Answer the questions at the back of each chapter Coursework

Answer the questions at the back of each chapter - Coursework Example (a) The world trading system would be greatly affected by the growth of Chinese economy. China is one of the largest exporters in the world. Every big company is producing its products in China due to cheap factors of production available in China. So that is why in future more and more companies would install their plants and factories in China. The balance of trade in the world would disturb due to the growth of China, because Chinese products are less expensive and people would prefer to use Chinese products. But on the other hand this increasing bubble of Chinese trade can burst if China ignores the demand and supply dynamics of the world market. (b) The world monetary system would definitely get disturb due to rapid increase in the Chinese economy. Due to increasing trade with other countries, the wealth of Chinese companies would increase and accumulate in China. This increasing wealth will where provide China plenty of investments but it would leave the world short of wealth and investment. The world monetary system can suffer a lot if not dealt with proper care. (c) The business strategies of European and the US corporations are in line with the growth prospects of China. These corporations are manufacturing in China due to less expensive factors of productions thereby increasing their profit margins. More and more companies would shift to China in the future due to rapid increase of trade of China with other countries. (d) Global commodity prices would also suffer due to the rapid growth in the trade of China with other countries. The prices of global commodities would increase due to their increasing need in China and similar countries. You are working for a company that is considering investing in a foreign country. Investing in countries with different traditions is an important element of your company’s long-term strategic goals. As such, management has requested a report regarding the attractiveness of alternative countries based on

The Pro-life Stance on Stem Cell Research Personal Statement

The Pro-life Stance on Stem Cell Research - Personal Statement Example I know that we have many more steps and strides to go in the race to discover cures for the common diseases that devastate us now. That which encompasses the cloning and reproduction of viable human embryos in the name of medical research leaves too many gaps and unanswered questions. What will be the ultimate consequences of human tampering with the highest mountain yet to be scaled remains to be seen Man, in creating through lab work what God gave through the human birth canal is at the brink of the final frontier of disaster. It is my belief that we seek to create lives that we may find ourselves hard-pressed to even call human in the end. From the small perch on which I sit, I ask myself daily how I can reconcile what I believe with what humanity demands the greater good of all. The creation of a vital life in order to destroy it for medical research is just as bad as abortion, and war, and assisted suicide. It is hard to argue with the idea that perhaps a "test tube baby" that didn't "take" should be okay for purposes of medical experimentation because that life would not be viable even if implanted in a womb and allowed to progress naturally. Yet, it is still, in my mind, tampering with another human life. Off the topic for a moment, it is for this reason that I also do not believe in vitro fertilization (IVF) in the case of two women who are legally married to one another, as this is not living the way God intended. Life as God intended it is evidenced by the very manner in which it was created and the manner in which we naturally procreate without interruption or interference by man. In this slight digression, I speak to the natural course of life as given, not to the morality of the matter with regard to intra-sexual marriage. Ethically speaking, getting back to the matter of stem cell research, the only truly redeemable idea is that of the use of embryos which do not successfully translate into full human life outside of the womb and of their own accord.

