This paper estimates the effect of FDI and remittances on economic growth in South Asia using an aggregate production function model. Time series data from 1976 to 2010 for India, Pakistan, Bangladesh and Sri Lanka is used to create the panel data. Time series properties of the panel data are...

This study tests for the sustainability of current account deficits for a sample of twenty six African countries. For this purpose, a new test procedure advocated by Pedroni is employed which allows one to test for cointegration between exports and imports in heterogeneous panel datasets. This...

The recent financial crises in several emerging market economies only confirm that a satisfactory explanation of financial and currency crises remain elusive. The first-generation crisis model pioneered by Krugman is no longer compelling as many of the actual crises seem to lack the crucial...

This paper investigates the behaviour, from October 1999 to May 2001, of spreads on sovereign debt issuance from 15 countries located in Asia, Latin America and Eastern Europe using a homogeneous secondary market database. The research integrates standard Principal Components Analysis procedures...

The paper aims at establishing whether the fluctuations of money help predict future fluctuations of income, that are not already predictable on the basis of fluctuations of income itself or other readily observable variables. For this purpose vector autoregression (VAR) modelling is used to...

This study develops an empirical method to test the effect of North American Free Trade Agreement (NAFTA ) on U.S. welfare. Models developed so far under an ex-ante approach are mostly based on utility function assumptions, which are hard to meet. These models also have stringent data...

The interest rate parity relationship is analysed with and without the inclusion of a time-varying risk premium. A panel data set of returns on Eurocurrency deposits is used to test for a panel unit root as well as for common movements in the risk premia across deposits denominated in different...

This article focuses on the Turkish financial crisis of 2001 and aims at devising an early warning system based on a probit model incorporating six monthly macroeconomic variables spanning the period between 1991 and 2001. Regression results indicate that consumer price index, Turkish Lira/US...

This paper examines the experience of most Central and Southeastern European countries with respect to the exchange rate regimes they adopted. It first analyzes the exchange rate arrangements of these countries at the beginning of the transition process and how they relate to their initial...

This paper studies the effect of currency depreciation on the output level in four Latin American countries. An empirical model that includes monetary, fiscal and exchange rate variables is developed. Two versions of this model, one with real exchange rate and another with nominal exchange rate...