International Macroeconomics with Applied Panel Cointegration Methods: Two Empirical Essays

Abstract:This book brings two empirical essays together on international macroeconomics, more specifically in international finance and trade. The aim of book is two-fold. First, the book investigates two per se interesting questions on international finance and trade which are: why wage differences occur across countries and whether foreign direct investment (FDI) triggers productivity and economic growth in host countries. Second, the book uses recently developed panel cointegration methods in analyzing these two separate questions. Therefore, the book makes its contribution both empirically and methodologically to international macroeconomics. At the end of the book, interested readers would be able to follow the steps we use for panel cointegration analysis from scratch and would apply this methodology to their own research projects.

ISBN:978-3-8473-3604-4

Publication year:2012

Keywords:Foreign Direct Investment, Economic Growth, Cointegration, Balassa-Samuelson Hypothesis, Real Effective Exchange Rate, Panel Estimation, Productivity, International Macroeconomics