Become Legendary Essay Example for Free

Become Legendary Essay The Kobe and Lebron comparison is now probably the biggest and most controversial talk in today’s sports news. Lebron can go to the hoop with authority, while Kobe is a sleek and flashy all around shooter. Although being two of the best players in the world they are very different in the ways they play the game of basketball. Though both Kobe and Lebron went to the NBA straight out of high school, and being two of the league’s best all around players who are lethal threats which must take an extraordinary game plan to defend. With the association and contrast of the two legends, whether it is by trophies or championship titles, or all around stat freaks, these will be main contributing factors in crowning the best. Kobe Bryant is arguably one of the league’s best all around players of all time. He can drive, shoot, and his finish is one of a kind. His defense is shut down and plays with fouls as a defensive mechanism. Not only is he top class on the floor, but on the free throw line as well. Also being one of the league’s most consistent free throw shooters since entering the NBA. Kobe plays the game as if he invented it; he is one of the world’s most respected and popular players. Kobe has five NBA championships and is a twelve time NBA all star. Kobe Bryant age thirty-two is one of the most decorated players in the history of the NBA, and is a future hall -of -famer. Kobe also has had an unheard of eighty-one points in a single game. Kobe’s down side is that he is not consistently aggressive or hard going to the boards (getting rebounds or dunking). With all that said I feel like Kobe Bryant will ever be remembered as one of the elite players to ever play in the NB A. Lebron James aka â€Å"King James† is a one of a kind, straight out of high school player who took on the league with a head full of steam. One of the most athletic and young freaks the NBA has probably ever seen. He has matured from a young kid to a man in a matter of seasons, while adding a different edge to his game every year. Lebron who is seven years younger than Kobe is a seven time NBA all star, but has yet to win a single NBA championship. Coming out of high school Lebron was the first pick out of the first round  out of the NBA draft. Though Lebron the young hot shot he is seems to receive a lot of criticism because of the recent change in location to south beach. Even though Lebron is such an amazing player, the thing that hurts him the most is his shooting at times. Lebron isn’t just a basketball player; he’s a business man as well with endorsements from companies such as Nike and Sprite. Forbes magazine ranked James as the second most influential athletes in the past decade. This new kid on the block has produced points and shows what he can do every night; he puts points on the board and fans in the stands. Both of these iconic athletes are incredibly amazing in all their unique ways, whether on or off the court. Together they have won two gold medals in the Olympics for the United States. They are both the league’s present day top players who decided that college wasn’t for them. Lebron and Kobe were both first round picks in the NBA draft and the number one ranked player coming out of high school. They both are astonishingly efficient in every aspect of the offensive or defensive side of the ball. Blocking shots and playing hard noised defense is what they do best. With a shot and release like no other they are quick scorers and know how to score from anywhere and in any situation on the floor. They both bring more to the game than just skill but as leaders vocally and emotionally on their teams. Not only are they the leaders on their teams, but are the faces for basketball and the NBA everywhere in the world. In my opinion this is not even that close. James has better numbers across almost every statistical category. In clutch situations such as fourth quarter or overtime, less than five minutes left, neither team ahead by more than five points. Bryant actually has a higher field goal percentage and three-point percentage as well as more rebounds and assists per 48 minutes. James is a superior slasher, finisher, and defender as well as being stronger and more athletic. Bryant may have a killer instinct, but James has a mean streak of his own. With his unbelievable three point plays and up tempo offense. When all is said and done, Lebron James may go down as a better NBA basketball player than Kobe Bryant, but who knows, these guys are neck and neck.

Superiority of Computers to Books :: Technology

Half a century ago, people used books for everything related to education. In fact, the human's best source of knowledge and education was the book. If you wanted to look up a recipe, you opened a book. If you wanted to learn how to fix the radio on your car you opened a book called the manual. If you wanted to know Black beard's real name you will have to visit the library and go through hundreds of encyclopaedia pages before finding what you wanted. Now in the 21st century, all you need is a computer with an Internet connection and the whole world is just a click away. Slowly the computer has replaced the book in almost every way. Computers are much better than books because a modern computer can hold a billion times more information than the average 500-page book. If you wanted to do research about Martin Luther King Jr. It would take you at least an hour just to find the right book. Where as using a computer, you can find the same information in less than 5 minutes. Many people use the internet as a dictionary. finding definitions, this way only takes the time to type the word. A laptop computer equal to the size and weight of a book holds data about