Theoretical models of the exchange rate are developed where information on the model is not fully available to agents. It is an application of Benjamin Friedman's (1979) theme that full rational expectations may be a possibility only in the long-run, even for completely rational individuals. The thesis attempts to develop the theory of exchange rate behaviour by considering some neglected informational issues. The three substantive chapters each consider specific aspects of relevance to the determination of the exchange rate from an asset market view of perfect capital mobility. These are the possible current account inter-relationship, the persistence of interest rate differentials between the two currencies and the subjectivity of and the regress in beliefs across a decentralised market. Generally, limited information on the model will give rise to erroneous beliefs, on the one hand, and encourage the acquistion of information and the revision of beliefs, on the other. Erroneous beliefs will cause correlations between variables, which may not normally occur inside full rational expectations. The revision of beliefs will bring a particular source of non-stationarity to the data. And the stability of certain learning forms may require limitations on the degree of capital mobility. These conclusions would suggest that any empirical work on modelling the exchange rate may gain from relaxing certain a priori restrictions, which properly belong to models with stronger assumptions on the availability of information.

It is believed that the more backward a country, the great potential for her to catch up. The history of the modern economic growth, which started in the United Kingdom in 1780, seems to have indicated this. But why has only a tiny group of countries managed to achieve modern economic growth? The neo-classical growth theory, based on the assumptions of constant return to scale, law of diminishing return and perfect competition, failed to explain the key causes of economic growth. The post-war experience of some countries, particularly Japan and South Korea, indicates that some things other than the increase in weighted labour and capital inputs, as claimed by the neo-classical growth theory, may have played a more important role in their rapid economic growth. Technological progress is now regarded by many economists as the most important contributing factors to economic growth. Technological advance generates economic growth through its effect on total factor productivity. However, where the new technologies come from, raining down from heaven as many neo-classical economists suggest, or resulting from the intentional investment as the new growth theory shows, has been an important controversial issue over the past three decades. It is hoped by many that the new growth theory could help to open the 'balck [sic] box' in the near future. This thesis is to examine what role technological advance has played in the economic growth of Japan and South Korea over the past three decades or so. A comparative analysis of China, Japan and South Korea in technology transfer, adaptation and diffusion will also be one of the main tasks of the study. Through this, the study tries to identify the key factors responsible for the successful assimilation and diffusion of new technologies in the Japanese and Korean economies. The main aim of the thesis is not to test the new growth or new trade theories. However, the key elements of the key elements of the new theories have been analysed throughout the study. The present study goes further beyond the areas that have been raised in the new theories. The cultural factor, country's socio-economic background, role of government, role of industrial policies and the character of different institutions will also be examined. The findings of the present study are: economies of scale and external economies have been the important factors for Japan and South Korea to have gained some comparative advantages in petrochemical and electronics industries. Rapid and efficient transfer and diffusion of new technologies have been the driving forces behind the fast economic growth both in Japan and South Korea during the post war period. A highly competent and efficient government, appropriate economic and industrial policies, a disciplined and well educated labour force and close co-operation between the government and the business community and between the management and employees have also played important role in the Japanese and Korean economic success.

This study examines three bilateral aid funds : the Kuwait Fund for Arab Economic Development, (KFAED), the Abu Dhabi Fund for Arab Economic Development, (ADFAED), and the Saudi Fund for Development, (SFD), which were established in 1961, 1971 and 1974 respectively. It also analyses the multi-lateral Arab Fund for Economic and Social Development, (AFESD), which was established by the Arab League in 1968. Collectively they are the principal vehicles used by the Gulf states to utilize their oil wealth to promote economic development in the Third World in general and the Arab world in particular. Operating as autonomous organisations, which are able to remain neutral in the face of political and ideological pressures, the Arab Gulf Funds have proved remarkably successful and influential institutions. This study aims at analysing the legal structure and operations of the Arab Gulf Funds. Attention is then focused on the future and the ways in which the funds can operate more effectively. I believe that a new fund, which would be known as the Arab Gulf Development Fund, (AGDF), is required. This fund, which would be administered by the Gulf Co-operation Council, (GCC), could coordinate the Arab Gulf's aid operations. A new comprehensive strategy is required and a working plan should be prepared for the new fund to adopt and execute. This study attempts to achieve two related objectives. The first is to propose specific amendments to the legal framework of the existing Gulf development funds. The second objective is to propose the establishment of the new Kuwait based Arab Gulf Development Fund, (AGDF). This would enable better results to be achieved in both the GCC member states and in the developing countries. Specific recommendations are made for the Gulf's aid strategy in light of the formation of the Gulf Co-operation Council. Co-operation between the development funds and investment institutions of the industrialised countries and those in the GCC states are, however, essential. Only by joining hands and working together will progress and economic development be made possible. It should be remembered by everyone that the modern world is not only interdependent but that it is for all of humanity.

