This paper employs a reduced form structuralist model of inflation in the OECD over the period 1985--2009 to find out whether domestic prices respond symmetrically to rising and falling import prices. We find that the response is asymmetrical: domestic prices rise when import prices rise but...

: Whether international trade has any effect on income convergence across countries remains an open question. The present paper addresses this question by employing a novel approach and a new model over the period 1960-2003. By splitting the sample into two subperiods, it is found that the...

In this paper, we analyze symmetric and asymmetric causal relationship between energy consumption and economic growth in time and frequency domains, using annual data covering the period of 1965-2012. In general, our results tend to suggest that energy consumption causes growth, especially the...

This study questions whether the long-run purchasing power parity (PPP) holds in the transition economies (Bulgaria, the Czech Republic, Hungary, Latvia, Lithuania, Poland, Romanian, and Russia) for the period from January 1995 to October 2011. We employ the Sequential Panel Selection Method...

Purchasing power parity hypothesis is viewed as one of the central doctrines in international economics. The hypothesis states an equilibrium condition equating the nominal exchange rate between two national currencies with the relative price of an identical basket of traded goods in each...

The purpose of this study is to examine whether GDP shocks are transitory or permanent in African countries. The Sequential Panel Selection Method (SPSM) using Panel KSS test with a Fourier function—which is good enough to control for structural breaks and nonlinearity as well as cross-section...

This paper examines the catching-up (stochastic convergence in real per capita income) hypothesis for 52 African countries with respect to the USA. over the 1969-2011 period, using a highly flexible stationarity test. The empirical results show (i) that all African countries experienced at least...

The Feldstein-Horioka (FH) puzzle, that is the strong correlation between saving and investment in a world where obstacles to capital mobility are limited, has been studied extensively since it was exposed in 1980. Even though the theoretical and empirical literature has examined many of its...

There are vast literature about the relationship between financial development and economic growth. In most studies, the positive relation is approved while in few advocate that there is no relation. The positive relation may be from financial development to growth or vice versa or two ways. In...

The implications of the efficient market hypothesis are important in assessing public policy issues. This paper attempts to examine the weak-form efficiency of the DAX stock market. Five randomly chosen companies and different sub samples are used to confirm the results. The results show that...