Foreign direct investment is often regarded by countries with balance of payments problems as a potential source of salvation. The consequences of a rise in foreign direct investment are analysed within a two-country, four-product, six-asset small macro model and is shown to have two distinct...

This paper develops an open economy intertemporal optimising model that seeks to analyse the effect of bill financed government expenditure on several key financial markets. The main results suggest that an increase in bill financed government expenditure leads to a rise in net international...

This paper investigates spillover effects across stock and foreign exchange markets in France, Germany, UK and Japan by using daily data ant the GARCH approach. We propose an alternative procedure to investigate volatility transmission between stock and foreign exchange markets using both...

In the light of the increasingly important role played by emerging stock markets in international investment strategies, this paper contributes to the literature by analyzing the important issues of volatility and volatility spill-overs in the African markets. Using an EGARCH model which...