It may be a case unique to the World Trade Organization(WTO) that an aspect of accession to the organization became an issue in itself. Since the WTO came into being in 1995, the process of accession has been a subject of intensive debate. It has been like this because of the extremely complicated nature of the process. The reason for such complexity is dual. On the one hand, an accession issue under consideration will be scrutinised in a manner that exceeds traditional trade concerns such as customs law, tariff schedule and related regulations on imports and exports to include items that might penetrate domestic legal and social boundaries. Such scrutiny, on the other hand, must satisfy all interested incumbent WTO members before accession is granted. This is normally done through an extensive and lengthy bilateral negotiation between the acceding country and the members with an interest in its application. Thus, the question of the WTO accession has become of attention grapping nature. In fact, following the establishment of the organization, the question of accession emerged as one of the various pressing WTO-related issues that attracted attention at both academic and practical levels. In this thesis, the WTO accession question will be examined with regard to the accession of Saudi Arabia. This was one of the most difficult and protracted accession processes and the thesis will concentrate on the factors that determined the WTO accession of this case. The literature on the WTO argues that the decision on any country’s accession is based on a set of generic factors. These include, for instance, integration in the world economy, locking in domestic reforms, opening new markets and attracting foreign investment. Although very important, the attempt to investigate the factors that shape a country’s desire to accede to the WTO– as examined in this study with respect to Saudi Arabia (seeking an accession in the face of the inherent complexities, liabilities and potential penetration of internal affairs) – requires answers that go further than these factors introduced in the literature. It is not the case that a country decides to join the WTO for particular reasons and the actual accession follows immediately. Accession is a process that takes a very long time and the issue of a country’s accession cannot possibly remain static throughout the time until its application is officially approved. This should be taken into account because it can produce some important questions. For example, will the internal perception and position of the parties involved remain the same during the period in which accession is being negotiated? Will the accession factors change over time to become more or less important? What are the politics involved? The answers to such questions will necessarily lead to a realisation that more elements than the aforementioned direct factors indicated in the literature need to be considered in order to understand WTO accession. However, examining questions of this nature, such as the politics involved in an accession case, would conceivably lead to some considerable particularities attached to a specific accession case and this applies to Saudi Arabia. The main question, then, that the study aims to answer is: what were the specific factors that shaped this accession case? In fact, the importance of the Saudi accession case is generally due to four factors: (a) the periods of varying intensity with respect to the negotiations themselves; (b) the protracted length of time taken to complete the accession process; (c) Saudi Arabia’s unique characteristics as a country; and (d) the fact that not much has been written about this accession process. Since the decision to join the WTO is intrinsically linked to trade policy, and as this normally involves a great deal of internal politics, the thesis supposes that studying the domestic interaction that was at play during the years of the accession process can best explain the accession of Saudi Arabia to the WTO. With regard to the importance of internal politics to the case, the thesis will focus on the domestic institutions and interests that the affected Saudi Arabia’s accession. In the process of doing this, external factors will also be taken into account.

The General Agreement on Trade in Services (GATS) along with other agreements was concluded in the Uruguay Round of Multilateral Trade Negotiations in 1994. However, negotiations continued within the WTO framework and are still a work in progress on some specific issues under the GATS including the question of Emergency Safeguard Measures, which has been raised in Article X of the GATS as part of its ‘built-in agenda’. The thesis looks at the concept of the Emergency Safeguards Measures (ESMs) in the GATT/WTO and tries to develop an answer to the ‘question of ESMs’, which is deluding the negotiators and researchers for more than fifteen years. The thesis tries to analyse whether the GATT type ESMs can be transposed to GATS. It also explores that whether ESMs that are modelled on GATT are feasible under GATS, and if feasible, are these really desirable. If these are feasible and desirable then what should be their possible structure remaining within the existing GATT paradigm. The thesis walks through the provisions that already exist in the GATS to meet the circumstances perceived by the countries that are seeking specific ESMs under GATS and whether these provisions address the concerns of the demanders of the concept. The thesis not only takes into account the academic and legal literature on the subject but also and perhaps more practically, takes into account the dynamics of the negotiations, discussions and debates within the WTO system on the subject. The thesis tries to provide an in-depth analysis of the issue and goes beyond what is already available in the International Trade Law literature on the ESMs under the cross border trade in services. It seeks to answer a question that presently exists in the International Trade Law especially with reference to the law emerging out of WTO.