any topic you can think of. A book only covers a specific topic. A computer can hold much more types of data than a book. When you carry one computer, you are carrying a hundred thousand books. In her essay, Proulx mentions an airplane is the best place to read a book and asks, ?What are planes but giant flying reading rooms Many people use their laptops or the on board entertainment system on a plane rather than reading a book. But, from my experience all I seen on planes is people sleeping, people watching movies and people working on their computers. I have only seen one person reading a book- a 90-year-old who probably doesn?t know what computers are. Proulx also says we can judge what the person is like and their interests by looking at their books. We can only judge a person up to some extent when we look at their books. If we look at their software and files, we can see what they are interested in, and what kind of job they are doing, you can even know the type of music the

Research design and methodlogy Essay

This chapter presents and discusses the method of research used and the procedures utilized by the researcher in this study. It likewise includes the sources of data and the treatment of data. Methodology of the study This investigation adopted the compare and contrast qualitative research method as this is the most appropriate way in determining the effect the type of business to the success of the business. In addition, the quantitative approach was included to complement the qualitative part of this research. The Archival Research is defined by Bordens, Kenneth S. , and Abbott, Bruce B. , (1999) as a non-experimental strategy that involves studying existing records. These records can be historical account of events, census data, court records, police crime reports, or any other archived information. This qualitative study is divided by two parts. They are: 1. Compare Motherhood and Feminism in Beloved 2. Contrast Motherhood and Feminism in Beloved. And, the quantitative study focused on interviewing twenty persons who have read the Beloved novel. The researcher took pains in reading, searching and analysis of the different parts of this study. The researcher examined the comparison and contrast of Motherhood and Feminism in Beloved. The historical background is one of the main focus of this study including their success. The final phase was the analysis, presentation and the drawing of the conclusions and the recommendation. RESEARCH INSTRUMENT The primary research instrument and technique was used in the gathering of data for this study. In addition, the researcher used secondary sources taken from books and journals. These secondary sources had guided the researcher to broaden the point of understanding specifically the effect of Motherhood on Feminism in Beloved. The analysis of variance was used to compare the different topics found in Beloved and the respondents answers grouped according to Age, Gender and Highest Educational Attainment. The formula for Analysis of Variance includes Y i = e i where e i is N(0, ? 2 ) [2. 1] RESEARCH PROCEDURE The researcher seeks the primary as well as secondary materials as the best way to examine the effect of Slavery on Motherhood and Feminism in the Beloved Novel. After a through studying, reading and scrutinizing the different data, it is best to use the secondary sources as a basis for company business analysis and then coming up with the output – Results of the Effect of Slavery on Motherhood and Feminism in the Beloved Novel. Chapter IV PRESENTATION, ANALYSIS, AND INTERPRETATION OF DATA This chapter puts forward the presentation, analysis and interpretation of the data collected. The questions identified in the problem are used as the bases for the presentation. The sequence of the structure includes table, analysis and interpretation of the data of the current study. PRESENTATION OF THE STUDY PART I 1. Compare Slavery to Feminism in the Beloved novel. There are similarities between slavery and feminism in the Beloved novel. 1. 1 Both slaves and women have responsibilities in the Beloved Novel. The slaves must clean the homes and even be the unwilling sex toys of their owners. The women have the responsibility to take care of the children in the Beloved Novel. Here, the Nation Journal states about Morrisons intentions in writing Beloved, â€Å"What is this absolute obsession with violence? I mean, violence is two things. First of all, it takes a certain amount of courage, physical courage, but it also requires a certain laziness of intellect. So it’s both easy and hard. It’s such a child’s view, as is the puny language that accompanies it. I guess I shouldn’t dump that on children, but it certainly is not adult. † The language of literature that is bellicose, that is warlike, is the prized language 1. 2 Both slaves and women have feelings. For, both the slaves and the women can feel both sad and happy. Sethe was sad to feel that her child, Beloved would grow up a slave like her. Sethe felt sad when she knew she would never see her husband again. Here, Toni Morrison has conjured a way to bring back the past to the readers of this novel where slaves too have feelings . 2. Contrast Slavery to Feminism in the Beloved novel. There are differences between Slavery and Feminism in the Beloved novel. 2. 1 Slaves are the property of the owners but Women are not the property of their husbands. For the slave owners feel that they have the right to rape the women slaves because they feel that slaves as their property. The wives cannot be forced to have sex with their husbands or anyone else against their will . 2. 