The prime objective of the study is to identify the long-run and short-run relationship between Indian stock price viz., BSE SENSEX (hereafter named as BSE) and gold price (GOLD) in India. The daily closing price data were collected for the period of ten years ranging from 1st April 2004 to 31st March 2014 with 2490 observations. The study employed two models: Model one us...

This paper aims at assessing how offenders allocate their effort amongst several crime typologies. Specifically, complementary and substitution effects are tested amongst number of recorded crimes. Furthermore, the extent to which crime is detrimental for economic growth is also tested. The case study is Italy and the time span under analysis is from 1981:1 up to 2004:4. A Vector Autoregressive...

This study analyzes factors affecting the price of South Korea’s Certified Emission Reduction (CER) using statistical methods. CER refers to the transaction price for the amount of carbon emitted. Analysis of results found a co-integration relationship among the price of South Korea’s CER, oil price (WTI), and South Korea’s maximum electric power demand, which means that there is a long-term re...

The present study explores the impacts of foreign capital inflows in terms of external debt, foreign direct investment and worker’s remittances on domestic investment in Pakistan economy for the period of 1972-2007. Since the study utilizes the time series data of the sample period so augmented Dickey-Fuller unit root test has been employed to find out each of the time series variables to be st...

The study investigates whether the financial liberalization undertaken in India has resulted in integration of Indian markets with global markets. First, we investigate covered interest rate parity (CIP) between India and the US using 3 month interbank interest rates and 1 year swap rates. The results show little evidence of a long term equilibrium relationship between the domestic interest rat...

A small monthly macroeconometric model of the Canadian economy built around three cointegrating relationships linking financial and real variables is estimated over the 1975-2002 period. One of the cointegrating relationships allows the identification of a supply shock as the only shock affecting permanently the stock market and a demand shock leading to important transitory stock market overva...

The causation relationship between economic growth and military expenditures in developing countries has received growing focus in recent years. One of the arguments in this field is that military spending absorbs a significant proportion of the limited financial resources in LDCs. The present study examines the causal relation in two models: defense spending with total real economic growth and...

This study investigated the relationship between financial development and economic growth for Ireland for the period 1965-2007 using a vector error correction model (VECM). Questions were raised whether financial development causes economic growth or reversely taking into account the positive effect of industrial production index. Financial market development is estimated by the effect of cred...

This paper examines co-integration and the causal relationship between Foreign Direct Investment (FDI) and the economic output or Gross Domestic Product (GDP) in the both short and long run of Bangladesh, Pakistan and India over the period of 1972-2008. Three econometric models, viz. Augmented Dickey-Fuller (ADF) test, Engle-Granger two-step co-integration test, Vector error correction mechanis...

This quantitative research aims to analyze the long-run relationship and causality between economic development, tourism, other macroeconomic variables in context of Sao Tome Principe (STP). First, Augmented Dickey Fuller (ADF) Phillips Perron (PP) unit root test is applied, followed by Johansen cointegration Vector Error Correction Model (VECM). Gross domestic product (GDP), tourism receipts (...