Hedge

Emerging market policy makers have been concerned about the financial stability implications of financial globalisation. These concerns are focused on behaviour under stressed conditions. Do tail events in the home country trigger off extreme responses by foreign investors -are foreign investors `fair weather friends'? In this, is there asymmetry between the response of foreign investors to very good versus very bad days? Do foreign investors have a major impact on domestic markets through large inflows or outflows -are they 'big fish in a small pond'? Do extreme events in world markets induce extreme behaviour by foreign investors, thus making them vectors of crisis transmission? We propose a modified event study methodology focused on tail events, which yields evidence on these questions. The results, for India, do not suggest that financial globalisation has induced instability on the equity market.

The authors thank Phil Gharghori for providing some of the data used in our regressions, Thang Do for technical assistance, and an anonymous referee for helpful comments. Hodgson acknowledges financial support from the Australian Research Council (LG A00104218).

Hedges are widely encountered throughout the world. In Brittany (Western France), as well as more generally in Western and Central Europe, they are mainly represented as ''bocage'', a rural landscape with cultivated fields enclosed by hedges. In temperate climates, the impact of evapotranspiration from hedges on soil water content and dynamics is seldom addressed as a management issue at the catchment scale, in spite of some evidence that hedges may modify catchment hydrology. The present study uses a modeling approach to estimate the impact of different hedge networks on the hydrology of a small temperate catchment. This study uses a spatialized hydrological model (TNT2) in which the hedge effect takes into account an additional and deeper soil water uptake through evapotranspiration. The modeling is based on the actual hedge networks in 1948 and 2000 on an experimental catchment, as well as different scenarios of landscape management and a large set of rainfall conditions. At the local scale, the impact of hedges depends on their location on the hillslope and hence on the depth of the groundwater level below the soil surface. At the catchment scale, the additional annual actual evapotranspiration (AET) due to hedges represents between 5 and 30% of the annual AET. This effect depends on the hedge network density and spatial structure. It depends also on the climate, with an increasing impact for the driest years. This study is a preliminary simple approach to the impact of hedges on the hydrology of a small rural catchment. The advantage of this approach is that it takes into account the spatial interactions in the catchment and facilitates the www.elsevier.com/locate/agwat Agricultural Water Management 74 comparison of different scenarios of hedge spatial structure. Despite the lack of precise information on hedge evapotranspiration in the region and the simple description of AET in the model, we are able to give orders of magnitude for the hedge effect based on choices of model parameterization as well as different modalities of hedge density and location. #

Les lettres renvoient àl an omenclature des horizons de sol (WRB, 2006). Les sols sont limoneux sur un substrat de limons sur schiste. Le versant présente une pente moyenne de 6% .L ed énivelé au niveau du talus est de 90cm. Le sol est utilisé en culture annuelle en amont de la haie et en prairie permanente en aval (d'après Walter et al.,2 003).

This research was intended to determine whether men and women were different with respect to the use of intensifiers, hedges and tag questions in English and Persian. To conduct the study, R. ideas concerning linguistic differences between males and females were taken into account. In order to gather the most natural-like data, 6 English and 8 Persian film-scripts with a family and social theme were randomly selected from amongst all the scenarios available in two libraries of the University of Shiraz. In all, 9,280 utterances were studied. The data were then divided into four major groups: (1) cross gender, same culture, (2) same gender, cross culture; (3) cross gender, cross culture; and (4) cross culture data. The results of the 21 Chi-squares computed showed no significant difference between the groups on the use of intensifiers, hedged and tag questions. The findings of the study did not confirm Lakoff's opinion regarding gender-bound language at least in the three areas and the corpus inspected in this research.

This paper discusses how the communicative purpose of the different rhetorical sections of research papers (RP) and case reports (CR) in medical English written discourse influences the frequency and category distribution of the modulation devices (hedges) used in each section.