2 Slaves can not own their children but free women can own their children. Sethe killed Beloved because she did not want her to grow up and suffer as a slave like her. She is too possessive of her children. Women who are free, includes freed African Americans, can own their children. Beloved flirts with Paul D. because she wants to have a child of her own. She plans to take care of the child until it grows old. She wants to give her child the love and caring that her mother, Sethe, was too selfish to give her . 2. 3 Slaves have no freedom to do what they want whereas free women are free to do what they want anytime provided it does not violate the rights of others. The slaves are classified as animals in Beloved and have to right or privilege. However, free women a right to fall in love and to roam anywhere they want. This is the reason why Sethe ran away from her owners. This is also the main reason why Sethe’s husband, Paul D. and Stamp paid ran away from their owners. Sethe’s mother in law, Baby Suggs feels that she is now happy for being free to stay at her home to do whatever she wants . Being an African American herself, Toni Morrison â€Å"Historically, women in Africa have dominated the use (and instruction) of literary forms that include proverbs and folk- tales. In consequence, it is important to determine the scope of the narrative traditions in black women’s literature and to specify the nature of this relationship–to discuss olktales, for example, in conjunction with the voices of/in the tales. The tellers, the mode of telling, the complications and sometimes obfuscations of telling become critical not only to the folkloric traditions, but to the larger narrative traditions as well† PART II This quantitative essay was done in order to know how people feel about the Beloved story by African American Toni Morrison which was published recently in 1987. For the society changes and humans evolve both in mind and in spirit. The environment where one lives is called reality. And literature evolves or alters its role, its action, its form of practice just like the environment of which it is a part. The people reading the book will cherish their past where their grandparents were once slaves or owners of slaves. 4. 0Frequency 4. 1 Age Table 1 AGE of Respondents Age Range Frequency Percent Rank. 15- 24 11 55 1 25- 34 5 25 2 34- 44 3 15 3 45- above 1 5 4 Total 20 100 The above table shows that there are eleven respondents belong to the 15 -24 age level. This group represents fifty five percent of the entire respondent population. This group level is ranked 1 in the above table based on their percentage. Also, there are five respondents belonging to the 25 -34 age level. This group represents twenty five percent of the entire respondent population. This group level is ranked 2 in the above table based on their percentage. There are three respondents belonging to the 35- 45 age level. This group represents fifteen percent of the entire respondent population. This group level is ranked 3 in the above table based on their percentage. Lastly, there is only one respondent belonging to the 45 and above age level. This group represents five percent of the entire respondent population. This group level is ranked 4 in the above table based on their percentage. There are more respondents belonging to the 15- 25 age level. 4. 2 Gender Table 2 GENDER of Respondents Gender Frequency Percent Rank F 14 70 1 M 6 30 2 Total 20 100 The above table shows that there are fourteen respondents belong to the Female Gender. This group represents seventy percent of the entire respondent population. This group level is ranked 1 in the above table based on their percentage. Also, there are six respondents belonging to the Males Gender. This group represents Thirty percent of the entire respondent population. This group level is ranked 2 in the above table based on their percentage. There are more respondents belonging to the Female Gender. 4. 3 Education.

Battles of Mexicos Independence From Spain

Disconnection Between Real And Financial Spheres - Free Essay Example

Sample details Pages: 9 Words: 2813 Downloads: 4 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Did you like this example? The strong volatility that characterized financial markets all over the word, these last years, leaves to think the existence of a disparity between stock prices and their fundamental values, which gives us the presumption of a disconnection between the real sphere and the financial one (Binswanger ( 1999, 2000, 2004 )). The purpose of this paper is to focus on this possible disconnection by using the cointegration tests, to detect a possible equilibrium relation between the stock exchange returns and the real economic activity growth (measured by the GDP). The period of study lies between 1969 and 2008, according to an annual frequency of two series: the real yields (Stock Market Index return) and of GDP growth rates (real economic sphere indicator). Don’t waste time! Our writers will create an original "Disconnection Between Real And Financial Spheres" essay for you Create order To settle on the dynamics of short and long term between the stock exchange returns and the GDP growth, we used the Vector Errors Correction Model (VECM). Our results corroborate the existence of the disconnection between the two financial and economic series. Introduction Stock market prices fluctuations are certainly linked with economic ones, this fact was confirmed by the present financial and economic crisis of October 2008. Theoretically, stock price expectations are based on economic fundamentals. In a macroeconomic level, these anticipations depend largely on market expectation of future economic growth level. Indeed, financial market can be considered as a leading indicator of the economy. Consequently, stock price movement explanation must be held according to economic