Purpose – The purpose of this paper is to investigate the impact of a menu of country‐pair exchange rate regime combinations upon bilateral foreign direct investment (FDI) flows. Design/methodology/approach – The authors use panel data from 27 OECD and non‐OECD high income countries for...

Purpose – The purpose of this paper is to investigate the impact of a menu of country-pair exchange rate regime combinations upon bilateral foreign direct investment (FDI) flows. Design/methodology/approach – The authors use panel data from 27 OECD and non-OECD high income countries for the...

This paper investigates the long-run relationship between Iranian trade balance and the black market value of Iranian rial by employing cointegration technique. It is shown that in a oil producing country like Iran due to rent-seeking opportunities, depreciation of the rial in the black market...

Purpose – This study seeks to explore the nature of a data-generating process for four dollar exchange rates. Design/methodology/approach – Using a discrete parametric modeling approach, an efficient test statistic was computed for nonlinearity in terms of variance of the residuals of the...

Purpose – The purpose of this study is to examine real exchange rate misalignment and economic growth in Malaysia. Design/methodology/approach – The result of the autoregressive distributed lag (ARDL) approach and the generalized forecast error variance decomposition. Findings – The result...

The analysis of the processes determining unemployment in an open economy has been considerably advanced by the work of Layard, Nickell and Jackman in their book Unemployment: Macroeconomic Performance and the Labour Market. Reviews their contribution. They have developed an analysis based on...

Considers the treatment of openness and imperfect competition in the influential analysis of Layard, Nickell and Jackman's (LNJ's) Unemployment: Macroeconomic Performance and the Labour Market. Clarifies and completes LNJ's treatment of openness through the provision of explicit analytical...

Purpose – In what seems as an infinitely ongoing debate regarding the purchasing power parity (PPP) theory, this paper seeks to question the strength of the scientific “evidence” put forward by the PPP revisionists Design/methodology/approach – In this paper, the validity of the PPP...

Purpose – Since the last review article by McKenzie, the literature has experienced a surge in the number of empirical articles. These new contributions, coupled with those that were overlooked by McKenzie, set the stage for this review. Many of the recent studies have been empirical in nature...

Tests for long‐run macroeconomic convergence among European Union (EU) countries according to the various exchange rate regimes that have prevailed over the last 40 years. Applying a recently developed test to the monthly index of industrial production data, output convergence is confirmed or...