Market Risk Dynamics and Competitiveness After the Euro: Evidence from EMU Members

In this paper we propose an empirical model that considers theoretical facts on the relationship between real exchange rates and the net exports of the economy to supplement the interaction of a number of financial and economic factors with the stock market. We discuss the impact of exchange rate fluctuations on market risk in terms of Value at Risk (VaR). Our empirical findings show that common currency introduction produced increments in VaR whereas European stock returns are more sensitive to changes in competitiveness regarding the EMU rather than national exports. Finally, we show that the synchronisation of variation in competitiveness through the introduction of a single currency has made these changes more decisive in explaining financial market fluctuations.http://deepblue.lib.umich.edu/bitstream/2027.42/64351/1/wp916.pd

MARKET RISK DYNAMICS AND COMPETITIVENESS AFTER THE EURO: Evidence from EMU Members

In this paper we propose an empirical model that considers theoretical facts on the relationship between real exchange rates and the net exports of the economy to supplement the interaction of a number of financial and economic factors with the stock market. We discuss the impact of exchange rate fluctuations on market risk in terms of Value at Risk (VaR). Our empirical findings show that common currency introduction produced increments in VaR whereas European stock returns are more sensitive to changes in competitiveness regarding the EMU rather than national exports. Finally, we show that the synchronisation of variation in competitiveness through the introduction of a single currency has made these changes more decisive in explaining financial market fluctuations.Euro, Competitiveness, Market Risk, Net Export, Value-at-Risk, Volatility

Democracy, Finance and Development

The paper tests the hypothesis of a positive impact of democratization on growth and economic development in the sense of capabilities and improvements in well-being. We employ a probit model to estimate the probabilistic indicator for democracy for a large sample of countries. Panel regressions are applied to explain the impact on growth of political institutions (democracy), economic institutions and efficiency of financial management, along with more "traditional" factors. The empirical findings support the hypothesis of decisive role of democratic political and efficient economic institutions in stimulating economic growth. The main results also highlight the importance of effective allocation of financial resources. In addition to the growth regression results, it is argued, consistently with the capabilities approach to development by Sen, that many of the explanatory variables in the growth regression are positively related to development as capabilities enhancement. This is particularly true for democratic freedoms. Finally the problem of 'optimal' institutional development is discussed within the context of resource allocation, migration flows and political decisions.

"Democracy, Finance and Development "

The paper tests the hypothesis of a positive impact of democratization on growth and economic development in the sense of capabilities and improvements in well-being. We employ a probit model to estimate the probabilistic indicator for democracy for a large sample of countries. Panel regressions are applied to explain the impact on growth of political institutions (democracy), economic institutions and efficiency of financial management, along with more "traditional" factors. The empirical findings support the hypothesis of decisive role of democratic political and efficient economic institutions in stimulating economic growth. The main results also highlight the importance of effective allocation of financial resources. In addition to the growth regression results, it is argued, consistently with the capabilities approach to development by Sen, that many of the explanatory variables in the growth regression are positively related to development as capabilities enhancement. This is particularly true for democratic freedoms. Finally the problem of 'optimal' institutional development is discussed within the context of resource allocation, migration flows and political decisions.

An Empirical Assessment of Economic and Political Challenges of European Union Accession

The collapse of the Soviet Union was an exceptional experiment in the economic history of the world, which made the post-socialist countries the subject of various economic studies. Different researchers and organizations tend to monitor the progress of economic and institutional reforms through inventing different indexes (indicators), apparently trying to understand how to detect the end of the transition process. The European Union, opening its door to accession candidates and starting negotiations with a number of eastern European and Baltic states, was the first to rely on those assessments of progress in reforms for making decisions on the readiness of the countries in terms of economic and institutional development to become a member of the European family. This study tries to link the actual assessments of reforms (start of negotiations) and the available set of indicators to construct an empirical model. We apply statistical techniques of limited dependent variable models to reveal the most important criteria followed by the 'EU admission committee' and capture them in limited dependent variable models, which are applied to evaluate the readiness of a number of other post-socialist countries to start hypothetical negotiations with the EU. Based on available empirical results the factors captured in the model include the share of public expenditure in GDP, GDP per capita, private sector share of GDP, share of trade with EU in external turnover, democratization and inflation (macroeconomic stability). Our empirical assessments show that there are several transition economies (Albania, Armenia and Georgia), which despite not having candidate status, offer better general standing in terms of 'accession criteria' than the current candidates. This fact may suggest to policy-makers (other geopolitical conditions being equal) to consider these countries for future EU enlargement waves. Copyright (c) 2010 The Author(s). JCMS: Journal of Common Market Studies (c) 2010 Blackwell Publishing Ltd.

