Capital goods industries, for example, nuclear reactors, steam and vapour turbines, air or gas compressors, filtering or purifying machinery and apparatus are intrinsically heterogeneous in terms of vintages and the level of technological knowledge embodied in their products. Countries decide to...

International pressure to revalue China’s currency stems in part from the expectation that rapid economic growth should be associated with a real exchange rate appreciation. This hinges on the Balassa-Samuelson hypothesis under which economic growth is due to relative tradable productivity...

Some of the findings from new trade and economic geography theory are quite critical concerning the South-South agreements. This study contributes to the discussion by means of different empirical analyses of a representative set of South-South integrations. The income developments of its member...

Agents engage in a process of forecasting the exchange rate based on observations of macroeconomic fundamentals. Deviations in the realized exchange rate from agents’ forecasts determine fluctuations in components of the current and financial accounts of the balance of payments in a sample of...

There are many papers written on how price and wage rigidity can cause monetary policy to generate real effects on the economy. In those that incorporate open-economy considerations, monetary changes in one country also has an impact on other economies. In this paper, an attempt is made to add...

The paper analyses the process of real convergence of the New Member States of the European Union. Its importance is underlined in connection with a successful catching-up and a special attention is paid to the countries involved in the fifth European enlargement, with the exception of Cyprus...

This study identifies income convergence in Europe over 1960 to 2012. The Great Recession since 2008 reversed the GDP per capita convergence in the EU-15, but the extransition countries have mostly continued to catch up. We found this by analysing the Sigma convergence of GDP per capita in the...

Most empirical applications of the OCA approach based on asymmetric shocks have failed to account for the credibility aspects that play an important role in deciding to join the EMU from the EMS or the EMS-BIS. In this paper, we tackle this problem by relying on a regime switching approach that...

The model developed in this paper expands upon the traditional neoclassical exogenous growth model by facilitating a long-run growth analysis of the impact of openness to trade within a multi-country framework. Openness affects growth by impacting the extent of knowledge spillovers from abroad....

In this paper, we assess whether trade among member countries of a regional trade agreement (intra-regional trade) contributes more to output growth than trade with nonmember countries (extra-regional trade). We use Granger causality tests to evaluate the trade-growth relationship in 13...