The relationship between financial development and economic growth is an important issue for both developed and developing countries through which the extent of economic growth and the sophistication of the country’s financial markets are linked. The research studies the existence of a relationship between financial development and economic growth using a sample of BRICS and G-7 countries for the period of 1996 to 2013. The study objective was to conduct a comparative analysis of the relationship between financial development and economic growth within BRICS and G-7 countries. A panel data analysis was used to analyse secondary data from 5 BRICS countries (Brazil. Russia, India, China and South Africa) and G-7 countries (Canada, France, Germany, Great Britain, Italy, Japan and United States).Variables used include, economic growth, stock market capitalisation, total investment growth, interest rates and population growth. This study found that real interest rates and total investment is positively related to economic growth in both BRICS and G-7; while other variables such as stock market size, do play a significant role in explaining economic growth in both BRICS and G-7 countries and insignificant variables such as population growth. Findings of this study suggests there are no major difference between developed and developing countries with regards to their financial development and economic growth. This study may assist BRICS and G-7 countries to improve their economic growth structure and financial development systems over time.

The relationship between financial development and economic growth is an important issue for both developed and developing countries through which the extent of economic growth and the sophistication of the country’s financial markets are linked. The research studies the existence of a relationship between financial development and economic growth using a sample of BRICS and G-7 countries for the period of 1996 to 2013. The study objective was to conduct a comparative analysis of the relationship between financial development and economic growth within BRICS and G-7 countries. A panel data analysis was used to analyse secondary data from 5 BRICS countries (Brazil. Russia, India, China and South Africa) and G-7 countries (Canada, France, Germany, Great Britain, Italy, Japan and United States).Variables used include, economic growth, stock market capitalisation, total investment growth, interest rates and population growth. This study found that real interest rates and total investment is positively related to economic growth in both BRICS and G-7; while other variables such as stock market size, do play a significant role in explaining economic growth in both BRICS and G-7 countries and insignificant variables such as population growth. Findings of this study suggests there are no major difference between developed and developing countries with regards to their financial development and economic growth. This study may assist BRICS and G-7 countries to improve their economic growth structure and financial development systems over time.

The introduction of the single currency (Euro) in Europe has been referred to as the ‘world’s largest economic experiment’ and has led to major research on the effects of the adoption of a common currency on economic activity with considerable emphasis on its effect on trade flows at the macroeconomic level. However, the investigation of the euro effect on individual sectors has received very little attention and this provides the motivation for the research. The main contribution of this thesis is to the sectoral analysis of the single currency’s effect on bi-lateral trade flows, specifically the effects on the transport equipment manufacturing sector. In order to achieve this, a comparison of the different estimation methods applied in the gravity model literature will be employed to investigate this effect and to identify the factors affecting trade in this sector. This study uses a panel data set which comprises the most recent information on bilateral trade for the EU15 countries from 1990 to 2008. This research aims to build on the results obtained in previous studies by employing a more refined empirical methodology and associated tests. The purpose of the tests is to ensure that the euro’s effect on trade is isolated from the other pro- trade policies of the European integration processes, particularly the introduction of the Single Market. The desirable feature of this approach is that, while other studies limit their attention to a particular issue (zero trade flow, time trend, sectoral analysis, cross-correlation, etc.), very few, if any, apply a selection of techniques. Overall, the results demonstrate that the single currency’s effect on trade in this sector is limited with only the fixed effects formulation with year dummy variables showing a significant positive effect of the euro. An obvious policy implication for countries looking to adopt a single currency is that they should be cautious regarding the potential for growth in intra-bloc trade in a particular sector, although they will benefit from the on-going process of integration.