This study is concerned with recent developments in international investment and the theory of the firm. The proposition that markets and hierarchies are alternative governance structures for completing related sets of transactions is less contentious. However, the view that foreign direct investment is the most efficient governance structure, in transaction-cost economizing terms, remains controversial. This research identifies with this contention. The premise of the study is that the governance structure of foreign transactions cannot be confined to or decided within the framework of hierarchy alone. The study presents a number of market mechanisms firms use to accomplish foreign transactions. Termed "New Forms of International Investment", these strategies involve non-equity (i.e. contractual/cooperative) and minority-equity arrangements. Hypotheses concerning the transaction cost nature and the impact of managerial perceptions of several explanatory factors were developed and tested using data gathered from a questionnaire survey of, and interviews with, executives from 66 MNCs and 31 MNBs. The results of the research provide evidence that while firm-specific characteristics offer firms opportunities to evaluate their strengths and weaknesses in relation to given overseas markets, host country-specific characteristics offer a complementary platform for assessing the optimum mode of entry. Also, managerial perceptions of the nature and importance of these factors and their impact on the diversification strategy of the firm were found to be significant in entry mode choices. The greater the perception of distortion propensities in a host country, the more likely resources, insofar as they would be transferred at all, would be transacted via new forms. There was no evidence to support the literature contention that the use of the new forms is a particular phenomenon of developing countries. These findings were reinforced by the interview results.

This thesis examines the extent to which the Flexible Specialisation model of Industrial organisation constitutes a v Iab Ie and app IIcab Ie strategy for sma II sea Ie manufactur Ing firms In Greece. This Involves: 1. The evaluation of the Flexible Specialisation paradigm as a response and as a way out of the crisis. 2. The analysis of the development trajectory of small scale Industry In Greece. 3. The Identification of the current characteristics of sma II manufacturing firms In Greece, their strengths and their weaknesses. 4. The evaluation of the future prospects of smal I scale Industry In the light of the Flexible Specialisation strategy. The first part of the thesis (chapters 1, 2 and 3) deals wit h the Que st Ion 0f res truc turi ngin v Iew 0f the cri sis and exam Ines a Iternat Ive ways of organ Ising product Ion. It looks more closely to the Flexible Specialisation In the light of academic experimentation with new concepts, ranging from post- Fordlsm to Flexible Accumulation. It evaluates the strengths and the weaknesses of the Flexible Specialisation model, and considers Its merits against previous sma II scale Industry theorisations. The second part of the thesis (chapters 4,5 and 6) exam Ines the po IIt Ica I economy of Industry In Greece In order to unravel the economic, soclo-polltlcal and Institutional factors account Ing for the emergence, conso IIdat Ion and perSistence of small firms as a considerable part of the Greek manufacturing structure. The third part of the thesis (chapters 7, 8 and 9) Is based on evidence from fieldwork material on three manufacturing branches (metalworking-engineering, clothing and plastic products) and brings out similarities and differences of alternative responses to the economic recession. It examines the extent to which flexible specialisation principles have been Introduced by some sma II firms In the sectors under consideration. Finally, the fourth part (chapters 10 and 11) brings together the main themes developed In the course of the thesis In order to explore the scope and deslrabl Ilty of pol Icy InterventIon In the dIrectIon of Inducing a flexIble specialIsatIon restructuring pattern. The major conclusions of the thesIs are summarIsed In the fInal chapter.

