Are equity market daily price indices and returns in the major european markets european markets cointegrated? Tests and evidence.

This paper examines the relationship between the stock market price indices and index returns in three major European equity markets, FTSE100 (U.K), DAX (Germany), and CAC40 (France). Our results, obtained using a vector autoregressive (VAR) model, indicate that while the price indices of the three markets are cointegrated, returns on the indices are not cointegrated. These findings are not in agreement with the earlier studies that reported cointegration in the returns of the three indices. The sample period for the earlier studies ranges from mid-1980s to mid-1990s. Our results, using the sample period from late 1990 to early 2002, clearly indicate that there is no long run equilibrium relationship between the index returns on the three markets, although the three price indices are cointegrated.Unit root, stationarity, co-integration

Evaluating the efficiency of Latin American banks

Latin American banking sector has undergone tremendous changes over the years as a result of changes in regulation, globalization and developments in Telecommunications and Information Technology. A very important development has been financial liberalization where Latin America opened its doors to foreign banks. An important issue that needs to be addressed is whether the local commercial banks are efficient enough in their operations to be economically viable in a highly competitive environment. The objective of this study is to examine the factors behind bank profitability, following financial liberalization in five countries, Honduras, Mexico, Paraguay, Peru, and Venezuela, using 2004 financial data.Banking efficiency; financial liberalization; Latin American banking

Empirical evidence on the relationships between concentration and profitability in Latin American banking

There has been growth in globalization as a result of increased liberalization. This has also resulted in an increase in the role of financial institutions, such as banks. It is the purpose of this study to test Classen’s (2001) hypothesis that increase foreign bank presence has positive welfare implications and that the functioning of national banking markets are improved as a result. Using financial data for 2003 this paper will examine the influence of foreign bank entry on Latin American domestic markets.Latin American banking; Concentration and Profitability; Foreign Bank Influence

Evaluating the efficiency of Latin American banks

Latin American banking sector has undergone tremendous changes over the years as a result of changes in regulation, globalization and developments in Telecommunications and Information Technology. A very important development has been financial liberalization where Latin America opened its doors to foreign banks. An important issue that needs to be addressed is whether the local commercial banks are efficient enough in their operations to be economically viable in a highly competitive environment. The objective of this study is to examine the factors behind bank profitability, following financial liberalization in five countries, Honduras, Mexico, Paraguay, Peru, and Venezuela, using 2004 financial data

Are equity market daily price indices and returns in the major european markets european markets cointegrated? Tests and evidence.

This paper examines the relationship between the stock market price indices and index returns in three major European equity markets, FTSE100 (U.K), DAX (Germany), and CAC40 (France). Our results, obtained using a vector autoregressive (VAR) model, indicate that while the price indices of the three markets are cointegrated, returns on the indices are not cointegrated. These findings are not in agreement with the earlier studies that reported cointegration in the returns of the three indices. The sample period for the earlier studies ranges from mid-1980s to mid-1990s. Our results, using the sample period from late 1990 to early 2002, clearly indicate that there is no long run equilibrium relationship between the index returns on the three markets, although the three price indices are cointegrated

Are equity market daily price indices and returns in the major european markets european markets cointegrated? Tests and evidence.

This paper examines the relationship between the stock market price indices and index returns in three major European equity markets, FTSE100 (U.K), DAX (Germany), and CAC40 (France). Our results, obtained using a vector autoregressive (VAR) model, indicate that while the price indices of the three markets are cointegrated, returns on the indices are not cointegrated. These findings are not in agreement with the earlier studies that reported cointegration in the returns of the three indices. The sample period for the earlier studies ranges from mid-1980s to mid-1990s. Our results, using the sample period from late 1990 to early 2002, clearly indicate that there is no long run equilibrium relationship between the index returns on the three markets, although the three price indices are cointegrated

Empirical evidence on the relationships between concentration and profitability in Latin American banking

There has been growth in globalization as a result of increased liberalization. This has also resulted in an increase in the role of financial institutions, such as banks. It is the purpose of this study to test Classen’s (2001) hypothesis that increase foreign bank presence has positive welfare implications and that the functioning of national banking markets are improved as a result. Using financial data for 2003 this paper will examine the influence of foreign bank entry on Latin American domestic markets

Empirical evidence on the relationships between concentration and profitability in Latin American banking

There has been growth in globalization as a result of increased liberalization. This has also resulted in an increase in the role of financial institutions, such as banks. It is the purpose of this study to test Classen’s (2001) hypothesis that increase foreign bank presence has positive welfare implications and that the functioning of national banking markets are improved as a result. Using financial data for 2003 this paper will examine the influence of foreign bank entry on Latin American domestic markets

Evidence of Debt Overhang and Economic Growth: Implications for African Development

Work published in Back on Track: Sector-Led Growth in Africa and Implications for Development

Evidence of Debt Overhang and Economic Growth: Implications for African Development

Paper presented during the conference on Sector-Led Growth in Africa and Implications for Development, United Nations African Institute for Economic Development and Planning, Dakar, Senegal