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RESUMo: Este estudo investigou o impacto do crescimento econômico sobre as reservas internacionais brasileiras no contexto do Mecanismo de Correção de Erros, utilizando dados do período 1980-2014. os resultados revelam que o crescimento econômico é altamente significativo. A partir da estimativa do nosso modelo, argumentamos que o crescimento econômico e as reservas internacionais têm relação positiva de longo prazo. Error correction estimates validated our model for error correction term is negative and statistically significant. Além disso, nosso modo sugere que o crescimento econômico também tem relação de curto prazo. A velocidade de ajuste é mais de 40%, indicando que o termo de correção de erro corrige o desequilíbrio do ano anterior à taxa de 40,4%. PALAVRAS-CHAVE: Brasil; crescimento econômico; modelo de correção de erros; reservas internacionais.ABSTRACT: This study investigated the impact of economic growth on Brazilian international reserves holdings in the context of Error Correction Mechanism using data over the 1980-2014 period. The results reveal that economic growth is highly significant. From the estimation of our model, we argue that economic growth and international reserves have positive long run relationship. Error correction estimates validated our model for error correction term is negative and statistically significant. Besides, our model suggested that economic growth has short run relationship too. The speed of adjustment is more than 40% which indicated that error correction term corrects previous year disequilibrium at the rate of 40.4%.

World international reserves holdings have accelerated sharply in recent times. Countries particularly developing ones are competitive enough to hoard these reserves and top 10 major holders are mostly from Asia. Interestingly India comes only ninth among them. Developing countries, particularly India, are in line to hoard foreign reserves and there are certain factors that affect international reserves holdings. This study analysed the impact of few macroeconomic factors on these reserves. Augmented Dickey Fuller (ADF) and Phillips-Perron (PP) tests were employed to check the stationarity of the variables on the time series data that were of annual frequency. It was found that all variables were co-integrated signalling long-run relationship. Error correction mechanism (ECM) was implemented to get short-run dynamics for which a negative relation was established for trade openness (TRDOP) which contradicts previous studies. The negative relationship of TRDOP with international reserves in India could be due to the outcome of sustained trade deficits of Indian balance of payments. The economic growth variable exhibits a positive relationship which is consistent with previous studies. All variables were found significant at a 5 per cent level. The ECM suggested the same results as its long-run counterpart.

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Capital structure is a very significant area in strategic financial decision making of firms. Several factors, both internal and external, influence a firm's choices of capital structure. It is found that the research on this topic has mainly covered industrialized countries. Very little is known about the decision-making process on capital structure of firms in developing countries. The aim of this study is to investigate for the period 2000-2013, using panel data, the role of long-run effect of country-specific factors, such as prime lending rate, rate of inflation, gross domestic product (GDP) growth, size of capital market, corporate tax and civil unrest on capital structure choices among Sri Lankan firms listed in Colombo Stock Exchange (CSE).