Democracy, Finance and Development

The paper tests the hypothesis of a positive impact of democratization on growth and economic development in the sense of capabilities and improvements in well-being. We employ a probit model to estimate the probabilistic indicator for democracy for a large sample of countries. Panel regressions are applied to explain the impact on growth of political institutions (democracy), economic institutions and efficiency of financial management, along with more "traditional" factors. The empirical findings support the hypothesis of decisive role of democratic political and efficient economic institutions in stimulating economic growth. The main results also highlight the importance of effective allocation of financial resources. In addition to the growth regression results, it is argued, consistently with the capabilities approach to development by Sen, that many of the explanatory variables in the growth regression are positively related to development as capabilities enhancement. This is particularly true for democratic freedoms. Finally the problem of 'optimal'institutional development is discussed within the context of resource allocation, migration flows and political decisions

Institutional and Financial Determinants of Development : New Evidence from Advanced and Emerging Markets

The paper tests the democratization-development hypothesis, namely that democratization has a positive impact on growth, economic development and changes in well-being. We employ a probit model to estimate the probabilistic indicator for democracy for a large sample of countries. Panel regressions are applied to explain the impact on growth of democratic political institutions, economic institutions and efficiency of financial management, along with other more "traditional" factors. The empirical findings support the hypothesis of the decisive role of democratic political and efficient economic institutions in stimulating economic growth. The main results also highlight the importance of effective allocation of financial resources. In addition to the growth regression results, it is argued, consistently with the capabilities approach to development by Sen, that many of the explanatory variables in the growth regression are positively related to development as capabilities enhancement. This is particularly true for democratic freedoms. Finally the problem of 'optimal'institutional development is discussed within the context of resource allocation, migration flows and political decision making

Institutional and Financial Determinants of Development : New Evidence from Advanced and Emerging Markets

The paper tests the democratization-development hypothesis, namely that democratization has a positive impact on growth, economic development and changes in well-being. We employ a probit model to estimate the probabilistic indicator for democracy for a large sample of countries. Panel regressions are applied to explain the impact on growth of democratic political institutions, economic institutions and efficiency of financial management, along with other more "traditional" factors. The empirical findings support the hypothesis of the decisive role of democratic political and efficient economic institutions in stimulating economic growth. The main results also highlight the importance of effective allocation of financial resources. In addition to the growth regression results, it is argued, consistently with the capabilities approach to development by Sen, that many of the explanatory variables in the growth regression are positively related to development as capabilities enhancement. This is particularly true for democratic freedoms. Finally the problem of \u27optimal\u27institutional development is discussed within the context of resource allocation, migration flows and political decision making.本文フィルはリンク先を参照のこ

Democracy, Finance and Development

The paper tests the hypothesis of a positive impact of democratization on growth and economic development in the sense of capabilities and improvements in well-being. We employ a probit model to estimate the probabilistic indicator for democracy for a large sample of countries. Panel regressions are applied to explain the impact on growth of political institutions (democracy), economic institutions and efficiency of financial management, along with more "traditional" factors. The empirical findings support the hypothesis of decisive role of democratic political and efficient economic institutions in stimulating economic growth. The main results also highlight the importance of effective allocation of financial resources. In addition to the growth regression results, it is argued, consistently with the capabilities approach to development by Sen, that many of the explanatory variables in the growth regression are positively related to development as capabilities enhancement. This is particularly true for democratic freedoms. Finally the problem of \u27optimal\u27institutional development is discussed within the context of resource allocation, migration flows and political decisions.本文フィルはリンク先を参照のこ