indicators fluctuations. The last few years have been characterized by several speculative accidents that have affected financial market all over the world. Many explanations based on fundamentals have been given essentially by Balke and Wohar (2001), Carlson and Sargent (1997), Heaton and Lucas (2000), Kopcke (1997), McGrattan and Prescott (2000). Contrarily, other authors like Binswanger (1999, 2000, 2004) and Shiller (2000), think that the stock price fluctuations can n ot be explained by fundamentals but they are the consequence of exogenous speculative bubbles or an irrational exuberance. Binswanger (2000, 2004) studied the role of real activities in speculative accidents explanation in the case of American market. He found no evidence that real economy would explain these disorders. This finding opposed to the classic learning of the actualized future cash flow approach considered by Fama (1990) as a reflection of the real economy à ¢Ã¢â€š ¬Ã¢â‚¬Å" lead Binswanger (2000, 2004) to explain this disconnection by the existence of speculative bubbles or fads. Moreover, in order to determine if recent fluctuations exhibited by stock prices are governed by fundamentals, we must, according to Binswanger (2000, 2004) approach, analyze whether stock prices carry on significant information about real economy growth rate. According to the future cash flow (dividend) actualization model, stock market prices must reflect investors anticipations abo ut future real economic activities. Consequently, fundamental value of a stock price will be equal to the actual value of future cash flows or dividends, witch are supposed to be generated by the firms real economic activity. Therefore, future cash flows must reflect real economic activity apprehended according to Morck, Shleifer and Vishny (1990) and Shapiro (1988) by industrial production or GDP. These aggregates are considered by Choi, hauser and Kopecky (1999) as proxies of firms earnings or profits. However, we note that all over the world, major transactions are motivated by speculative intentions independently from fundamentals. This makes us think, ÃÆ'   priori, that there is a disconnection between real and financial spheres. The purpose of this paper is to give and explanation to this disconnection between economic and financial spheres and to detect a possible equilibrium relation between stock market returns and real economic activity growth apprehended by the G DP. In these conditions, this study will be organized as follows: second section explore the literature studying relationship between real and financial spheres. Section three presents our empirical methodology. Section four comments the results. Section five concludes. Literature review Several studies tried to find whether recent stock price fluctuation could be conducted by fundamentals. A first approach analyses the relationship between financial assets returns and economic growth level such as Binswangers (2000). By reference to the Discounted Cash Flow approach, stock prices must reflect investors anticipations of the future economic growth level. Indeed, the fundamental value of a stock market must be equal to the future anticipated actualized dividends. These payments can so reflect the real growth level. Morck, Shleifer, Vishny (1990), Shapiro (1988) maintain that financial assets returns can be used as proxies for firms earnings and so for economic growth. Binswangers findings confirmed the strong classical relationship between financial assets returns and their consequences on the real economic growth level. Such relationship was often rejected in the eighties, where all estimations failed to find significant evidences. This failure was concomi tant to the submerging of speculative bubbles all over financial markets and stimulated the non fundamental approach. Choi and al. (1999) have studied this relationship in the case of the G-7 countries during the period 1957-1996. They have found a significant relationship between financial assets returns and economic level growth for all countries except Italy. However, this relationship was not the same in all the countries, especially in the case of the USA, where it was less significant compared to the rest of G-7 countries. This can be explained by the size of this economy significantly greater than the others. Then, because firms of those countries deal partially or totally abroad. Hence, investors do not include their national macroeconomic variables in their anticipations. For all these reasons, it seems that it is difficult to confirm this relationship in these countries. It would be more difficult to confirm it in the case of emerging economies. After the Second W orld War, the United States has experienced two periods of strong growth in their stock market. The first period lasted from 1949 until the first half of the 60s, and coincided with a period of strong economic growth. At that time, economic research had no problem to demonstrate the relationship between economic and financial spheres, using asset pricing standard models, under which financial asset prices are determined through market fundamentals. However, the second growth period began in the 80s and demonstrated how it became difficult to verify that asset prices could still be determined by fundamentals. If asset prices are determined by fundamentals, it will be possible to predict future economic activity. For example, Shapiro (1988) considers that the fundamental value of the in a company share will equal the present value of expected future dividends, which is simply a reflection of economic activity anticipated evolution, measured by GDP. Therefore, financial assets price s can be used to estimate the economic activity growth. Since then, several studies have been