Establishing cointegration and long-run convergence between the official and the black market exchange rates is a way of testing foreign exchange market efficiency. Earlier research employed the Engle-Granger or Johansen method to test for cointegration between the two rates. Since either method...

Due to foreign exchange controls in many developing countries, there is a black market for foreign exchange. Since the black market exchange rates are good proxies for the floating exchange rates, they provide relatively more support for the purchasing power parity theory (PPP). In this paper,...

The expert contributors focus on global imbalances and accompanying policy challenges, competitiveness and trade, the sustainability of current growth strategies, and banking and financial stability in the light of the global economic and financial crisis. They provide a multi-disciplinary...

This paper examines the volatility of capital flows following the liberalization of financial markets. Utilizing a panel data set of overlapping data, the paper focuses on the response of foreign direct investment, portfolio flows, and other debt flows to financial liberalization. The financial...

Purpose: The purpose of this paper is to show that in some industries the linear model may not reveal any significance link between exchange rate volatility and trade flows but once nonlinear adjustment of exchange rate volatility is introduced, the nonlinear model reveals significant link....

Purpose: The purpose of this paper is to assess and compare the symmetric and asymmetric effects of consumer sentiment on house prices in each state of the USA. This is the first study that uses state-level data. Design/methodology/approach: Both linear and nonlinear autoregressive distributed...

Purpose: The purpose is to assess the asymmetric effects of exchange rate changes on the trade balance using data from African nations. Design/methodology/approach: The methodology is based on the most recent development in asymmetry cointegration and error-correction modeling. Findings: While...