Economic Growth and Unemployment Nexus: Okun’s Two-Version Case for Nigeria, South Africa and United States of America

Okun’s law in its original form was predicated on the experience in the United States of America. Some methodological refinements have been added based on studies conducted in other climes with varied results. This research investigated the applicability of this law in Nigeria, South Africa and the United States of America. The study conducted a comparative analysis of three of the versions of the law. The research employed Ordinary Least Squares method having validated it’s appropriateness with Dickey-Fuller and Philips-Perron tests. The demonstrated superiority of the dynamic version over the difference version was manifest in all the countries. The result also showed that the dynamic version of the law was applicable in the three nations while the difference version showed the lack of linkage between economic growth and unemployment only in Nigeria. Deployment of employment creative employment schemes, labour market reform and economic restructuring are recommended in the Nigerian case.  The policy makers on South Africa and USA are enjoined to pursue growth- inducing policies.&nbsp

Financial Markets Integration: Appraising the Developed and Emerging Markets Nexus

While many economists see financial globalization (financial markets integration) as critical to the development and strengthening of middle-income emerging markets, many have opined that financial integration carries huge risk that far outweighs potential benefits for most middle-income countries. This study therefore investigated the interdependence between emerging markets and developed markets. The study deployed the Diebold and Yilmaz methodological approach to investigate spill-over between markets. The research concluded that there exists interdependence between developed markets and emerging markets. The net benefits argument of financial markets held. Given increasing globalization none of the markets, whether developed or emerging is immune from the dynamics of global markets with consequential beneficial and deleterious impacts. The study recommended that emerging markets should institute reforms capable of enhancing a beneficial involvement in the global integration of financial markets. Macroeconomic reform is crucial if economies will benefit from financial markets integration. Exchange rate, inflation, fiscal deficits policies must be such that communicates macroeconomic stability, as this in turn suggests an investible territory to investors.  Keywords: Financial Markets Integration, Stock market spill overs, Spill over index, VAR, Volatility transmission JEL Classifications: C13, C23, C81 E44, N2