Performance of stock markets is determined by three classes of variables: macroeconomic indicators, industry & firm heterogeneity and third country effects. When assessing performance of a stock market index, impact of industry & firm heterogeneity is marginal as it is already embedded in the index through its constituent companies. This paper will therefore focus on the other two. Chinese stock market was selected as an application as their performance compared to other domestic indicators (mainly GDP growth) is considered inferior by many researchers. Using econometric framework for panel data and a Bayesian extension, the paper estimates multiple models of Chinese stock market performance examining individual determinants of it. Subsequently, it predicts development of theoretical prices of two main Chinese stock indices on two time samples until 2013. The paper then demonstrates underperformance of Chinese stock market by comparing the modeled prices to actual prices realized on the market. JEL Classification C23, C51, C53, G15, G17 Keywords underperformance, panel data, fixed effects model, Bayesian Model Averaging Author's e-mail roman_kovac@ymail.com Supervisor's e-mail karel.bata@seznam.cz

African countries have over the last few decades, experienced a thorny path towards sustained economic growth. Quite a number of researchers have opined that a major factor responsible for their stunted growth path is the prevalence of corruption in the governments of many African countries. However, a group of scholars, called revisionists, have suggested that corruption actually acts as grease in the wheel that ensures the smooth running of an economy, by providing a mechanism to evade inefficient bureaucratic procedures and allow more equitable representation of minority members of the society. With the increasing exposure of African economies to the international community, there is a need to examine the obtainable evidence in relation to corruption and economic growth in African countries. This thesis, therefore, aims to establish the nature of the relationship between corruption and economic growth in the selected African countries. The growth rate of gross domestic product per capita is used to represent the variable, economic growth. The study employs the use of panel data fixed effects and random effect estimation techniques, across 18 countries, over the period of 1997 – 2016. The results show that corruption has a positive relationship with economic growth in the selected African countries. This is in line with the grease in the wheel argument for corruption proposed by revisionists. The results also indicate that corruption has a moderately significant impact on economic growth at 10% level of significance. The literature review suggests that corruption affects economic growth directly and indirectly through mechanisms such as investment (private and public), human capital, openness, and institutional mechanisms, among others.