Wealth effects in emerging market economies

Wealth effects in emerging market economies

Article history: Received 24 June 2010 Received in revised form 17 January 2012 Accepted 19 January 2012 Available online 27 January 2012 We build a panel of 14 emerging economies to estimate the magnitude of wealth effects on consumption. Usingmodern econometric techniques and quarterly data,we show that: (i)wealth effects are statistically significant and relatively large inmagnitude; (ii) st...

Banking Efficiency in Emerging Market Economies

This working paper is produced for discussion purpose only. These working papers are expected to be published in due course, in revised form, and should not be quoted or cited without the author's written permission. I am grateful without implication to Tiantian Zhang (PhD candidate Cardiff University) and Momna Saeed (SBP) for able research assistance in the production of this paper. 2 1. Intr...

Domestic original sin in emerging market economies

This paper explains why domestic debt composition in some emerging economies is risky. To this end, it carries out a systematic analysis of the determinants of the socalled domestic original sin, which refers to the inability of emerging economies to borrow domestically in local currency, at long maturities and fixed interest rates. The paper builds on a large dataset compiled by the authors fr...

FDI and Local Financial Market Development in Oil Exporting and Importing Emerging Economies: VAR Panel Approach

The literature on Foreign Direct Investment (FDI) has advanced several explanations of the links between financial market developments and FDI inflows across developing as well as developed countries. Empirical literature show that financial market development reduces informational frictions and improves resource allocation more efficiently. Also, financial systems are important for both produc...

Monetary Models and Inflation Targeting in Emerging Market Economies