This thesis evaluates the Korean capital market internationalisation and examines the efficiency of the Korean stock market comprehensively. For this purpose this study is concentrated onthree main areas as follows. First, this thesis evaluates the capital market liberalisation by examining the internal market mechanism and conducting geographical comparisons. The general structure of the Korean securities market and disclosure system are described, and the development of the capital market is reviewed. The liberalisation plan is examined. It is found that the internationalisation plan of the Korean capital market should be gradual and balanced with general economic conditions. Several measures are recommended to enhance the functions of the domestic capital markets. Also comparative characteristics of capital market in the Far East are described, including equity market, bond market, money market, and foreign exchange market. Second, this thesis examines the relationship between the macro economic activities and the capital market in Korea. Using the interest rate model for 14.5 years, the expected inflation is uniformly positively related to inflation. The relations between stock returns and expected inflation, and between stock returns and unexpected inflation showed negative. Thus, the common stocks in Korea are found not hedging against inflation. And real variables influence to real stock returns as fundamental determinants of equity values. However, these real stock return inflation relations are found varying over time. The results of the recent five and half years period showed positive relation or no relation between real stock return and inflation. Third, this thesis examines the efficiency of the Korean stock market at three different levels. In the weak form empirical tests, the results manifest mixed behavior across samples. But the average results by serial correlation analysis, runs analysis, and spectral analysis do not show random walk behavior. In the frequency distribution model, the average results indicate relatively fat tails. In the semi-strong form test, the valuation effects of bonus stock issue announcements are found to react to share prices in a relatively short period. Investors on average cannot get significant abnormal returns. In the strong form test, the excess returns from following the 467 recommendations made by the four Korean stockbrokers turned out to be significant before deducting transactions costs. But considering transactions costs, the abnormal gain is close to zero. In summary, the results show that the Korean stock market in its early stages did not have the ability to help investors to 'relatively correctly price' the shares. More recent evidence shows improved efficiency which is likely to continue as the capital market expands.

This thesis presents an aggregated econometric model of the world shipping markets. The model distinguishes between dry cargo and tankers and also between the a) freight market, b) second hand market for ships, C) shipbuilding market, d) scrap market. Chapters 1,2 of the thesis examine the history of shipping in the last 100 years or so, analyse the cyclical behaviour of the industry, and consider past theoretical attempts at modelling the shipping markets. It is argued that the structure of existing models of the shipping industry is theoretically flawed In its treatment of the demand for new and second hand ships as well as in the treatment of expectations. Chapter 3 presents a 'new' theoretical model of the behaviour of shipping markets that attempts to remedy these defects. Novel features of this theory are the assumption of 'rational expectations' in shipping markets as well as the treatment of new and second-hand ships as assets, the portfolio demand for which varies with the own expected return relative to the return on other assets. Econometric versions of the theoretical model are estimated from post World War II annual data, separately for the dry cargo and tanker sectors In chapters 4, S. The two models are linked In chapter 6 and the models are used In order to simulate the dynamic response of the shipping markets to anticipated and unanticipated external shocks. A crucial role in the adjustment process is played by the forward looking speculative positions of investors in the second hand and newbuilding markets. Chapter 7 tests the assumption of the rational expectations hypothesis in the shipping markets by examining the evidence from the freight futures, time charter and new building markets. The stochastic behaviour of these variables is examined and statistical tests are performed in order to Investigate the extent to which this Is considered to be consistent -with the efficient markets / rational expectations hypothesis. The results are somewhat mixed. Chapter 8 illustrates how the model can be used for real world forecasting purposes and scenario planning.

An attempt is made to examine the importance of the Pacific region to the economy of Singapore, using several standard methodologies in the international economics literature. Singapore's trade with and investment flows from the 'region' have been increasing significantly, while its interaction with Europe has diminished. Hence, in light of these developments, it is useful to explore the links between Singapore and the Pacific region, especially with respect to ASEAN. The trade aspect of the theses has been based on models developed by Balassa, who used them in an attempt to analyse the growth and development of the European Community. Firstly, in analysing the changing comparative advantage in the region, a measure of revealed comparative advantage is adopted, Balassa's export specialisation ratio (1965). Secondly, the changing pattern of trade in manufactured goods is examined in relation to changing country characteristics by the use of an econometric technique - ordinary least squares - (Balassa 1979). Then, using a measure of intra- industry trade (Grubel and Lloyd 1975), the figures are examined for ASEAN along with a study of intra-industry trade by commodity group for Singapore. Balassa's method of estimating trade creation and trade diversion (1963), is used in order to test the effectiveness of economic cooperation in ASEAN. Singapore adopted an open strategy towards Foreign Direct Investment (FDl). The effects on Singapore can be conveniently reviewed under the standard industrial economics format of structure, conduct and performance. Using Dunning's adaption of the 'industrial organisation approach' (1973), it is possible to show, by examining the statistical relationship between a number of structural variables and the sectoral distribution within the manufacturing industry (correlation technique - bivariate normal distribution), that the ownership advantages of multinational corporations have assisted Singapore's economic restructuring towards Higher allocative and technical efficiency; and that multinational corporations have adjusted to the changing locational advantages of Singapore's resource endowments rather more positively than national firms.