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PurposeIn this paper we examine the validity of the J-curve hypothesis in four Southeast Asian economies (Indonesia, Malaysia, the Philippines and Thailand) over the 1980–2017 period.Design/methodology/approachWe employ the linear autoregressive distributed lags (ARDL) model that captures the dynamic relationships between the variables and additionally use the nonlinear ARDL model that considers the asymmetric effects of the real exchange rate changes.FindingsThe estimated models were diagnostically sound, and the variables were found to be cointegrated. However, with the exception of Malaysia, the short- and long-run relationships did not attest to the presence of the J-curve effect. The trade flows were affected asymmetrically in Malaysia and the Philippines, suggesting the appropriateness of nonlinear ARDL in these countries.Originality/valueThe previous research tended to examine the effects of the real exchange rate changes on the agricultural trade balance and specifically the J-curve effect (deterioration of the trade balance followed by its improvement) in the developed economies and rarely in the developing ones. In this paper, we address this omission.

Abstract This paper examines profit rate (rates of return to capital) convergence in OECD economies in the periods of 1960-2016 and relevant sub-periods. It also performs comparison of profit rates convergence in selected developed and developing economies, using the data for 1973-2003 period. Economy-wide, productive economy and manufacturing rates are estimated and three convergence concepts are considered (beta, sigma, and stochastic convergence). We use a combination of cross-sectional and univariate time series models and density distribution analysis. For each profit rate measure, a strong evidence of beta convergence is provided. In contrast, sigma convergence is indicated only in the case of productive economy profit rate; while in other cases, sigma divergence or the absence of either convergence or divergence are likely. Stochastic convergence is present in a smaller number of economies and is confined to productive economy and manufacturing. The comparison of convergence dynamics in developed versus developing economies confirmed beta convergence in both groups and for their aggregate, but did not establish sigma convergence, given the significant diversity of economies and their different economic trajectories.

This paper examines Wagner hypothesis of the growth of public expenditure alongside the growth of economic activity for a panel of 28 European economies during the 1995-2018 period. The hypothesis is verified using Pesaran (2007) panel unit root and Westerlund (2007) cointegration tests that account for cross-sectional dependence in the series, and three panel causality tests (Toda-Yamamoto, Dumitrescu-Hurlin and Juodis-Karavias-Sarafidis) that are suitable for mixed order of series' integration, heterogeneous balanced panels and cases of limited evidence of cointegration. The empirical results suggested that expenditure and output variables were non-stationary in levels and stationary in the first differences; the cointegration among the variables was present; the causality was principally uni-directional (from output to public expenditure), in line with Wagner's hypothesis, or bi-directional; the causality from public expenditure to output along Keynesian lines was limited.

Abstract. The paper considers public goods in the realm of international governance, provides a framework explaining their provision, and applies it in the analysis of the trade policymaking in the GATT/WTO. International governance regime is seen as a public good; it is conceptualized as an equilibrium state, one where the extent of ideational and material conflicts, incongruities in policy mechanisms and the lack of institutions are substantially minimised. Such state is brought by policy entrepreneurship on the part of multiple actors. Three generic entrepreneurial functions (policy leadership, innovation and facilitation/coordination) are identified. Successful equilibration is characterized by the complementarity of entrepreneurial functions, as well as by the persistence and ingenuity of entrepreneurs in selecting and using specific means and instruments of entrepreneurship. Policy entrepreneurship is considered crucial in several areas, including problem framing, advocacy and coalition building, policy experimentation, and creation of the analytical instruments. It is also salient in moderation of conflicting positions, exercise of influence and management of the policy process.Keywords. Entrepreneurship, Public goods, Trade, International governance.JEL. F13, F50, H41, L26