The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate. This paper analyzes the price stabilizing properties of puttable and extendible bonds, their potential to help develop interest-rate derivative markets, and their use by governments. Their stabilizing properties imply that, when bond prices fall, prices for puttable and extendible bonds fall by less. Their embedded options work as a cushion and replicate the trading gains from hedging long-term bonds with interest rate derivatives. These bonds can help develop interest-rate derivative markets in developing countries and eventually increase demand for long-term government bonds. Informal evidence from OECD countries suggests that these bonds were useful in the 1980s, when interest rates were volatile. JEL Classification Numbers: G13, G15

The aim of this study was to assess whether leys used for nitrogen fixation and fodder, which cover from a fifth to more than half the acreage on organic farms, as well as short rotation coppice (SRC) used for energy purposes, have potentials as reservoirs for aphid parasitoids in organic agriculture. Exposure of cereal aphids to naturally occurring parasitoids in various crops showed that parasitoids capable of parasitizing the pest aphid Sitobion avenae were active in ley, alfalfa and SRC from spring to late autumn, but in barley fields only in midsummer. Parasitism by Aphidius sp. dominated in ley, whereas parasitism by Praon sp. was most frequent in SRC. Alternative aphid hosts for parasitoids of S. avenae were shown to be present in late summer, late autumn and early spring in ley and SRC. Within field distribution of parasitism and prevalence of entomophtoralean fungi on aphids in spring barley fields were determined by spatially explicit sampling, but was not consistently affected by proximity to ley or SRC. The data indicate that SRC hedges and clover/grass leys in the rotation may increase diversity and activity of parasitoids attacking cereal aphids.

Since the Asian crisis, ASEAN5 countries have expended considerable effort in trying to develop their domestic bond markets. Yet today these markets are not much larger, relative to GDP, than they were a decade before. How can we explain this? And does this mean that domestic markets have not, in fact, developed? The paper argues that bond market growth has been held back by a sharp fall in investment rates, which has left firms with little need for bond borrowing. Even so, markets have developed in other ways, to such an extent that substantial amounts of foreign portfolio investment have begun to flow into ASEAN5 bonds. These developments have important ramifications. With the investor base growing and infrastructure investment likely to rise, ASEAN5 bond markets could expand rapidly over the next decade, holding out the prospect that the region could finally achieve "twin engine" financial systems.

Corporates enter the financial markets as natural hedgers for their interest rate and/or foreign exchange exposures. Few companies, however, utilise the equity derivative markets to their advantage -to hedge certain corporate action events. In this exposé we will discuss three case studies to understand how equity derivatives are utilised by corporates to assists them in reaching their goals. In the first case study we will look at how Venfin used equity derivatives to fund a transaction. We will then turn to corporate warrants. In the second case study we will show how Richemont and Remgro used these instruments prudently to sell some of their tobacco interests. In the last case study we will turn to a transaction between UBS and LTCM. Here we will highlight the risks in using corporate warrants for the wrong reasons. Through the case studies we also learn that payoff diagrams are essential tools in understanding structured derivatives.

Linear habitats are becoming increasingly common as a consequence of habitat fragmentation, and may provide the sole habitat for some species. Hedgerows are linear features that can vary substantially in structure and quality. Having surveyed 180 hedgerows, in four locations, and sampled their small mammal communities we examined the effect of physical hedgerow attributes on the abundance of small mammal species. Using three elements of landscape structure, we explored whether variation was best explained by the Random Sample Hypothesis (that small islands represent a random sample of those species populating larger areas), or by the Fragmentation Hypothesis (that species abundance will decrease with a loss of habitat area). We tested the relationship between the relative abundance of small mammals and 1. hedgerow connectivity; 2. total habitat availability and 3. local habitat complexity. We then explored the predictive power of combinations of these habitat variables. Connectivity was a positive predictor of wood mice Apodemus sylvaticus, and hedgerow gappiness was a negative predictor of bank voles Clethrionomys glareolus. The total amount of habitat available (hedgerow width, height and length) was a positive indicator of total small mammal biomass. These results support the Fragmentation Hypothesis that species abundance and distribution decrease with a loss of habitat area. The preservation of linear and associated habitats may therefore be important in maintaining metapopulations of the species we studied.

The present study investigates whether listed Brazilian companies between 1995 and 2008 coordinated cash and debt policies for effects of hedging against underinvestment under conditions of financial constraint. The results indicate the absence of a hedging component when simultaneously using cash and debt policies in constrained firms. For firms with financial constraints there was positive sensitivity of cash to cash flow and negative sensitivity of debt to cash flow, regardless of the need for hedging. The unconstrained firms did not present statistically significant sensitivity of cash to cash flow, but presented negative sensitivity of debt to cash flow, results that were also independent of the need for hedging. These findings run counter to those of Acharya, Almeida & Campello (2007) in the American market, where cash and negative debt were found to play different roles in intertemporal optimization of investments among constrained firms, according to the need for hedging.

