Abstract This thesis analyses the stock market synchronicity of 34 emerging markets and compares the findings with seven developed markets. The study uses weekly stock return data and the final dataset includes approximately 20.8 million weekly observations for 40,014 firms across the world. Morck et al. (2000) are among the first to introduce the topic of stock market synchronisation and argue that stock markets in economies with high per capita GDP move in a relatively unsynchronised manner over time, in contrast to stock prices in low per capita GDP economies. They also suggest that stock synchronicity is associated with macroeconomic indicators including rule of law, inflation, corruption and geographical size. In addition, Skaife et al. (2006) propose a further measure of stock synchronicity based on the proportion of zero returns and argue that the zero-return measure is a superior measure of stock market co-movement. The study uses both measures proposed by Morck et al. (2000) and one measure proposed by Skaife et al. (2006) for synchronicity analysis and extends the analysis to cover a ten year period, a larger sample of shares and more recent measures of country specific characteristics. It is found that stock markets in emerging economies are more synchronous than in developed economies over the sample period using the classical measure. It is also found that over the 10-year study period the synchronicity measure is stationary. There is evidence of a statistically significant negative correlation between stock synchronicity and both government accountability and corruption for the emerging markets using the cross-sectional analysis. The R-square measure of stock synchronicity averages 0.091 for the emerging markets and 0.045 for the developed economies, suggesting that higher stock price co-movement is evident in emerging economies. Further, there is a statistically significant positive correlation between the R-square measure and both corruption and inflation. The study also uses the zero-return measure of stock synchronicity suggested by Skaife et al. (2006). It is found that the zero-return measure for emerging economies is higher than for developed economies. Surprisingly, China and the S&P 500 group of companies exhibit the lowest values for the zero-return measure during this period, which is inconsistent with the classical measure and the R-square measure. Further, panel data analysis shows that GDP per capita and trade openness have a strong effect on the zero-return measure. The Pearson correlation and Spearman rank correlation coefficient indicate that the classical measure and the R-square measure are positively correlated and appear to capture similar aspects of the markets in the study, which is also consistent with cross-sectional analysis results. In contrast, the zero-return measure shows either insignificant or negative correlation with the classical measure and the R-square measure for most sub-period and full period analysis. Finally, there is evidence that emerging stock markets are more synchronous over time than in developed financial markets. It is found that common-law country stock synchronicity is lower than in civil-law countries or post-communist countries using the classical measure and the R-square measure.

This thesis intends to evaluate, theoretically and quantitatively, existing studies related to the absorptive capacity of the Saudi Arabian economy. In our study, we put forward a new approach to understand the concept of absorptive capacity _ one which takes into account the special characteristics of oil-based economies in building a macro-economic model. We define absorptive capacity as "the ability of the economy to absorb, and utilize oil-revenues effectively, within a given period." Such utilization will be for consumption, investment and trade. Our approach is quite comprehensive since it considers all sectors in the economy. The Saudi economy with its unique feature represents an interesting development pattern, where the problem is not capital scarcity but capital abundance and its effective utilization. We believe that this criterion alone mandates a new development model, a task that we have tried to fulfill in this study. Our study aims to examine the success of the Saudi economy in utilizing oil revenues to expand its absorptive capacity and in accelerating the process of diversification of the economy. Accordingly, an econometric model has been formulated and the statistical results have been presented. The simulations exercises are designed to test the validity and stability of the model. The study also provides a forecast for the absorptive capacity of the Saudi economy until 2000. A comparison between our projection and the government's estimation for the Fourth Plan (1985-1990) is also presented. On the basis of the available statistical criteria, the performance of our model could be regarded as very satisfactory. We hope that the policy implications derived from this empirical investigation will be helpfull as guidelines in formulating future policies for providing sound and stable growth of the economy.

