This paper investigates the existence of possible causal linkages between the internal and external imbalances of the Greek economy, over the period 1960-2007, as well as the directions of the detected causal effects. Actually, it tests empirically the validity and rationale of the “twin...

The main objective of this paper is to examine the sustainability of the Turkish current account deficit after 2008 crisis while considering the structural changes caused by 1994 and 2001 crises. This study is based on Husted’s (1992) intertemporal model and examines the long-run relation...

Since the early 1990s, there is an upsurge in foreign capital flows to developing economies, particularly into emerging markets. One view argues that capital inflows do help to increase efficiency, a better allocation of capital and to fill up the investment-saving gap. Adherents to that view...

This paper explores the linkages between the different stock markets in the Greater China region. Cointegration tests indicate that the three markets are not cointegrated. A vector-autoregressive multivariate conditional volatility model that accounts for asymmetric volatility effects is used to...

The Feldstein-Horioka Paradox is an empirical regularity that calls into question the validity of the assumption about perfect capital mobility. We study the savings-investment relationship in Mexico from 1950 to 2007 by means of a cointegration analysis that allows for structural breaks. The...

The purpose of the study is to explore the determinants of foreign institutional investments in India through the Autoregressive Distributed Lag (ARDL) bounds testing approach. Using quarterly time series data, the empirical analysis was carried out for the period from January 2004 to December...

In this paper we examine three types of nonlinearities, i.e., nonlinearity stemming from structural breaks, sign nonlinearity and size nonlinearity, for ten European countries and their importance to current account sustainability. For this purpose, we apply a battery of linear and nonlinear...

The current account deficits that reached the critical proportions together with the acceleration of the globalization process, have exited considerable interest among researchers and policy makers. To have a clear understanding of its role in macroeconomic outcomes, a lot of researches were...

Since the study of Feldstein/Horioka (1980), the high correlation between investment and saving rates is a controversial, but first of all often confirmed empirical evidence. In this paper, this correlation is investigated once again for the EU-countries in the time period from 1960 to 1997. In...

One of the most important open macroeconomic issues, during the current global economic recession, concerns the sustainability of persistent budget and trade deficits as well as possible interactions between them. These deficits are most crucial due to severe debt servicing costs, faced by...