The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate.

Although there has been a clear quantitative and qualitative decline in traditional hedgerow network landscapes during last century, hedgerows are crucial for the conservation of rural biodiversity, functioning as an important habitat, refuge and corridor for numerous species. To safeguard this conservation function, insight in the basic organizing principles of hedgerow plant communities is needed. The vegetation composition of 511 individual hedgerows situated within an ancient hedgerow network landscape in Flanders, Belgium was recorded, in combination with a wide range of explanatory variables, including a selection of spatial variables. Non-parametric statistics in combination with multivariate data analysis techniques were used to study the effect of individual explanatory variables. Next, variables were grouped in five distinct subsets and the relative importance of these variable groups was assessed by two related variation partitioning techniques, partial regression and partial canonical correspondence analysis, taking into account explicitly the existence of intercorrelations between variables of different factor groups. Most explanatory variables affected significantly hedgerow species richness and composition. Multivariate analysis showed that, besides adjacent land use, hedgerow management, soil conditions, hedgerow type and origin, the role of other factors such as hedge dimensions, intactness, etc., could certainly not be neglected. Furthermore, both methods revealed the same overall ranking of the five distinct factor groups. Besides a predominant impact of abiotic environmental conditions, it was found that management variables and structural aspects have a relatively larger influence on the distribution of plant species in hedgerows than their historical background or spatial configuration.

Field boundaries and ®elds on 22 pairs of organic and conventional farms in England and Wales were surveyed over three breeding seasons (April±July) and two autumn (September±November) and winter (December±February) periods in order to ascertain whether organic and conventional farms diered in the size and diversity of their associated bird populations. Species diversity was signi®cantly higher on organic farms in the 1994 breeding season, but in no other year or season. Of 18 species, eight showed a signi®cantly higher density on organic ®eld boundaries in at least one season/year, with a greater number of signi®cant results being detected in the autumn. There were very few signi®cant dierences in bird density in ®elds outside the breeding season. The density of breeding skylarks Alauda arvensis, the principal ®eld nesting species, was signi®cantly greater on organic farms in one breeding season. Hedges tended to be higher and wider, ®eld boundaries tended to have more trees and ®eld sizes tended to be smaller on organic farms. Canonical correspondence analysis indicated that components of habitat structure were important in explaining dierences in bird density between farm types for certain species. #

This paper attempts to analyze the relation among gold prices and other macroeconomic and financial variables and addresses the question whether gold is a safe haven or a hedge for investors. The study investigates the relationship by using an econometric analysis for top gold exporter and importer countries, for a sample period of 11 years from 2000 to 2011. The results are twofold (i) return of silver, USD returns and change in the volatility index influences gold returns positively whereas, Swiss Franc and Canadian Dollar returns influence gold returns negatively regardless of presence of the 2008 crisis. (ii) In times of stress, our findings indicate that Swiss Franc, Norwegian Krone and Canadian Dollar function as haven whereas, on average, Swiss Franc, Canadian Dollar and 10 year US treasuries function as a hedge against gold but the results show no evidence for the US dollar.  

In third generation currency crises models, balance sheet losses from currency depreciations propagate the crises into the real sector of the economy. To test these models, we built a firmlevel database that allowed us to measure currency mismatches around the 2002 Brazilian currency crisis. We found that between 2001 and 2003, firms with large currency mismatches just before the crisis reduced their investment rates 8.1 percentage points more than other publicly held firms. We also showed that the currency depreciation increased exporters revenue, but those with currency mismatches reduced investments 12.5 percentage points more than other exporters. These estimated reductions in investment are economically very significant, underscoring the importance of negative balance sheet effects in currency crises. JEL Classification: F32; F34; G31; G32

The collapse of world currencies had created most of investors and public did not want to keep currency as their reserves. They plan to possess other financial instruments such as commodities and precious metals as a substitute for currencies; and one of it is gold. Gold had been identified as a good hedge for inflation. Besides, the existence of gold as an exchange rate hedge for various currencies had been identified. Nevertheless, none of these examine gold ability as exchange rate hedge with respect to the MYR/USD. Therefore, the objective of this study is to investigate the ability of gold as a hedge in Malaysia context. The study covers 23 years period which from January 1985 to December 2012. A negative relationship between gold return and this exchange rate is indeed found in this study. Thus during the past 28 years, gold has behaved as a hedge for USD in Malaysia.