The aim of our study is to investigate the effect of immigrants on wages for natives with divergent skill level within one country. Skill level is measured as education level and the purpose is to focus on the level where it according to us is a lack in research, namely the effect on high skilled native-born worker wages. Further, our contribution to the already existing studies may be considered to be a complement. Using panel data, collected from the time period 2000-2008 for the 290 municipalities in Sweden to get regional variation, we investigate and interpret the estimated outcome of how wages for native-born workers in the Swedish labor market respond to immigration into Sweden. The main findings, when controlling for age, unemployment, and differences between year and municipalities in this study are on the short run, in line with the theory. The closer to a substitute the native-born and foreign-born workers are, the greater are the adverse effect on the wage for native-born, given that we assume immigrants as low skilled. The effect on wage for high skilled native workers in short run, when assuming immigrants and natives as complement, is positive, i.e. the wage for high skilled natives increases as the share of immigrants increases. The effect on high skilled native-born wages is positive even in mid-long run and adverse for the low and medium skilled native-workers. This is not an expected outcome since we according to theory predict the wage to be unaffected in mid-long run. This may be the result of errors in the assumption that immigrants are low skilled, or that five years is a too short time to see the expected effect in the long run; the Swedish labor market may need more time to adjust to what we predict the outcome to be.

FDI inflow to developing countries has shown a drastic increase in the past few decades. Accordingly, many policy makers and academics are concerned about policies that attract FDI inflows to enhance economic growth from the positive spillover effects of FDI. Hence this study examines the general impact of FDI on the economic growth of 56 developing countries for the period 1985-2014. In order to analyze the growth effect of FDI into different macroeconomic situations, the sample countries are grouped into 24 low-income developing countries and 32 upper middle-income countries. The overall panel data analysis based on endogenous growth theory supported the positive growth effect of FDI for the pooled 56 countries and upper middle- income countries. However the growth effect of FDI for low-income countries tend to be statistically significant but negative. Moreover, to investigate the absorptive capacity of the host country an interactive term of FDI and human capital is included to estimate the general model. The regression results from the interactive term denote that the growth effect of FDI is dependent on the level of human capital in the host country. Hence a minimum level of human capital is essential in order to maximize and absorb the positive growth effect of FDI.

This study suggests a two-step approach to identifying and interpreting regional convergence clubs in Europe. The first step involves identifying the number and composition of clubs using a space-time panel data model for annual income growth rates in conjunction with Bayesian model comparison methods. A second step uses a Bayesian space-time panel data model to assess how changes in the initial endowments of variables (that explain growth) impact regional income levels over time. These dynamic trajectories of changes in regional income levels over time allow us to draw inferences regarding the timing and magnitude of regional income responses to changes in the initial conditions for the clubs that have been identified in the first step. This is in contrast to conventional practice that involves setting the number of clubs ex ante, selecting the composition of the potential convergence clubs according to some a priori criterion (such as initial per capita income thresholds for example), and using cross-sectional growth regressions for estimation and interpretation purposes. (authors' abstract)

This paper concentrates on the central link between productivity and knowledge capital, and shifts attention from firms and industries to regions. The objective is to measure knowledge elasticity effects within a regional Cobb- Douglas production function framework, with an emphasis on knowledge spillovers. The analysis uses a panel of 203 European regions to estimate the effects over the period 1997-2002. The dependent variable is total factor productivity (TFP). We use a region-level relative TFP index as an approximation to the true TFP measure. This index describes how efficiently each region transforms physical capital and labour into outputs. The explanatory variables are internal and out-of-region stocks of knowledge, the latter capturing the contribution of interregional knowledge spillovers. We use patents to measure knowledge capital. Patent stocks are constructed such that patents applied at the European Patent Office in one year add to the stock in the following and then depreciate throughout the patents effective life according to a rate of knowledge obsolescence. A random effects panel data spatial error model is advocated and implemented for analyzing the productivity effects. The findings provide a fairly remarkable confirmation of the role of knowledge capital contributing to productivity differences among regions, and adding an important dimension to the discussion, showing that knowledge spillover effects increase with geographic proximity. (authors' abstract)

