Purpose – In all existing theoretical papers on causality it is assumed that the lag length is known a priori. However, in applied research the lag length has to be selected before testing for causality. The purpose of this paper is to suggest that in investigating the effectiveness of various...

Estimates a three-equation model to test various economic hypotheses regarding the relationship between unemployment rate and defence spending in 18 OECD countries during the period 1962-1988. Reveals that the relationship which exists between unemployment rate and defence spending is not...

Focuses on Roscher's generalities in the financial realm. Roscher postulated a secular decline in interest rates and an evolution of credit towards increasingly productive applications. Although Roscher's theories were plausible, questions whether he got his causes and effects right. If not, of...

Outlines the difference between the attitude of Menger and that of Böhm-Bawerk to Roscher's economic system. Argues that this difference symbolizes the difference in their theoretical contributions in the field of interest theory. Contrasts Menger's use of theoretic assumption with...

Investigates the hypothesis of increased financial integration within the European Union (EU) based on an examination of covered and nominal interest rate differentials between March 1979 and August 1992 using cointegration and time-varying parameter econometric techniques. Discovers evidence of...

The well-known modes of raising and mobilizing venture capital in Islam known as mudarabah and musharakah (m&m) in Islamic economics are critically examined. In the form as m&m presently exist, they are pointed out to be pre-Islamic financing instruments that came into usage in the Islamic...

Examines the causal relationship between interest rates, savings and income in the Chinese economy over the period 1952 to 1999, using the cointegration test and Bayesian vector autoregression (BVAR) for empirical testing. The empirical evidence from the cointegration test confirms that there is...

Purpose – This paper aims to examine how selected governance indicators impact on performance measures of outreach and profitability in microfinance institutions (MFIs). Design/methodology/approach – The paper adopts a quantitative approach based on both primary and secondary data from...