Hedging operations acquire macroeconomic significance with the expansion of financial derivatives. The specification of the concept of such operations of risk transfer leads to modifications in the concept of speculation. Arbitrage operations intensify, but their frontiers with speculation are not always clear. Both make intense use of leverage which can result in heavy losses.

Buffer strips (BSs) are strips interposed between fields and streams that intercept and treat the waters leaving cropland, and so are a useful tool for reducing agricultural diffuse pollution in lowland areas. If properly vegetated and managed, they can also produce wood for burning, act as sinks for atmospheric CO 2 and enhance the landscape beauty.

Although hedgerows, windbreaks, and other biodiversity-enhancing farm edge features offer the potential for ecosystem benefits without occupying much crop space, relatively few farms in California, USA include such features. Our study identified the practices currently used to manage non-cropped edges of fields, ponds, and watercourses in a case study area in California. We also identified social, economic, and agronomic incentives and constraints to installing biodiversity-enhancing edge features. More than onethird of the study farmers had installed native hedgerows, windbreaks, and/or grassed edges. Interviews demonstrated the importance of socially influential farmers working in tandem with public and private agencies to build initial interest in these practices. However, these features occupied less than four percent of all possible edge length. Constraints to increasing adoption included high costs, fear of harbouring weeds and rodents, and lack of certainty about ecosystems benefits, highlighting the need for cost-share programs and more regionally-focused agroecological research.

A study of the vertical distribution of flowering and fruit set and of components of yield (fruit numbers, fruit size, and fruit oil content) was maintained for 2 years in N–S- and E–W-oriented olive hedgerows of comparable structure (row spacing 4 m, hedgerow height to 2.5 m, width c. 1 m) near Toledo, Spain (39.9°N). Mean yield of the N–S orchard was 1854 kg oil/ha without difference between sides or years. Yield of the E–W orchard was greater in 2006, producing 2290 kg/ha, but only 1840 kg/ha in 2007, the same as the N–S orchard. The S side of the E–W orchard yielded more (59%) than the N side in 2007. In both orchards and years, most fruit was produced at 1.0–2.0 m height and fruit density was the most influential component in these differences, reflecting more intense bud initiation in these upper layers. Other components that determined fruit number, fertile inflorescences, fruits per fertile inflorescence, and fruit drop were not significantly different between layers. Fruit ...

Derivative products like futures and options on Indian stock markets have become important instruments of price discovery, portfolio diversification and risk hedging in recent times. The objective of the study is to analyze the perception of investors regarding the derivatives market in India. The study was conducted on a sample of investors who are active participants in the cash and derivative segment of the NSE and BSE. The primary data for this research was collected from a sample of 140 people who are currently trading in the city of Udaipur, India. The research findings could be utilized by broking firms, investors and scholars for further analysis on investor's perception and to understand this issue critically. This paper explores the perception of investors on cash market and derivative market using data of stock and index futures and options. The result shows that the majority of investors invest in cash market.

This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate. This paper reviews macroeconomic aspects of pension reforms in Latin America, focusing on financial market stability and fiscal sustainability. Concentration of pension fund portfolios in government bonds remains high, and the lack of new investment alternatives has distorted asset prices. Countries have gradually liberalized investments abroad, but remain wary of the impact on foreign currency markets. The fiscal costs of the transition to funded systems have been higher than expected, and have contributed to high debt levels. The paper highlights the importance of coordinating changes in portfolio limits with debt management policies and measures to develop securities markets.

Buffer strips (BSs) are strips interposed between fields and streams that intercept and treat the waters leaving cropland, and so are a useful tool for reducing agricultural diffuse pollution in lowland areas. If properly vegetated and managed, they can also produce wood for burning, act as sinks for atmospheric CO 2 and enhance the landscape beauty.