This thesis deals with various issues regarding determinants of US corporate credit spreads. These spreads are estimated as the difference between yields to maturity for corporate bonds and default-free instruments (Treasury bonds) of the same maturity. Corporate credit spreads are considered as measures of default risk. However, the premium required by investors for holding risky rather than risk-free bonds will incorporate a compensation not only for the default risk but also for other factors related to corporate bonds such as market liquidity or tax differential between corporate and Treasury bonds. In this study we firstly examine the relationship between bond ratings and credit spreads given that bond rating changes are expected to carry some informational value for debt investors. The findings indicate that bond ratings generally carry some informational value for corporate bond investors. The Granger causal relationship is more evident for negative watch lists and during periods of uncertainty in financial markets. In line with previous studies, our results suggest that changes in credit spreads are significantly related to interest rate levels, systematic risk factors (Fama and French) factors and equity returns.

The opening up process of the central and eastern European (CEE) countries marked new beginnings in terms of greater integration of trade and foreign direct investment (FDI) with Western Europe. Adopting a two-stage out-of-sample gravity equation approach to predicting East West trade patterns, a panel data set of bilateral exports from twelve EU countries to twenty OECD partner countries is estimated over the 1992-2003 period to examine how integrated the CEE countries are with the West European countries. In general, countries which are initially less well-integrated with the EU have strongest trade potential: among the EU accession countries, the potential candidate countries look set to benefit most whereas the mixed trade ratios among the EU associated countries reflect very diverse economic structures. Using a similar approach to project East West FDI patterns, the potential to actual ratios of FDI stocks indicate a very uneven distribution of FDI among the eleven CEE countries. The FDI stock ratios accord with patterns of regional specialisation for the Czech Republic, Hungary and Poland and suggest greatest FDI potential lies with the two latest accession countries. As the West European countries represents the CEE countries main trading partners and their main sources of FDI, the nature of the trade-direct investment relation among the group of EU OECD countries is of potential importance to the CEE countries. Merging the determinants for both trade and FDI into one model and estimating the merged model as a trade equation and as an FDI equation, the EU OECD patterns of FDI are characterised by both horizontal FDI (HFDI) and vertical FDI (VFDI). The dual role of HFDI and VFDI is supported when the general model of trade and FDI determinants is estimated using an instrumental variables method and when the additional price variables of FDI and trade are interpreted as cross-price elasticity effects. In a competitive world, attracting more FDI to the CEE countries may not only mean catering to the traditional MNE motives, but can also depend on transition-related factors and host country policies. Using a panel data set of bilateral FDI flows from twelve EU countries to eleven CEE countries, the traditional determinants of direct investment along with the liberalisation process and infrastructure endowments are found to significantly affect FDI over the 1994-2003 period.

本研究旨在探討銀行往來家數對企業績效及舉債成本之影響。根據過去研究，銀行往來家數對企業績效及舉債成本的影響無定論，因此本研究以46家國內一般銀行(包含本國銀行及外商銀行)承做台灣上市上櫃公司的借款作為研究對象，研究樣本自2005年至2014年共計10年的借款資料進行實證分析，依據三個模型，分成兩部分來說明實證結果:成長機會高及借款額度大之企業，採用Panel Data進行迴歸分析，來檢驗銀行往來家數對企業績效與舉債成本之關聯。 本研究假說認為成長機會高之企業與多家銀行往來，會有資訊洩漏之風險，但實證結果顯示，成長機會高之企業，銀行往來家數越多績效表現越好，推測原因為成長機會高之企業資金需求大，因而在企業機密資訊揭露與補足資金缺口兩者中，選擇與多家銀行往來以獲取足夠之資金;但在同樣成長機會高之企業樣本中，銀行往來家數對舉債成本無顯著影響。 另一方面，借款金額越大之企業樣本中，本研究實證結果顯示其績效表現沒有比較差，並且與多家銀行往來對績效表現沒有幫助; 一般來說，借款金額越大舉債成本越高，然而，本研究實證結果顯示借款金額大之企業與越多家銀行往來，會使得舉債成本下降，過去也有研究指出與越多家銀行往來，可以透過多家銀行協商，取得較佳的借款條件，與本研究實證結果相符。