engaged, to examine this relationship, such as Barro (1990), Chen (1991), Fama (1990), Lee (1992), Schwert (1990 )à ¢Ã¢â€š ¬Ã‚ ¦they have concluded that much annual and quarterly stock returns fluctuations can be explained by the future estimations of real economic activity in the United States. Peiro (1996) confirmed these results in several industrialized economies, using changes in asset prices instead of yields. Furthermore, Domian and Louton (1997) have demonstrated the existence of an asymmetry in the predictability of economic growth through the stock returns. According to these authors, a negative stock return is followed by a decrease on a greater extent in the economic activity growth rate. In contrast, a low increase in the economic activity growth rate induces a positive change but in a greater extent of stock returns. These conclusions were also supported by Estrella and Mi shkin (1996), who concluded that variations in stock returns are more effective in predicting recession economic cycles, including a horizon of three quarters of the year. However, as Fama (1990) pointed, real activity change is not the only source of stock returns one. Indeed, there are three sources for this change: first, the market reaction to any anticipated cash flow based on GDP growth rate or industrial production (which is used as a proxy). Then, market reaction related to changes in the actualization rate, used to estimate the cah flow. Finally, the anticipated change in yields due to the change in time of the actualization rate. Indeed, Chen (1991), Fama (1990) consider that variations in expected returns are assumed to be estimated on the basis of variables such as dividend or interest rates spread. Furthermore, Binswanger (2004) tested whether the classical relationship between the real and the financial sphere remains valid for a time horizon greater than the per iod of two years, which has been highlighted by previous research, especially during the period of recession that characterized the late 20th century. Indeed, all studies have focused on clearly distinct periods (1954-1986 Chen, Fama 1953-1987, 1947-1987 and Lee Schwert: 1889-1988). So, Binswanger (2004) chose a study period that ranges from 1953 to 1997. The author has confirmed the findings of Fama (1990) to the United States, noting that much of the variation in asset returns can be explained by the future value of anticipated or actual economic activity growth. Methodology  : With reference to Binswanger studies (2000, 2004) for the G7 countries, the analysis of the relationship between the real and the financial spheres can be done through the study of the relationship between the dividend yield rate and the real economic activity growth rate. In our test, we will initially study cointegration between dividend yield rate and real economic activity growth rate (GDP), then we will use the Vector Error Correction Model (VECM) to identify short and long run dynamics between the studied variables. The disconnection between real and financial spheres has been confirmed in the American and G7 countries with Binswangers study. Consequently, our analysis will be limited to the Tunisian context as an emerging country case. The retained variables in our empirical analysis expressed in natural logarithm are the real stock returns rate (stock market index returns) and GDP growth rate (real economic sphere indicator), on an annual basis. The study period runs from 1969 until the year 2008. [Insert Table 1 here] The logarithm of price has a mean of 3.41 and a standard deviation of 0.46 with a fluctuation between a maximum of 4.21 and a minimum of 2.65. The GDP logarithm shows an average of 8.94 and a standard deviation of 1.24. The coefficient of symmetry (Skewness) and of flatness (kurtosis) are different from those of a normal distribution. The Jarque-Bera statistic cannot reject the hypothesis of a normal distribution for both series. Highlighting the disconnection between the real and the financial sphere 4.1 Cointegration test  : Before applying the cointegration test, it is wise to test first, the stationarity of the series. Our results based on the Phillips-Perron test, note the existence of a unit root in the series. So we deduce that both series are integrated of order one I (1) or stationary in first difference. [Insert Table 2 here] We conclude that the logarithm of prices is not stationary in level but stationary in first difference. [Insert Table 3 here] The GDP logarithm is not stationary in level but stationary in first difference. The cointegrating regression residue is not stationary at 5% level. Indeed, the t-Statitic for Phillips-Perron tests is equal to -1.688. The critical value, tabulated by MacKinnon (1991), is -3.3377 at the 5% level. Therefore, since the computed value exceeds the critical one (-1.688759 -3.3377), the null hypothesis of a cointegrating relationship is rejected at the 5% significance level, so the GDP logarithm and log price s are not Engle and Granger (1987)s cointegrated. The GDP logarithm, as the variable representing real economic activity, is not stationary in levels but stationary in first difference. Therefore, we can assume that the GDP logarithm is integrated of order one, that we note I (1). The real price logarithm is not stationary in level but stationary in first difference. Therefore, it is integrated of order one I (1). The presence of unit root in log prices and real GDP is consistent with results obtained by Binswanger (2000, 2004a) in his studies on the most industrialized countries of G7. The cointegration test between the two variables studied can be conducted either by the Johansen approach (1992, 1995), or through the two-stage test of Engle and Granger (1987). As part of our analysis, we