Priced level, slope, and volatility risk factors recently proposed in the finance literature help explain long-standing puzzles related to the cross-section of carry trade returns. In this paper, we examine whether the information contained in these global factors allows foreign exchange market speculators in individual currencies to successfully time the direction of their carry trades, both w...

This paper investigates international technology diffusion through trade and patenting in a sample of 48 countries for the period 1980 – 2000. We divide the sample in three income groups to detect different patterns of technology absorption. Our results show that rich countries benefit from domestic technology and foreign technology embodied in imported capital goods, middle-income countries en...

This paper reassesses the burden of the current U.S. international tax regime and reconsiders well-known welfare benchmarks used to guide international tax reform. Reinventing corporate tax policy requires that international considerations be placed front and center in the debate on how to tax corporate income. A simple framework for assessing current rules suggests a U.S. tax burden on foreign...

This paper explores a model of bond prices where agents have diverse prior beliefs about domestic and foreign inflation. In the long run, the foreign exchange forward premium reflects expected differences in inflation, but in the short run, it depends upon the diversity of prior beliefs. If some people have diffuse priors about a country’s inflation process, then its currency commands a forward...

In a managed floating exchange rate regime, one of the most important issues is the degree to which the monetary authorities intervene in the foreign exchange market.  The appropriate level of intervention in the foreign exchange market can be discussed in a framework which emphasizes the trade-off between changes in the country’s level of international reserves and minimizes the country’s real...

Increase in the exchange rate may not always promote export of non-oil production and exports of various goods; rather they might have different reactions to the exchange rate. Hence, in this study we tried to examine the effect of real effective exchange rate on Iranian pistachio export. The required data were collected from statistical yearbook of Iran's foreign trade, statistical yearbook of...

This paper develops a model of the black market for foreign exchange in which black market currency is demanded and supplied by tirms engaged in smuggling. It is demonstrated that quotas or foreign exchange rationing are not necessary to induce the coexistence of legal and black foreign exchange markets. Variants of the model analyze the implications of capital flight, unbalanced trade, quotas,...

When asset returns are normally distributed the risk of an asset over a long return interval may be estimated by scaling the risk from shorter return intervals. While it is well known that asset returns are not normally distributed a key empirical question concerns the effect that scaling the volatility of dependent processes will have on the pricing of related financial assets. This study prov...

This study investigates the impact of investment on the economic growth of Pakistan. The data used in this study were collected from the period of 1981 to 2010. Multiple regression technique is used to analyze the relationship between dependent variable (gross domestic production) and independent variables (public investment, private investment and foreign direct investment). It is concluded al...