The paper makes an assessment of the progress made in developing local debt markets in emerging Asia. Market development has been limited by hurdles confronting borrowers and lenders, current and potential liquidity providers, and insufficient support from government policies and regulations. Besides fostering a credit culture to deepen local debt markets, the issue of critical size can be addressed through an integrated regional market for local currency bonds that provides greater scale, efficiency, and access. With rapid economic growth in Asia, a key challenge is to generate financial assets that can provide the underlying collateral for expanding fixed-income markets, and hence domestic and regional investment opportunities. JEL Classification Numbers: E44; F36; G18; H63; O16.

The authors thank Phil Gharghori for providing some of the data used in our regressions, Thang Do for technical assistance, and an anonymous referee for helpful comments. Hodgson acknowledges financial support from the Australian Research Council (LG A00104218).

The effect of shoot pruning on leaf phenology, stem wood anatomy and sap flow was investigated on Senna spectabilis (DC.) Irwin and Barneby in Machakos, Kenya. Unpruned trees (single stem) were compared to hedges (two to four stems), pruned 4 times a year during two rainy seasons (April-June, 1997 and November, 1997-January, 1998) separated by a dry season (July-October 1997). Trees attained peak leaf area of 55 m 2 plant-1 during the rainy seasons, and shed all their leaves naturally during the dry season. Maximum hedge leaf area was 4 m 2 plant-1 between pruning events and 5.2 m 2 plant-1 during the dry season. Pruning induced multiple stems and narrow xylem vessels with low hydraulic conductivity. Average cross sectional area of conducting wood per plant was at least 1.8 times greater in trees than in hedges. Xylem lumen diameter at 5 mm depth below the cambium was significantly (P \ 0.001) larger in trees (53.6 ± 6.21 lm) than that in hedges (36.2 ± 8.21 lm). Maximum sap flow occurred in the wet season for trees (4800 g d-1 plant-1) and in the dry season for hedges (1400 g d-1 plant-1). Wet season pruning suppressed crown expansion and modified the natural phenology of senna, reducing transpiration rate and therefore soil water depletion, causing crowns to grow. This enhanced the ecological combining ability of senna managed as hedges with annual crops.

The financial theory (Modigliani & Miller, 1958) presents risk management as a matter without importance in companies, given that the shareholders themselves managed their hedges, diversifying their portfolios. However, subsequent studies dispute said premise and present evidence that business financial hedging improves performance and increases the value of the same (Ahmed, Azevedo, & Guney, 2014; Allayannis & Weston, 2001; Kapitsinas, 2008). The efficient market risk management is supported in the financial derivatives and demands strategic and efficient administrators in hedges that add value, especially in the face of clashes and macroeconomic and financial imbalances. The empirical evidence analyzes the behavior of the Q-Tobin as an indicator of the effect of the hedge strategies for the exchange rate associated with the market value. The aim of this work is to find evidence in Colombia on the effect of the use of derivatives in the market value of the company. Its added value lies in the analysis that is done by economic sectors, identified by ISIC codes and grouped into five (5) macro sectors (Agriculture and livestock, Commercial, Industrial or Manufacture, Services, and Construction). The methodology used includes the estimation of several regression models in data panels, using a Pooled regression model with fixed and random effect estimators through the maximum likelihood estimator. In general, a statistical and financially significant premium for hedges was found for companies exposed to exchange rate risks that use derivatives of a 6.3% average on the market value. Additionally, mixed results were found in relation to the variables analyzed in the model.

Aujourd'hui,les principales études surl ebois mortse sontaccordées àreconnaître quel ebois mortestu ne composantee ssentielle pourl ac onservation del ad iversitée tle fonctionnement del 'écosystème forestier (Vallauri etal.,2003 ;Dodelin etal.,2004;Schuck etal .,2004). Audelàd es études réalisées surl es forêts,en l'étatactuel des connaissances,il n'existep as beaucoupd'études spécifiques conduites dans d'autres écosystèmes semi-naturels tels quel es systèmes agro-forestiers (bocage,pré-verger,joualle (1) ,etc.). Enp articulier,les haies,les bosquets etles arbres épars sontt rois élémentsf ondamentaux des systèmes agro-forestiers etils rentrent dans lavastecatégorie des "arbres hors forêt"définis parl aF AO (2001) comme les « arbres présentss urdes terresn 'appartenantpasàlac atégorie des forêtse tdes autresterresboisées ». Cettecatégorie comprend:les arbresp résentss urdes terresayantlescaractéristiques def orêts mais dontlasuperficie estinférieure à0,5h a(bosquet),les arbres dans les rideaux-abris etles ripisylves dem oins de20 mdel arge etles arbres disséminés (arbres épars) dans des pâturages permanents ( Bellefontaine etal.,2001).

