FDI and Local Financial Market Development:A Granger Causality Test Using Panel Data

This paper reports the findings of Granger causality tests on the relationship between foreign direct investment (henceforth, FDI) and local financial market development across 62 countries from 1996 to 2007. In this paper we explore whether local financial market development is important in catalyzing the flow of foreign direct investment. findings results are robust to different measures of financial market development. Furthermore, the results indicate that most of the causal links are found in Non OECD, Low income and Lower middle Income countries.FDI; Financial market, Capital markets; Credit markets;

Improving the classification of multiple disorders with problem decomposition

AbstractDifferential diagnosis of multiple disorders is a challenging problem in clinical medicine. According to the divide-and-conquer principle, this problem can be handled more effectively through decomposing it into a number of simpler sub-problems, each solved separately. We demonstrate the advantages of this approach using abductive network classifiers on the 6-class standard dermatology dataset. Three problem decomposition scenarios are investigated, including class decomposition and two hierarchical approaches based on clinical practice and class separability properties. Two-stage classification schemes based on hierarchical decomposition boost the classification accuracy from 91% for the single-classifier monolithic approach to 99%, matching the theoretical upper limit reported in the literature for the accuracy of classifying the dataset. Such models are also simpler, achieving up to 47% reduction in the number of input variables required, thus reducing the cost and improving the convenience of performing the medical diagnostic tests required. Automatic selection of only relevant inputs by the simpler abductive network models synthesized provides greater insight into the diagnosis problem and the diagnostic value of various disease markers. The problem decomposition approach helps plan more efficient diagnostic tests and provides improved support for the decision-making process. Findings are compared with established guidelines of clinical practice, results of data analysis, and outcomes of previous informatics-based studies on the dataset