Preface

**Chapter 9 171**

**Chapter 10 191**

**Chapter 11 205**

**Chapter 12 219**

**Chapter 13 235**

**Chapter 14 251**

**Chapter 15 271**

**Chapter 16 285**

**Chapter 17 301**

Volatility Effects of the Global Oil Price on Stock Price in Nigeria:

An Econometric Investigation of Market Volatility and Efficiency:

More Credits, Less Cash: A Panel Cointegration Approach

Governance and Growth in the Western Balkans: A SVAR

Effects of Some Monetary Variables on Fixed Investment in

Efficiency of the City Councils Using Cross-Sectional Model:

Relationship between Economic Growth, Unemployment,

Determinants of Islamic Banks Distress in Gulf Council

Inflation and Current Account Balance: Theory and Case of Turkey

Challenges in Times of Change and Political Tension *by Claudio Elórtegui-Gómez, Hanns de la Fuente-Mella,*

Evidence from Linear and Non-Linear GARCH

*by David Oluseun Olayungbo*

*by Sureyya Dal*

Approach

A Study of Small Cap's Stock Indices *by Muhammad Jawad and Munazza Naz*

*by Gordana Djurovic and Martin M. Bojaj*

Selected Sub-Saharan African Countries *by Ombeswa Ralarala and Thobeka Ncanywa*

Will Malawi's Inflation Continue Declining?

*Mauricio Alvarado and Matías Guajardo*

*by Tuğba Dayıoğlu and Yılmaz Aydın*

*by Bakhita Hamdow Gad Elkreem Braima*

Countries (GCC)

**II**

*by Hopestone Kayiska Chavula*

The effect of globalization and easy access to technology initiated the transformation to an information-oriented society. This transformation means that complete and satisfactory statistical results, which can only be achieved through appropriate methods, are now a necessity. Additionally, the emergence of specialized branches led to a movement away from the stereotypical patterns and the development of new patterns that are more in line with the current economic and financial structure. Financial markets, which do not get stuck only in theoretical structure and develop in practice, play an important role in the sustainable growth of the economy. The starting point of the financial models is the uncertainty faced by investors that include the uncertainty in the behavior of and thus the uncertainty in market prices. Therefore, the existence of financial econometrics is based on uncertainty. The structure and effect of fluctuations are determined using econometrics theory in the modeling and estimation process of uncertainties in financial models. The development of econometrics that makes use of data, statistical inference methods, and structural or descriptive modeling to solve financial and economic problems has been paralleled by the increasing variety and complexity of financial products. Efforts to measure fluctuations in terms of time, dimension, and turning/breaking points in the context of financial developments and the desire to have the best return in financial market practices with the minimum loss can be counted as some of the reasons why econometrics theory develops from linear to nonlinear models. Financial market mechanisms can be better explained by the development of models in the domains of martingales and non-linear time series, the use of parametric and non-parametric estimation methods, the use of diffusion equations, and an approximation for pricing and derivatives. Gaining the ability to build and develop a model based on events/problems experienced in life is important both in terms of solving the problems and evaluating the new models/methods in the field of application. With this in mind, the models are established on real problems with the aim of developing new models and/or achieving policy proposals through appropriate analyses that would be beneficial in solving problems.

This book aims to introduce the mathematical/statistical and econometrical underpinnings of the main tools used in empirical economics and empirical finance in an effort to bridge the gap between analytic, closed-form methods, and numerical methods and also outline the econometrics models readily applicable to financial markets using linear and nonlinear approaches. The main topics are organized to gain a profound and detailed understanding of theory and methods and to understand the interplay between interrelated field techniques and modeling assumptions both for theoretical and practical applications.
