This paper contributes to the empirical literature by investigating trade globalization and financial globalization as channels of inequality within South-East Europe and the Commonwealth of Independent States (CIS) countries from 1992 to 2007. In addition, the paper uses KOF (2010) index to measure the overall impact of globalization on income inequality in South-East Europe and the CIS countries. To overcome the limitations of the least squares dummy variables (LSDV) model, Parks method is used. The paper has two results. The first result is that both trade globalization and financial globalization deepen the income inequality within South-East Europe and the CIS countries. The second result is that the overall impact of globalization have adverse effect on inequality within South-East Europe and CIS countries from 1992 to 2007. These results support the hypothesis that globalization widens the income inequality within countries.

Based on the recent developments in market microstructure and applications of nonlinear dynamics and chaos theory to financial time series, the subsequent article questions the validity of traditional methods used to test the efficient market hypothesis. In particular, it emphasizes the invalidity of unit roots tests since they are not predictability tests.

Purpose This paper aims to compare the effects of Islamic and commercial banks on economic growth among the Gulf Cooperation Council (GCC) countries during 2001–2009 (before and during the financial crisis) and 2010–2017 (after the financial crisis). Design/methodology/approach The authors use a cross-sectionally correlated and timewise autoregressive (CCTA) model. The authors also extend the theoretical endogenous growth model developed by Pagano (1993) by introducing the developments in Islamic and commercial financial markets. Findings The authors find that Islamic banks fueled economic growth more than conventional banks before and after the financial crisis. The authors conclude that finance is a major determinant of economic growth, but finance does not follow economic growth. The results show that the ethical principles of Islamic finance can positively affect economic growth. Originality/value The authors contribute to the empirical literature first by examining feedback causality and cointegration between the banking sector and economic growth by examining the impact of the interaction between the banking sector and rule of law on economic growth in the GCC countries instead of a single country, second by providing both of the theoretical and empirical analysis and third by distinguishing between Islamic and conventional banks.

No abstract

No abstract

This article investigates the impact of foreign direct investment (FDI) on the technology gap between countries in sub-Saharan Africa (SSA) and the Organisation for Economic Co-operation and Development (OECD), against the backdrop of relatively weak industrial performance of SSA. OECD is used in order to measure how SSA's competitiveness compares with the more advanced economies. The article further examines how the technology gap, in turn, exacerbates international business capabilities of SSA and draws out some policy implications. Using a panel data regression model, the article finds that FDI inflows have had relatively little impact on SSA's industrial capacity development and global competitiveness, and, indeed, widened the gap between SSA and major developed economies.

No abstract

No abstract