The aim of this thesis is to consider two issues that are of particular significance for macroeconomic modelling. These are the existence of post-so'riet transitional economies and the relevance of either Post-Keynesian or Neo-Classical policy advice in the context of dynamic disorder. In this work, I use a methodology called System Dynamics. This prm'ides an alternative, interactive methodology for analysing macro-dynamics. Traditional macroeconomic tools such as Regression Analysis, Time-Series Analysis, Simultaneous Equation Models and the like require many years of unbroken data which does not exist for transitional economies. It is shmt'n that the different approach of System Dynamics can overcome these difficulties. Some of my models of the Kyrgyz Economy used quantity-rationed systems with pulse elements integrated into potential and actual excess demand levels reveal dynamic equilibria, disequilibria and the potential for chaotic behaviour. The d(tJiculties facing macroeconomic management in these conditions and the polrver of the System Dynamics modelling methodology in assisting policy formulation and evaluation are stressed. The key inSights delivered by the models discussed indicate that policy targe/cd at reducing delay lags could be beneficial in alleviating innate tendencies in this economy towards endemic disequilibria in Aggregate Supply and Demand. Morco)'er, due to the potential for chaos existing in the non-linear dynamic economic relationships inherent in the models the relevance (~lpolicy options based on cither extremc Post-Keyncsian or Nco-Classical thinking are questioned. Indeed our Post-Keynesian (zrnamic models contain non-linear dynamic tendencies, 'which parado,Yical(Y yield policy implications consistent with .Yco-Classical thinking.

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Abstract The research question we wish to investigate is the degree to which different countries with differing levels of NSI strength and weakness cope in mitigating some of the adverse impacts of the recession. In general during the recession confidence declines or what Keynes calls the „animal spirit‟. Creative destruction is heightened as firms destroyed need to find other ways of recreating their economic activities. Exports and imports change. Investment from abroad declines and consumers afraid of the recession save or even hoard. Such a state is likely to impact those who are absorbing FDI and exporting to the heartland of the current recession which is the US market. China and India both export mainly hardware and software related goods and services respectively to this market where reduction in demand has resulted in company closures and unemployment. Even free trade has been challenged with protectionist and nationalist rhetoric on the rise during this recession. Given a recession that has affected the entire world economy and its constituent parts, both the way the recession impacts on different national economies and the ability of national economies to mitigate the recession are likely to be different. This paper concentrates on the latter not on the former per se. We examine what mitigating capability different national innovation systems have in relation to dealing with and responding to the current world financial and economic crises. The hypothesis we would like to test with descriptive comparative data is how far the relative strength or weakness of the NSI is capable of mitigating the adverse impact of the recession. We assume that that the nature and degree of impact of the recession across countries are likely to be different. In this paper we would like to take only the NSI factor in trying to account how such differences due to the individual characteristics of NSIs across different countries mitigate recessionary impact on given economies. For this, we propose to examine selected sectors from selected emerging economies such as China, India, Brazil and South Africa (BRICS excluding Russia) to estimate mitigating capabilities of different NSIs.

Abstract Whenever people think of FDI flows, the traditional assumption is that the investment flows from MNCs in the developed economies to either other developed economies and/or to the developing world. Now, a new trend has emerged owing to the process of globalisation. That is, FDI from the emerging and developing economies such as China, India, South Africa and Brazil is flowing to both developed and developing economies. There is more flexibility of movement of capital and knowledge which does not conform to hitherto held assumptions that FDI flows in a particular pattern to particular locations, that is, largely from the developed economies to the developing economies. This new trend needs to be captured both empirically and conceptually. One work we have been doing is exploring the new phenomenon of R&D related FDI flow into the emerging economies such as India, China and Brazil (Baskaran and Muchie, 2008). It is interesting that knowledge that is assumed often to be retained in the home parent company (usually in a developed country) is now open to movement to the to other parts of the world where there is a very strong pool of concentration of talent and skills such as India and China. Similarly, companies from the developing world now appear to be looking for strategic presence in other countries - both developed and developing economies. We explore the factors driving this outward flow of FDI from developing economies and the shape and nature of this flow. Further more, the research will examine the implications of this trend -- whether the FDI itself is changing because of this new trend and in what way this is taking place in reality. For this, we employ case studies of companies with external involvement from selected economies -- China, India and South Africa.

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