This study empirically investigates the role of trade policy along with physical capital, human capital and labour force on economic growth in an isolated economy (i.e. North Cyprus). We use a sample of quarterly and seasonally adjusted data covering the period 1978Q1-2002Q4 to evaluate whether...

Apart from exchange rate objectives which have resulted in reserve accumulation as a side effect, Asian countries have chosen explicitly to build up reserves for precautionary motives. This paper explores the issue of optimal precautionary demand for reserves by a central bank within a context...

In the increasingly globalized financial markets the impact of exchange rates fluctuations are progressively the center of focus for investors and policy makers. The main objective of this paper is to empirically investigate the causal link between the stock market and the exchange rates in the...

This paper defines mathematically different forms for the efficient market hypothesis and tests this hypothesis for the equity market in Japan with respect to the interest rate, industrial production, money supply, consumer price index and the real effective exchange rate during the period...

This study provides current, new empirical evidence on the impact of the U.S. federal budget deficit on the nominal interest rate yield on nominal ten-year U.S. Treasury notes. The study is couched within an open loanable funds model that includes an ex ante real short term real interest rate...

This study uses causality tests to determine the direction of causality between U.S. federal budget deficits and ex ante real long-term interest rates. For the 1971-1991 period, it is found that the ex ante real long-term interest rate may cause the structural budget deficit.

This paper is concerned with the question as to whether or not the deficit criteria of the Maastricht Treaty are a necessary precondition for entry into the monetary union. More specifically, the discussion is reduced to whether or not adhering to the timetable is more important than the strict...

Recent research using time series cointegration techniques has suggested that fi scal policy in the EU-15 countries may have been on unsustainable path during 1970-2003. However, the time series techniques employed are know to have low power in small samples. The results from employing panel...

This paper examines the relationship between external debt and economic growth in Fiji during a 30-year period (1970-2005). Applying the bound testing approach of Pesaran et al., (2001), it is found that the long-run relationship runs from external debt to economic growth. Whilst both external...

This paper empirically investigates the causal relationship between financial development and economic growth in Jamaica covering the period 1980-2012. The empirical results suggest there is bi-directional causality between financial development and economic growth in Jamaica. This empirical...