This study investigates to causality between crude oil prices and exchange rates in Romania employing monthly data from the beginning of floating exchange regime for November 2004 to December 2011. The study benefits from the recent advance in the time series econometric analysis and carries out non-linear causality and frequency domain causality tests. According to nonlinear causality test results there is no causality between the variables. Results show that frequency domain causality results slightly differentiate from the nonlinear causality analysis and imply that there is a causality running from real exchange rate to real oil price on the mediun and long run.
Article HistoryThe relationship between domestic savings and investments has become one of the most important issues discussed in economic theory with globalization of national financial markets. Is really domestic investment financed by global funds or domestic savings are still an important fund source for domestic investments? In this study, the relationship between savings and investments between years 1995 and 2014 is tested by panel data method in the transition economies (Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia, Slovenia, Romania, Bulgaria) transited from the central planning to the free market economy. As a result of the empirical analysis, Feldstein-Horioka puzzle is not valid for most of the transition economies thanks to financial funds came from European Union's development funds.Contribution/ Originality: This study contributes to existing literature in two ways. First of all, by examining transition economies in Eastern and Central Europe, we test the effect of foreign direct investments coming from Western European economies. Secondly, we employ numerous econometric analysis methods in order to obtain more robust results.
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