Ph.D. / The aim of this study is to analyse the effects of international capital movements on emerging market economies within a progressively integrating international financial system. The approach followed is to incorporate several subject areas necessary to understand the dynamics of capital flows. These include the trends, composition and characteristics of capital flows, financial issues relevant to developing countries, the role and importance of financial institutions in allocating capital, the behaviour of investors, modern financial innovations, financial crises, policy implications and the role of governments ...

Typescript. / Bibliography: leaves 184-197. / Microfiche. / viii, 197 leaves ill

Thesis (Ph. D.)--University of Washington, 1998. / Vita. Includes bibliographical references (leaves[129]-135).

Thesis (Ph. D.)--University of Wisconsin-Madison, 1989. / Cover title. eContent provider-neutral record in process. Description based on print version record. Includes bibliographical references (p. 392-410).

There are two leading perspectives on trade and economic development: the classical view based on the ideas of free trade and comparative advantage, which regards the international division of labor through free trade as supporting economic development; and the dependency theory view regards the international division of labor as an obstacle to the economic development of the now underdeveloped countries. The purpose of this study is to investigate hypotheses advanced by dependency theory, and, more particularly, by Galtung's Structural Theory of Imperialism. According to Galtung's theory, the world is divided into center and periphery countries, themselves divided into center and periphery sectors. The distinction between center and periphery is based on differences among nations in trade partner concentration, export commodity concentration, vertical trade, and quality of life. A periphery country is said to have most of its trade with one center country, while a center country IS free to trade with many partners. A periphery country tends to export a small number of primary products, while a center country has a greater diversity of exports, which are principally manufactured goods. These factors reflect a dependence of the periphery on the center and produce a gap in the quality of life between the two. The synchronic properties of the center-periphery relationship are tested for 127 countries for the years 1962, 1970, and 1980 with bivariate correlation calculations among ten variables: 1- Trade Partner Concentration (EPC), 2- Total Trade Linkages (TTL), 3- Import Partner Concentration (IPC), 4- Export Commodity Concentration (ECC), 5- Import Commodity Concentration (ICC), 6- Vertical Trade (VT), 7- Physical Quality of Life Index (PQLI), 8- Percent share of GOP in Agriculture (AGR/GDP), 9- GNP per capita (GNP), and 10- Export Dependency (ED). The diachronic properties of the world system at the regional and global levels are investigated by: 1- developing export trade hierarchies to identify center and associated periphery countries; 2- comparing regional and global averages for the national variables; 3- conducting decomposition analysis of export/import activity to assess diversities within and among regions; and 4- calculating system-wide variables, Global Polarization (GP) and Global Concentration (GC), based also on import/export data. At the national level, all hypothesized relationships among the ten variables are confirmed (are statistically significant at the .05 level), except for all relationships involving ICC and some relationships involving ED. The ICC results support the contention of Michaely that import and export commodity concentrations are positively correlated, in contradiction to assertions made by Leontief. All correlations between TPC, ECC, VT, and POLl agree with the propositions of dependency theory. At the regional level, the study reveals the continued existence of differences between the industrialized region and the other regions of the world, despite improvements for some regions in some variables (e.g., EPC, VT, and POLl). Regions are more homogeneous with respect to member countries than the world is with respect to regions. At the global level five major hierarchies (United States, United Kingdom, France, West Germany, and Soviet Union) are identified. From 1962 to 1980, the United States' hierarchy grew, mostly at the expense of that of the United Kingdom. Japan's hierarchy, nonexistent in 1962, emerged strongly by 1980. The systemic variables, GP and GC showed moderate to high, but constant, levels. No clear trend is apparent over this study period for the world system as a whole. While global averages and averages for the non-industrialized regions show changes in many variables in the direction of reduced world system differentiation, the systemic variables and the results of the decomposition analysis show constancy over time. However, an increased differentiation is suggested by GNP I capita data. In summary, although systemic changes over time are complex and individual countries may show ascent or decline, the general pattern of differentiation between center and periphery, as proposed by Galtung and others, holds true for the post World War II period.

M.Com. (Economics) / Please refer to full text to view abstract

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Diss.--Universität München, 2009. / Includes bibliographical references.

Title from PDF of title page (University of Missouri--Columbia, viewed on Feb. 15, 2010 ). The entire thesis text is included in the research.pdf file; the official abstract appears in the short.pdf file; a non-technical public abstract appears in the public.pdf file. Dissertation advisor: Dr. A. Cooper Drury. Vita. Includes bibliographical references.

This thesis examines the interaction between real and financial decisions in a two-country world economy. To understand this interaction, we develop two-country general equilibrium multi-period models of pure exchange and production economies. We model the real decisions of consumption and investment choice and the financial decisions of portfolio choice explicitly under various degrees of financial market integration. In addition, we allow the governments to act strategically in making their policy choice regarding the degree of integration in the international goods and financial markets. Therefore, our models allow us to examine the effect of the interaction between real and financial decisions on policy choice in the goods and financial markets. The main results in the thesis are presented in Chapters 3, 4 and 5. We first analyse how the optimal tariff decision may vary under different financial market structures. In order to do so, we determine the government's choice of tariff level using a two-good general equilibrium framework where the financial structure in the economy is explicitly modelled. We find that the extent to which of financial markets are integrated affects trade policy decisions in the commodity markets. Specifically, we find an inverse relationship between the Nash equilibrium tariff level and the degree of international financial market integration. The intuition underlying this result is as follows. In our model, the government uses tariffs to cause a favourable change in the terms of trade. However, in the presence of financial markets, households can hedge endowment risks and the change in the terms of trade by using financial contracts. Thus, the favourable terms of trade effect (which is the motivation for a tariff in our model) associated with a tariff levy is reduced with increasing degrees of financial integration. Given the influence of financial market structure on endogenous trade policy, we then characterise and numerically compute the welfare gains from financial market integration. We identify the welfare gains from two sources. The direct source is the gain from risk-sharing in the financial markets. The second source is the gain from free trade in the commodity market that results from a government's tariff game in the presence of complete financial integration. We find that the magnitude of the welfare gain due to free trade is substantially greater than that due to increased risk-sharing capabilities under a reasonable calibration of our world economy. Thus far, we have assumed the financial market segmentation in the economy to be exogenous and our results suggest that the existing financial market structure has important repercussions in the-commodity markets. In the third part of our analysis, we analyse the government's choice of financial market structure. To do this, we examine the equilibrium policy choice of financial market segmentation in the absence of trade policy. That is, under what conditions will a country find it optimal to limit access to its own or foreign capital markets? Our results suggest that in the special case in which the production technology exhibits constant returns to scale in capital, each country may choose to deny foreign access to its domestic stock market. In general however, we find that complete financial market integration will be the optimal choice for both countries. Our main finding is that there are strong interactions between financial markets and goods markets. Consequently, the optimal tariff level can be very different under different financial market structures. Also, the welfare impact of opening financial markets can be large, given the influence of financial market structure on endogenous tariffs in the goods markets. Finally in a production economy, the optimal financial market structure can be related to the nature of the production technology. Some policy recommendations follow from our work. First, the existing financial market structure in the economy should be considered in making the policy choice of a tariff level: the more integrated the financial markets, the lower the optimal tariffs. Second, the share of capital in a country's production technology is an important factor in the decision of the optimal financial market structure. When the production technology exhibits decreasing returns to scale in capital, the optimal financial structure is complete integration.