Several studies have suggested the possibility of reverse causation in the ‘democratic peace’ relationship: that the well-known extreme rarity of wars between democratic nations may be partially or wholly explained by a negative impact of war on democracy. Three kinds of war-on-regime effects are discussed. Anterior effects are regime changes that occur in preparation for wars; concurrent effec...

This paper analyzes empirically the effect of crude oil price change on the economic growth of Indian-Subcontinent (India, Pakistan and Bangladesh). We use a multivariate Vector Autoregressive analysis followed by Wald Granger causality test and Impulse Response Function (IRF). Wald Granger causality test results show that only India’s economic growth is significantly affected when crude oil pr...

This paper attempts to examine the linkages among inflation, unemployment and crime rates in Malaysia. The sample period covered annual data from 1970 to 2006. The Bartlett corrected trace test proposed by Johansen (2002) was employed as being appropriate for small sample study. The corrected trace test affirmed the existence of long run equilibrium relationship between crime rate and its deter...

In this paper we introduce a new nonparametric test for Granger non-causality which avoids the over-rejection observed in the frequently used test proposed by Hiemstra and Jones [1994. Testing for linear and nonlinear Granger causality in the stock price-volume relation. Journal of Finance 49, 1639–1664]. After illustrating the problem by showing that rejection probabilities under the null hypo...

The interrelationship between international stock markets has been a key study area among the financial market researchers for international portfolio management and risk measurement. The characteristics of security returns and their dynamics play a vital role in the financial market theory. This study is an attempt to find out the dynamic linkages among the equity market of USA and emerging ma...