For spatial data with a sufficiently long time dimension, the concept of global cointegration has been recently included in the econometrics research agenda. Global cointegration arises when non-stationary time series are cointegrated both within and between spatial units. In this paper, we...

This paper provides a new perspective on the exchange rate disconnect puzzle by referring to the expectations building mechanism in foreign exchange markets. Therefore, we analyze the role of expectations regarding macroeconomic fundamentals for expected exchange rate changes. In doing so, we...

The present paper studies the modelling of inter-regional trade flows in the newly developed general equilibrium model of European Commission, Rhomolo. In contrast to international trade, usually, trade of goods and services between regions is not recorded statistically. As a result, no...

This article describes the development of international trade blocs world wide from the 1950s till 2010. We updated the data on international trade flows and introduced a new trade bloc variable based on the intramax hierarchical clustering technique, which defines trade blocs on actual trade...

The Gravity Model is the workhorse for empirical studies in International Economies and it is commonly used in explaining the trade flow between countries. Recently, several studies have showed the importance of taking into account the spatial effect. Spatial Econometric techniques meet this...