Verbenaceae; pentacyclic triterpenoids; 22fl-acetoxy-3,25-epoxy-38-hydroxy-12-ursen-28-oic acid; 3,25-epoxy-3a-hydroxy-22fl (2-methyl-2Z-butenoyloxy)-12-oleanen-28-oic acid. Abstract--Seven pentacyclic triterpeonoids, camarinic acid, camaric acid, oleanolic acid, pomolic acid, lantanolic acid, lantanilic acid and lantic acid, have been isolated from the aerial parts of Lantana camara. The two new constituents, camarinic acid and camaric acid, have been characterized as 22/~-acetoxy-3,25-epoxy-3~-hydroxy-12-ursen-28-oic acid and 3,25-epoxy-3~-hydroxy-22fl(2-methyl-2Z-butenoyloxy)-12-oleanen-28-oic acid, respectively. The structures of the new acids and lantanilic acid have been elucidated through extensive 1D and 2D NMR studies (COSY-45, NOESY, J-resolved, hetero-COSY), while those of the remainder rest on comparisons of their spectral data with the values reported in the literature.

Complementarity in the distribution of tree and crop root systems is important to minimise competition for resources whilst maximising resource use in agroforestry systems. A field study was conducted on a kaolinitic Oxisol in the sub-humid highlands of western Kenya to compare the distribution and dynamics of root length and biomass of a 3-year-old Grevillea robusta A. Cunn. ex R. Br. (grevillea) tree row and a 3-year-old Senna spectabilis DC. (senna) hedgerow grown with Zea mays L. (maize). Tree roots were sampled to a 300 cm depth and 525 cm distance from the tree rows, both before and after maize cropping. Maize roots were sampled at two distances from the tree rows (75–150 cm and 450–525 cm) to a maximum depth of 180 cm, at three developmental stages. The mean root length density (Lrv) of the trees in the upper 15 cm was 0.55 cm cm−3 for grevillea and 1.44 cm cm−3 for senna, at the start of the cropping season. The Lrv of senna decreased at every depth during the cropping season, whereas the Lrv of grevillea only decreased in the crop rooting zone. The fine root length of the trees decreased by about 35% for grevillea and 65% for senna, because of maize competition, manual weeding, seasonal senescence or pruning regime (senna). At anthesis, the Lrv of maize in the upper 15 cm was between 0.8 and 1.5 cm cm−3. Maize root length decreased with greater proximity to the tree rows, potentially reducing its ability to compete for soil resources. However, the specific root length (m g−1) of maize was about twice that of the trees, so may have had a competitive uptake advantage even when tree root length was greater. Differences in maize fine root length and biomass suggest that competition for soil resources and hence fine root length may have been more important for maize grown with senna than grevillea.

This article proposes a bivariate markov switching dynamic conditional correlation model for estimating the optimal hedge ratio between spot and futures contracts. It considers the cointegration between series and allows to capture the leverage e¤ect in return equation. The model is applied using daily data of future and spot prices of Bovespa Index and R$/US$ exchange rate. The results in terms of variance reduction and utility show that the bivariate markov switching model outperforms the strategies based ordinary least squares and error correction models.

The paper makes an assessment of the progress made in developing local debt markets in emerging Asia. Market development has been limited by hurdles confronting borrowers and lenders, current and potential liquidity providers, and insufficient support from government policies and regulations. Besides fostering a credit culture to deepen local debt markets, the issue of critical size can be addressed through an integrated regional market for local currency bonds that provides greater scale, efficiency, and access. With rapid economic growth in Asia, a key challenge is to generate financial assets that can provide the underlying collateral for expanding fixed-income markets, and hence domestic and regional investment opportunities. JEL Classification Numbers: E44; F36; G18; H63; O16.

