In this thesis, I first investigate the relation between the aggregate unemployment rate and foreign direct investment (FDI) inflows and outflows. To study this relationship, I use a panel data set that contains 45 (developed and developing) countries observed from 1987 through 2008, and I employ Arellano and Bonds generalized methods of moments (ABGMM) estimation method for dynamic panel data. My results show that FDI inflows and outflows are not determinants of the aggregate unemployment rate. In addition, in line with macroeconomic theory, the previous level of aggregate unemployment has a positive impact on the current level of aggregate unemployment. Again, as macroeconomic theory suggests, my results show that per capita real gross domestic product (RGDP) has a negative effect on the current level of aggregate unemployment. Second, I study the long-run relationship between exports and per capita gross domestic product (instrumented by total population) using a panel data set of 51 countries from 1970 through 2008. To study this relationship, I employ the dynamic ordinary least squares (DOLS) estimation method. I find that the percentage of exports in nominal gross domestic products (GDP) is sensitive to changes in the populations of host countries and, hence, to the changes in …

For an introductory macroeconomics course, the discussion of historical relevance helps foster important learning connections. By comparing the Great Depression to the 2008-2009 recession, a macroeconomics instructor can provide students with connections to history. This paper discusses the major causes of each recession, major fiscal policy and monetary policy decisions of both recessions, and the respective relevance in teaching the relationship of each policy to gross domestic product. The teaching points addressed in this paper are directed towards an introductory college-level macroeconomics course, incorporating a variety of theories from historical and economic writers and data from government and central bank sources. A lesson plan is included in an appendix to assist the instructor in implementing the material.

This thesis examines the relative effectiveness of monetary and fiscal policy in Pakistan by utilizing an open economy framework. There is a great need for research about the effectiveness of macroeconomic policies as the knowledge of the relative importance of monetary and fiscal policy could prove useful to policymakers and help them understand the macroeconomic adjustment processes of these policy measures.

This research presents an in depth discussion and analysis on U.S. Japanese foreign trade. It is divided into two parts. The first hypothesis states that the appreciation of the dollar in the early eighties is positively correlated with the U.S. trade deficit, especially with Japan. The second hypothesis states that Friedrich Von Hayek's Theory of Social Order applies to the development of capitalism in that country. This can also be divided into two parts, a) this generation of Japanese consumes, saves, and invests differently than previous generations, and b) Japanese consumption and investment patterns follow U.S. consumption and investment patterns with a lag.

This thesis presents a comparison of the loan to deposit ratios of Texas banks along the Mexican border and banks located throughout the rest of the state. Mean characteristics of the two groups (i.e. border and non-border groups) are presented. A multivariate regression model is used to examine the extent to which various operating ratios of the banks and differing economic conditions of the communities in which the banks are located help explain the loan to deposit ratios of the banks involved in this study. The model incorporates data from 1984-1989. No evidence was found to refute the hypothesis that Texas border banks have a lower loan to deposit ratio than their non-border counterparts. The evidence points to a need for developmental capital, supplied by some form of development bank.

The main task of this thesis is to investigate economic implications of U.S.- China trade. The study period covers from 1972 to 1992. Data are available from International Financial Statistics, Survey of Current Business, Statistical Yearbook of P.R.China. Various hypotheses are employed to explain the basis and gain of trade, the impact of trade on both economies, and the major determinants of bilateral trade flows. This thesis contains five parts: I. Introduction; II. Outlook; III. Theoretical Analysis; IV. Empirical Study; and V. Conclusion. The major findings of this thesis are that both countries have gained advantages from trade and have also faced some unpleasant problems; several widely recognized theories serve as good approaches to understand these issues; the time series distributed lag models are helpful in explaining the determinants of trade flows.

There are various factors effecting females' wage level such as marital status, occupation, education, and experience. This paper also includes firm size and answers the questions: What effect does firm size have on female earnings? Is that effect different for black than white females?

Using the assumptions of various schools of thought on development as the theoretical framework, an attempt is made to examine the effects of foreign investment on the socioeconomic growth of 50 developing countries by means of multiple regression models that utilize some external and internal variables assumed to affect the growth rate of GNP. Results from these models indicate that new inflows of foreign investments and amounts of domestic investments are positively related to growth while accumulated stocks of foreign investments have no effect on growth. This suggests that development funds, designed specifically for increased domestic investments, would be the most effective way to increase GNP.

This thesis is focused on informal sector establishments in Kenya and how they contributes to employment creation, income generation and economic development. The research examines how the informal sector has developed between the years 1986-1989. The study indicates that the informal sector can absorb those people who are unemployed and cannot find jobs in the formal sector. The first chapter describes the definition and interpretation of the informal sector. The discussion of the related .literature, development of the informal sector, politics of the urban informal sector and controversies are described in chapter II. Chapter III describes the regional and sectoral analysis in employment generation. Chapter IV focuses on projections and promotion policies. Concluding remarks and the importance of the informal sector are represented in chapter V.

