This paper investigates income convergence in 20 developing countries, including Algeria, Benin, Burkina Faso, Cameroon, Chad, Cote d'Ivoire, Gabon, Gambia, Indonesia, Malaysia, Mali, Morocco, Mozambique, Niger, Nigeria, Pakistan, Senegal, Togo, Turkey, and Uganda. This paper applies a battery...

This study investigates the Portfolio Balance Model (PBM) of exchange rate behavior in the context of the Mexican Peso and the US dollar for the period from 1985Q4 to 2005Q3. Tests of the reduced-form exchange rate equation and perfect substitution of domestic and foreign bonds are conducted...