We develop a generalised impulse response function (GIRF) approach to explore the different impacts of aggregate and sectoral shocks within a VAR-GARCH-M model. Using the outout of our GIRF analysis, we explore the behaviour of three European countries(Gremany, Spain and the UK). We analyse the...

Starting with the Treaty of Rome (1957), the European Union adopted common policies to promote “harmonious economic development and balanced expansion.” The paper investigates how successful such policies were, by examining whether there was economic convergence of the real per capita GDP in...

In many countries the difference in labor market performance for skilled and unskilled workers has increased over the past decades. While an extended literature exists on the employment effects of trade, less is known about the effects of factor mobility. Based on the “labor market flow...

Competitiveness constitutes a primary goal of each country for the accomplishment of its economic and technological targets. The evaluation of competitiveness is considered as a major problem that has risen during the last years due to the globalization and the rapid changes in the...

Cluster analysis methods allow for a comparative study of countries through basic macroeconomic indicator fluctuations. Statistical distances between 15 EU countries are first calculated for various moving time windows. The decrease in time of the mean statistical distance is observed through...

This paper provides evidence of integration in European equity and bond markets over the period January 2, 1997 to October 1, 2006. Our focus is to examine time-varying correlation dynamics in Euro-area, Central European (CE) and Balkan financial markets, modifying the asymmetric generalized...

Due to growing skepticism over the globalisation process across countries, economists in the emerging market economies (EMEs) are anxious to know how the integration of financial markets was associated with the recent global crisis and whether there could be some key lessons for the broader...

The paper explores the issue of integration in the Eurocurrency market. In particular, by using information from the short end of the Eurodollar, Euromark and the Eurosterling term structures we focus on their multivariate correlation structure decomposing it into common (systemic) and...

In order to answer the pertinent question why developing countries are showing penchant for foreign capital over the last two decades in spite of its detrimental effects as revealed from the conventional two-sector mobile capital version of Harris–Todaro (HT) model in the presence of...

This paper explains why a developing country may experience a jobless growth in the organised sectors during liberalised regime within the framework of a three-sector mobile capital version of Harris-Todaro type general equilibrium model describing rural-urban migration with agricultural dualism...