https://www.um.edu.mt/library/oar/handle/123456789/28463 Thu, 09 Apr 2026 08:32:49 GMT 2026-04-09T08:32:49Z https://www.um.edu.mt/library/oar/handle/123456789/30446 Title: Trends and unit roots in Greek real money supply, real GDP and nominal interest rate Authors: Christos, Karpetis; Erotokritos, Varelas Abstract: This paper presents the results of a unit root investigation of Greek real money supply, real G.D.P. and nominal interest rate, after following a sequen - tial procedure which takes into consideration the effect of the possibly erroneus presence or absence of the trend and/or intercept on the augmented Dickey – Fuller unit root test procedure. Tue, 01 Jan 2002 00:00:00 GMT https://www.um.edu.mt/library/oar/handle/123456789/30446 2002-01-01T00:00:00Z https://www.um.edu.mt/library/oar/handle/123456789/30349 Title: Testing the degree of openness of the Greek capital account : a cointegration analysis Authors: Paleologos, John M.; Georgantelis, Spyros E. Abstract: The issue of capital mobility and the related issue of financial market integration is one of the most pronounced cases of contradiction between casual empiricism and conventional wisdom, in the one hand, and the results of formal empirical testing on the other. The question of the degree of capital mobility is an important one in economic analysis. This is because the assumptions one makes about the degree to which capital is mobile internationally can significantly influence the conclusions of the analysis. Over the past decade developing countries have experienced a continuing process of financial market liberalization and growing financial flows. Measuring the degree of capital mobility – defined as the degree of linkage between domestic and foreign interest rates – is central to our understanding and assessment of financial liberalization and its consequences. There are some methodological issues concerning the degree of capital mobility: The connection between capital mobility and market integration seems to be clear; if markets are integrated then capital will move more freely. Feldstein and Horioka (1980) have proposed to measure capital mobility using the degree of correlation between saving and investment rates. The Ferdstein-Horioka criterion also implies that capital mobility can be measured on the basis of differential (nominal and real) rates of interest. However, other researchers argued that the saving-investment correlation is not a proper measure of the degree of capital mobility and market integration (Goldstein et al, 1991), Frankel and MacArthur (1988). In this paper, following Edwards and Khan (1985), the domestic interest rate is hypothesized to depend on weighted average of domestic and foreign factos. The approach that was used is maximum likelihood cointegration analysis of Johansen (1988), and Johansen and Juseliu (1990). The results support the impact of both domestic and international influences on the domestic rate in the case of Greek economy. The evidence based on the Edwards and Khan (1985) approach seems to support the hypothesis of high (but not perfect) capital mobility in the Greek economy. The capital is highly mobile. Tue, 01 Jan 2002 00:00:00 GMT https://www.um.edu.mt/library/oar/handle/123456789/30349 2002-01-01T00:00:00Z https://www.um.edu.mt/library/oar/handle/123456789/30348 Title: International evidence on convergence and openness Authors: Chortareas, Georgios E.; Desli, Evangelia; Pelagidis, Theodore Abstract: In this paper we examine for both economic convergence and openness convergence across the global economy and within specific regions. We find that convergence in openness is much more profound than income convergence. Moreover, convergence within regions takes place faster than convergence across the globe. We then examine for the effects of trade openness on income convergence. We use both trade openness indicators based on actual trade volumes as well as indices that rank countries according to trade policy openness. Finally, we consider the effects of such indices on openness convergence. We discuss our results in the context of the regionalism versus globalization debate. Tue, 01 Jan 2002 00:00:00 GMT https://www.um.edu.mt/library/oar/handle/123456789/30348 2002-01-01T00:00:00Z https://www.um.edu.mt/library/oar/handle/123456789/30347 Title: Foreign direct investment : the case of Eastern Europe Authors: Lyroudi, Katerina C.; Subeniotis, Demetres N.; Georgopoulos, Nikolaos B. Abstract: The purpose of this study is to examine the market’s reaction to the announcement foreign direct investment in Eastern Europe for firms from various Western European countries and from Japan during the first merge wave after the Berlin Wall removal. The results indicated that there is either an insignificant negative reaction, or no consistent significant reaction to the announcements of joint ventures or direct foreign investment. U.S.S.R. seems to be the most risky of the target countries. The present conditions of uncertainty and high political economic risk appear to offset any favourable effects. The results may be period specific since there was an unusually high level of uncertainty surrounding the removal of the Wall. Tue, 01 Jan 2002 00:00:00 GMT https://www.um.edu.mt/library/oar/handle/123456789/30347 2002-01-01T00:00:00Z