The question for this thesis is whether the static and the dynamic theory of international trade stability holds in reality in Bangladesh.

The popularity of natural rubber as an important raw material was distorted in the post-World War Two period. It received heavy competition from synthetic rubber. The main purpose of this paper is to determine and to study supply elasticity and demand elasticity of natural rubber in the case of Malaysia. The main aim of analyzing the period since 1971 is that both price and quality competitiveness of Malaysian natural rubber have drastically improved. Therefore, in order for Malaysia to maintain her position as the leading producer and exporter of natural rubber in the world, supportive policies and incentives from the government would further enhance the prospects for improvements in this industry.

In a dualistic labor market, self-employment is classified as the informal sector because its members are usually unable to find formal jobs. In big cities throughout the world it has been reported that the urban self-employed are often faced with highly restrictive government regulations in the belief that they do not contribute very much to the output. This thesis studies the factors that can explain the successes of these self-employed such as the extent of their capital, entrepreneurial experience, and education. The discriminant analysis is used throughout the study.

A set of forecast survey data is analyzed in this paper for properties consistent with the Rational Expectations Hypothesis. Standard statistical tests for "rational expectations" are employed utilizing consensus forecasts generated by an interest rate newsletter. Four selected variables (Fed Funds rate, M1 rate of growth, rate of change in CPI, and real GNP growth rate) are analyzed over multiple time horizons. Results tend to reject "rational expectations" for most variables and time horizons. Forecasts are more likely to meet "rationality" criteria the shorter the forecast horizon, with the notable exception of forecasts of real GNP growth.

This thesis attempts to measure the growth of the Bolivian informal sector. The study estimates the growth of the informal sector by defining it as the difference between the formal sector's reported real gross national product (GNP) and forecasted values of real GNP. The first chapter describes the Bolivian economy, defines its informal sector, and presents reasons for this sector's growth. Related research in informal activity, theoretical discussions, and perspectives are presented in the second chapter. Chapter III describes methodological research used in the analysis of the data. Chapter IV describes the results of the investigation. Conclusions and recommendations for the informal sector are provided in chapter V. The results show that it is possible to measure informal activity in a macro setting

The question for this thesis is whether the four major stock markets--the United States, Great Britain, West Germany, and Japan are interdependent or segmented. The study period runs from February 1979 to June 1987, with the Wall Street Journal as a source of data. The Granger causality test is used to test for relationships among the four major stock markets. The thesis is divided into five chapters-- 1) statement of the problem; 2) survey of literature; 3) methodology; 4) results and 5) conclusions. The overall findings of this thesis indicate that there are few or no comovement similarities among all the four stock markets. However, the findings do point out the significant influence of the United States stock market on the other three stock markets.

This thesis analyzes the effect of corporate tax rates on the purchasing-power-parity (PPP) doctrine. The data used to test this hypothesis are drawn from the U. S., the U. K., the Federal Republic of Germany, Canada, and Japan. The first chapter introduces the reader to the concepts of the PPP doctrine and states the hypothesis. Chapter 2 reviews the literature on the PPP doctrine. Chapter 3 specifies a model of the PPP doctrine including tax rates. Chapter 4 reports and interprets the findings. The study is summarized and conclusions are drawn in chapter 5. In this study it is shown that tax rates are significant only in the case of the U. S. dollar/Canadian dollar exchange rate.

This thesis attempts to analyze the market response of stock prices of major U.S. banks to the February, 1987 Brazilian loan default announcement. The study's general hypothesis is that the market revalued stock prices according to each bank's amount of Brazilian loan exposure. The first chapter examines the significance of the default announcement. A survey of related literature is presented in the second chapter. Chapter III specifies the methodological techniques involved in analysis of the data. Chapter IV reports the findings of the study. Conclusions about the results are drawn in Chapter V. The results indicate the market is efficient. They also suggest that individual exposure was the major determinant of bank stock price decline.

This study is directed toward the relationship between population growth and socioeconomic development in Nigeria for the period 1960-1984. A controlled population growth would positively affect every segment of the economic and social environment. With hunger and starvation, disease, poverty and illiteracy plaguing large portions of the world, Nigeria's limited resources would best be utilized if shared among a smaller population, Nigeria, like other developing African countries, does not have an official population control policy. The diversity in the Nigerian culture, the controversial nature of the subject of population control, and possibly, implementation difficulties, account for the absence of a population control policy in Nigeria. This study offers in its concluding section some policy recommendations on how to tackle Nigeria's population problem.