During the last 50 years, mechanisation of the rural environment, and, more recently, the Common Agricultural Policy have led to profound changes in agrarian landscapes throughout Europe, and in particular in the rich and diverse Mediterranean landscapes (Meeus et al., 1990). In the northeast of the Iberian Peninsula, a small area of hedgerow landscape persists as a remnant of what was once an important centre for livestock production. This paper presents the results of a study carried out in this area with the aim of clarifying the relationship between the structural change of this hedgerow landscape and the evolution of farming practices developed by its owners and workers. It also considers these farmers' perceptions of their pastures, of their farms and of the region. Up to 61 statistically significant relationships were found between the physical landscape characteristic variables and the socioeconomical variables. Results depict a hedgerow landscape determined by the combination of two management models. Here, and contrary to conclusions reported in similar literature, traditional pasture activity leads to a weaker hedgerow network than a farming model based on crop cultivation. Management guidance required to move from the current situation towards a hedgerow landscape supporting both biodiversity and agrarian activity is discussed.

This Staff Discussion Note represents the views of the authors and does not necessarily represent IMF views or IMF policy. The views expressed herein should be attributed to the authors and not to the IMF, its Executive Board, or its management. Staff Discussion Notes are published to elicit comments and to further debate.

Although the importance of hedgerows for sustainable agriculture and conservation of rural biodiversity is increasingly being recognized, obtaining insight into the spatial and temporal dynamics of hedgerow networks remains an important challenge for landscape ecologists, with the key factors driving changes in rural landscape structure especially deserving further attention. The present study analyses the long-term history of a hedgerow network landscape in Flanders, Belgium. A detailed reconstruction of the hedgerow network is made at five points in time, starting at the end of the 18th century until present, for 367 distinct 400 m × 400 m samples. Whilst hedgerows were mainly concentrated around historical village centres and within valleys at the end of 18th century, the network expanded progressively during the 19th century. In the 20th century, the hedgerow network degraded strongly, with hedgerow density and connectivity declining and mesh-size heterogeneity and network fragmentation increasing, although the network recovered slightly during the 1990s. Different trajectories of change in hedgerow network structure were observed depending on landscape position, with both topography and village proximity significantly affecting hedgerow network dynamics. The present network structure was mainly governed by land use, with highly developed networks being predominantly associated with pasture. Three main conclusions arise from the results of this study. First, the role of land use and landscape position as basic factors steering hedgerow network dynamics at the landscape scale is demonstrated. Second, the longterm perspective of the study enabled insight into the poorly known expansion phase of hedgerow networks, linked mainly with the development of small-scale labour-intensive agriculture. Finally, the findings confirm the large-scale degradation of linear semi-natural habitats in European agricultural landscapes during most of the 20th century, and indicate that a proactive rural policy can halt and even reverse this process.

Aujourd'hui,les principales études surl ebois mortse sontaccordées àreconnaître quel ebois mortestu ne composantee ssentielle pourl ac onservation del ad iversitée tle fonctionnement del 'écosystème forestier (Vallauri etal.,2003 ;Dodelin etal.,2004;Schuck etal .,2004). Audelàd es études réalisées surl es forêts,en l'étatactuel des connaissances,il n'existep as beaucoupd'études spécifiques conduites dans d'autres écosystèmes semi-naturels tels quel es systèmes agro-forestiers (bocage,pré-verger,joualle (1) ,etc.). Enp articulier,les haies,les bosquets etles arbres épars sontt rois élémentsf ondamentaux des systèmes agro-forestiers etils rentrent dans lavastecatégorie des "arbres hors forêt"définis parl aF AO (2001) comme les « arbres présentss urdes terresn 'appartenantpasàlac atégorie des forêtse tdes autresterresboisées ». Cettecatégorie comprend:les arbresp résentss urdes terresayantlescaractéristiques def orêts mais dontlasuperficie estinférieure à0,5h a(bosquet),les arbres dans les rideaux-abris etles ripisylves dem oins de20 mdel arge etles arbres disséminés (arbres épars) dans des pâturages permanents ( Bellefontaine etal.,2001).