This paper tried to assess the movement of real effective exchange rate and external sector development such as export, import & trade balance of Ethiopia using descriptive analysis to incorporate the two major devaluation period from the year 1985/86 to 2012/13. The result revealed that the depreciation of the real effective exchange rate improves the export performance however it doesn't discourage our import. A result even if there is higher growth of export after a depreciation of the real effective exchange rate, since the growth rate of imports outweigh, there is no improvement in the trade balance account. Thus, the paper recommends among others, Promoting import substitution strategy through subsidies to the domestic industries and reducing taxes to their imported semi finished inputs and awareness creation in favor of the home Produced substitutes should be made to reduce import expense.

This research investigates the existence of stock market integration between Turkey and the Eurozone. In this study, the performance of Turkey’s stock exchange is proxied by the BIST100, and the EURO STOXX50 is employed as a proxy for the Eurozone index. We hypothesize that there is a dynamic relationship between Turkey and the Eurozone. Methodologically, our research was conducted by employing monthly time series data obtained from EIKON datastream International. In order to demonstrate the extent of equity market integration between Turkey and Eurozone, a vector autoregression model (VAR) was utilized. According to the results, there is no co-integration between these two equity markets. This is in line with the output of residual matrix test, where the correlation between these two market indices was found to be low. However, a Granger causality test indicated that there was a low one-way contribution from Turkey to the Eurozone index during the observation period.

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