication technologies in the diffusion of exchange-traded funds in the countries of the Asia-Pacific region. It investigates two processes with the potentially profound impact on the local economies: d
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New Technologies for Exchange-Traded Funds
6.1 Introductory Notes In this chapter, we study the role played by the information and communication technologies in the diffusion of exchange-traded funds in the countries of the Asia- Pacific region. We investigate therefore jointly two processes with the potentially profound impact on the local economies, examined separately in the two preceding chapters: development of the ETFs markets and deployment of ICT—both of them were designated as “diffusion,” diffusion of the innovative investment funds and diffusion of the new technologies, respectively. In contrast with Chap. 4, in the current part of our analysis, we use exclusively the absolute approach to the evaluation of the ETFs market development (diffusion of ETFs) in order to ensure that our research sample is as comprehensive as possible (utilizing relative approach would mean excluding 6 out of 12 countries); for more details, see Sect. 2.3. For the in- depth analysis of the selected ETFs markets and the results of the analysis conducted using the models of diffusion of innovation, see Chap. 4. Corresponding analysis for the ICT indicators is presented in the Chap. 5. It should be stressed that analysis in the Chap. 4 was based on the monthly data on the turnover of ETFs albeit the analysis in the Chap. 5, due to data availability, focused on the annual evidence. Consequently, we begin the current chapter by “linking” the two previous perspectives and discussing briefly basic evidence on the turnover of ETFs in the annual perspective. The next part of the chapter discusses the evidence on the relationship between ETFs and ICT on the regional level—the conclusions that can be formulated above all with the application of the panel models. Final part covers the results of the country-specific analysis, performed separately for each country. Analogously to the previous parts of our study, we use data on ETFs and ICT in 12 Asia-Pacific countries, i.e., all in the region in which ETFs were traded for the majority of the analyzed time period. Time period of our analysis in the current chapter is 2004–2016. Annual data on the turnover of ETFs are used, calculated as
© Springer Nature Switzerland AG 2019 A. Marszk et al., The Emergence of ETFs in Asia-Pacific, https://doi.org/10.1007/978-3-030-12752-7_6
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6 New Technologies for Exchange-Traded Funds
the sum of the monthly turnover in a given year in particular country. In case of the ICT indicators, no conversion is necessary as annual data were already utilized and discussed in Chap. 5. Sources of data were provided in the preceding chapters. It should be emphasized that the topic of linkages between new technologies and the diffusion of ETFs was rarely studied empirically—the scarce evidence presented in Lechman and Marszk (2015) implies that ICT are one of the factors that influence positively the development of ETFs markets in certain countries. We adopt a different approach by analyzing a larger group of countries (more homogeneous—in one region) an
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