Recently, the European Union [EU] expanded to include ten Central and Eastern European countries [CEEC]. The United Kingdom [UK] is gradually opening its labour markets to countries that have joined the EU. This paper examines some of the causes and consequences of growing immigration from CEEC...

We study the effects of preferential trade agreements (PTA) in a model where income matters for consumption patterns. We develop a three-country Ricardian trade model in which goods are ranked according to priority and where economies differ in their income level. The poorest (richest) country...

An examination of the linkages between the emerging stock markets in Warsaw and Budapest and the established markets in Frankfurt and the U.S. By using a four-variable asymmetric GARCH-BEKK model, we find evidence of return and volatility spillovers from the developed to the emerging markets....

Understanding what determines Foreign Direct Investment (FDI) inflows remains a primary concern of economists and policy makers; yet, the uncertainty surrounding FDI theories and empirical approaches has created much ambiguity regarding the determinants of FDI. This paper undertakes an...

Ten years after its introduction, the Euro is in an existential crisis. The crisis is the outcome of economic policies that have aimed at labour market flexibility and financial integration. The paper argues, firstly, that the aggregate demand regime in the Euro area is wage led. While an...

Logit models are non-linear in their explanatory variables. Derivatives with respect to the explanatory variables therefore only approximate the response to discrete changes in regressor values, yet have gained some support within the literature. This note investigates such an approximation...

This paper studies a dynamic error correction model (ECM) highlighting the consequences of regime changes and of credibility on the performance of real exchange rates during stabilization. The analysis shows that the structural parameters of the ECM, from which an equilibrium real exchange rate...

In many countries, firms are encouraged to export as a means of contributing to economic growth. The successes of small and medium-sized enterprises (SMEs) in industrialized countries has led to the increasing recognition of their role in transition economies - including exports development. The...

We study the effects of hub and spoke liberalization in a model where income matters for consumption patterns. We use a three-country Ricardian trade model in which goods are ranked according to priority and where economies differ in their income level. The poorest (richest) country has a...

The aim of this paper is to estimate the real demand for money in three South Asian countries - Bangladesh, India and Pakistan - allowing for the possible effect of foreign exchange inflows (which have tended to increase in recent years). As identifying the stability of estimated elasticities is...