Bogdan Dima

Immigration and trade

Abstract This paper investigates the relationship between intra-industry trade (IIT), horizontal IIT, vertical IIT (VIIT) and immigration flows using a gravity model for the period 1995-2008 amongst Portugal and European Union’s Member States (EU-27). Using a panel data approach, the results show a positive correlation between immigration and IIT. These outcomes indicate that the immigration can reduce transaction costs between home and host country. We also consider the economic dimension which appears to exercise a positive effect on trade. Our research confirms the hypothesis that there is a negative effect of transportation costs on trade.

A wavelet analysis of capital markets' integration in Latin America

The continuous wavelet transform analysis may provide a rich and flexible framework for the analysis of time series which exhibit less stable statistical properties, such as the ones describing the dynamic trajectory of capital markets. In contrast to the Fourier analysis, wavelet transform preserves information on both time and frequency. We provide a summary of the most important features of this framework. By involving the concept of coherence as well as its partial and multiple forms, we analyse the connections between Santiago Stock Exchange, Mexican Stock Exchange and BM&FBOVESPA São Paulo Stock Exchange, for a time span which covers the 23 September 2003–12 March 2014 period. We highlight the existence of several significant forces of regional integration and of a short- to medium-run synchronization process between these markets. We conclude that deeper structural and institutional reforms are required in order to enhance the sustainable development and more profound integration of these markets.

New empirical evidence of the linkages between governance and economic output in the European Union

This paper uses data for the 27 Member States of the European Union (EU) from 2000 to 2010 to support the thesis that a positive and significant correlation exists between a nation’s quality of governance and its economic output. To achieve this goal, the elements of governance that have been reported by the Worldwide Governance Indicators project are considered. Four individual indicators for the quality of policies and institutions and a global indicator of governance quality are constructed. We estimate that, for our database, a standard deviation shock in these indicators causes changes between 0.03-fold and 0.05-fold in income per capita.

Does rule of law support the capital market

Abstract By using data for 45 countries, for a time span between 2009 and 2014, the present paper supports the thesis of a positive and significant correlation between the rule of law and capital market development. In order to achieve this goal, the Rule of Law variable reported by Worldwide Governance Indicators is considered. The relationship remains robust even if control variables such as other legal system variables, including protection of minority investors, enforcing contracts or strength of legal rights of borrowers and lenders as well as initial levels of market development, economic growth, market liquidity, domestic credit to private sector and foreign direct investments are considered.

Policies for Happiness in the Global Village

Abstract This article employs three different measures of life satisfaction viewed as proxy for social utility, in order to test for the possible non-linear interactions between the quality of public governance, as reflected by the World Bank indicators, and globalization, as captured by the KOF index, for a dataset of 99 countries for a time span between 2001 and 2010. We conclude that efficient and trustworthy public policies may enhance life satisfaction. Moreover, there may occur a synergy effect between ‘good’ governance and globalization (especially for those components describing social globalization), while there is no substitute for the failure of public policies, in terms of human development and growth (with the effects on human development being substantially more important than those corresponding to the increase in national wealth).

New Empirical Evidences on the Linkages between Governance and Growth

By using data from 145 jurisdictions, for the time span 2002-2009, the present paper supports the thesis of a positive and significant correlation between governance’ quality and economic growth. In order to achieve this outcome, the elements of governance reported by Worldwide Governance Indicators World Bank’ project are considered and a global indicator in a principal components analysis framework is constructed. Based on this estimator, we identify a clear pattern of the benefic impact of “good governance” on growth, by involving a GMM-System estimation. This pattern appears robust to the check for governance endogeneity and to the changes in the estimation methodology.