apply the two cointegration tests of Johansen (1992, 1995) (Choi et al (1999), Kwon and Shin (1999) and Rapache (2001)) and Engle and Granger (1987) ( Cheung and Ng (1998) and Jafari and Strauss (2000)). The cointegration test under the Johansen (1992, 1995) uses a vector specification error correction introducing k lags as follows:    (1) Where, a vector of order (2 ÃÆ'— 1) variables integrated of order one. The cointegration test in two stages test is based on estimating the following regression: (2) (3) Where, and   Ãƒâ€šÃ‚  respectively denote the logarithm of real activity and of the stock prices; k is the number of lags included in the model;   and are error terms. [Insert Table 3 here] In the sense of Engle and Granger (1987), cointegration regression residuals are not stationary at the 5% significance level, but stationary at 10%. Therefore, the log GDP and the log prices are not cointegrated in the sense of Engle and Granger (1987) at 5%. To further refine our findings, it is convenient to refer to cointegration test in the sense of Johansen (1992, 1995); results are reported in the following table: [Insert Table 4 here] The trace test indicates the existence of one cointegration relationships between the logarithm of GDP and of prices. For a better understanding of the dynamics of short and long term variables studied, it is appropriate to apply the technique of error correction. These results demonstrate the disconnection between the sustainable real economy and the financial sphere in the short run, but in the long run, there is a balance between the real and the financial sphere. To further refine the econometric analysis between the real and the financial sphere, we apply a test that uses Vector Error Correction Model. 4.2. The Vector Error Correction Model: Initially introduced by Sargan (1964) and extended by Davidson et al (1978), the Vector Error Correction Model (VECM) allows modeling adjustments that lead to a long-run equilibrium situation. The VECM has cointegration relations built into the specification, so that it restricts the long-run behavior of t he endogenous variables to converge to their cointegrating relationships while allowing short-run adjustment dynamics. The cointegration term is known as the error correction term, since the deviation from long-run equilibrium is corrected gradually through series of partial short-run adjustments. It consists on a dynamic model that incorporates simultaneously short and long term dynamics. More formally, for two cointegrated variables, Vector Error Correction Model (VECM) is presented as follows: (5) (6) Where: and , are two white noises; , designs the cointegration relation residue between X and Y. The coefficients represent the retraction force to long term target, given by the cointegration relationship. We must have for i= 1 and 2 and , otherwise there will be no mean reversion to equilibrium behavior. Given the two relations (5) and (6), the Vector Error Correction Model allows to integrate the short-term dynamics (represented by the variables in first differe nce) and the long-term dynamics (represented by the cointegration relationship residue). The application of Vector Error Correction Model to our variables leads to the following results: [Insert Table 5 here] The table shows the results of the Vector Error Correction Model. The number of time lags is determined using the Akaike Information Criterion (AIC). Thus, the lags are chosen such as to minimize AIC. The coefficients of retraction force to the long-term target in relations (5) and (6) are all under zero (-0.039530 and -0.023288). In addition, the absolute values sum of coefficients (0.023288 +0.039530) equals 0.062818. According to these results, there is a mean reversion to equilibrium behavior. A long-term imbalance between the real and the financial sphere are balanced so that both series have similar trends. Conclusion Our results confirm the existence of disconnection, at least in the short run, between the real and financial spheres. The two series (log (prices) and log (GDP)) are not stationary but cointegrated. The Vector Error Correction Model indicates that there is a strong reversion to the long-run target: in short run, the financial sphere is not supported by real basis. So we can argue the disconnection between the two spheres. Such disconnection leads us to conclude that Tunisian stock market is not efficient and that stock prices do not depend on economic fundamentals, but they are the consequence of a speculative investors behavior. This conclusion corroborates that reported by Binswanger (2000, 2004a) in his studies on the United States and other most industrialized countries of the G7 group. It should be noted that this disconnection found between the real and the financial spheres, is the main argument which encouraged the emergence of speculative bubbles theory (Blanchard and Wat son (1982) Fung (1999a, 1999b), Norden and Schaller (2002), Evans (1991) and Fukuta (1998)). These results lead us to wonder whether such a disconnection could indicate the existence of a speculative bubble in the Tunisian stock exchange market and so whether this bubble is rational or irrational. After the recent economic and financial crisis of October 2008, the question of the inadequacy between real and financial spheres has more and more interested researchers to find explanation of the crisis and to prevent a future occurrence of it. Moreover, the regulation theory has submerged in order to avoid excessive risk-taking and to reduce this disconnection between the two spheres. We suggest to pay more attention to these subjects and to drive reflections around this interesting and crucial purpose that is the imbalance between finance and real activities.