The main objective of this study is to analyze the demand for water in Denton. The data used for the study are obtained from the City of Denton Utilities Department, the Tax Appraisal District and government documents. The 121 households which have perfect ten years historical data of water consumption were selected to be the representatives of all households in Denton. The study reveals that the change in water consumption significantly relates to the change in marginal price. Furthermore, the weather variables also have strong effects on the water consumption, especially during summer. The coefficients of income and a "difference" variable are found to have the opposite sign but are not equal in magnitude. In fact, they should be equal in magnitude, but opposite in sign. While the estimated coefficients on all independent variables were highly significant statistically, the resulting coefficient on the house size variable was statistically insignificant in the model test. The results show that the difference variable is required in the model. It also had some effect on the water consumption. It is found that there is a small change in water consumption when the lot size is increased.

This paper analyzes the demand for water in case of a multiple-part tariff in Denton, Texas. The model used is developed from Billing & Agthe's model by using the following variables: marginal price, difference variable, tax assessed value, lot size, house size, temperature and rainfall.. The results indicate that temperature has the greatest effect on water demand, since this area is considered to be a very warm area. Also, marginal price seems to have a strong effect on water consumption indicating that customer is well-informed to a change in rate schedule. This test supports the original idea of the previous articles that the coefficient on difference variable and that on income should have the opposite sign. However, this test can not prove that those coefficients should be equal in magnitude, since the proxy of the income variable can not represent the individual monthly income. In addition, this article introduces another variable which can be a proxy of outdoor water use. That is lot size showing the effect on water demand. The last variable used in the model, house size,does not have much effect on water demand and is dropped out in the final model.

Utilizing shift/share and economic base analysis, data covering employment, income, and population are analyzed for each of the nine regions of the United States as defined by the Census Bureau. The study covers 1970 through 1984 because widespread redistribution of employment and a shift toward more service-oriented, white collar jobs occurred during this period. This study presents currents trends and recommends ways in which people may better prepare for the future.

The price elasticity of demand coefficient for a good or service is a measure of the sensitivity, or responsiveness, of the quantity demanded of a product to changes in the price of that product. The price elasticity of demand coefficients were generated for goods and services in nine different industries for the years 1972 to 1984. A simple linear demand function was employed, using the changes in the Consumer Price Index as a proxy for changes in price and Personal Consumption Expenditures, taken from the National Income and Product Accounts, as a proxy for quantity. Beta measures the sensitivity, or responsiveness, of a stock to the market. An industry average beta coefficient was generated for each of the nine industries over the time period, using the beta coefficients published by Value Line for firms which met certain criteria. In order to test the relationship between the price elasticity of demand and an industry average beta coefficient, a simple regression was performed using the beta coefficient as the dependent variable and the price elasticity of demand coefficient as the independent variable. The results broke down into 3 basic categories: those industries for which there seemed to be no relationship, those industries …

The degree of inequality present in the distribution of income may be measured with a gini coefficient. If the distribution is found to empirically fit a particular distribution function, then the gini coefficient may be derived from the mean value of income and the variation from the mean. For the purpose of this study, the Beta II distribution was used as the function which most closely approximates the actual distribution of income. The Beta II function provides the skewness which is normally found in an income distribution as well as fulfilling other required characteristics. The degree of inequality was approximated for the distribution of income from all sources and from ten separate components of income sources in constant (1973) dollars. Next, permanent income from all sources and from the ten component sources was estimated based upon actual income using the double exponential smoothing forecasting technique. The estimations of permanent income, which can be thought of as expected income, were used to derive measures of permanent income inequality. The degree of actual income inequality and the degree of permanent income inequality, both being represented by the hypothetical gini coefficient , were compared and tested for statistical differences. For the entire period …

This study is an analysis of the relationship between domestic savings and three economic indicators in the Republic of Korea during the 1950s through 1980s. While domestic saving is affected by many economic phenomena, the analysis is confined to national income, exports, and inflation. The study is divided into five chapters. These are entitled (1) Introduction, (2) Domestic Savings, (3) Income and Domestic Savings, (4) Exports and Domestic Savings, (5) Inflation and Domestic Savings. In chapter I, Korea and the Korean economy are introduced, and the scope of the study is stated. Chapter II reviews the related realm of domestic savings: definition, kinds, and determinants of domestic savings. Chapter III presents the relationship between different incomes and domestic savings, and shows non-labor income contributes more powerfully to the formation of domestic savings than labor income. Chapter IV contains effects of exports, and hypothesis testing. The effect of exports suggests that export expansion affects domestic savings positively via an increase in gross national product. Chapter V deals with the correlation between inflation and domestic savings, and its testing. The correlation between inflation and domestic savings is not generally clear except for some specific cases.