This study examines the dynamic linkages between the major equity markets of the world (USA, Japan and Britain) and the emerging markets of South-East Europe (Croatia, Slovenia and Hungary). In particular, we discuss possible differences between their interdependences during the period of the dot-com speculative bubble, as well as during the period of the existing financial crisis caused by deflation of the global “real-estate” bubble. For the purpose of this study, we perform three types of analysis. Firstly, we investigate the long-run relationships between indices by using the Johansen cointegration test. Secondly, we investigate both the short-term and long-term movements in equity markets, modelling them with a VECM. Thirdly, we test for causality between the series by using the Granger causality test. A conclusion is finally drawn that the South-East Europe equity markets have become more integrated with global markets and that they offer limited potential in diversifying the risks.

An efficient real-time implementation of digital filtering algorithms using a multiprocessor system in a ring network is investigated. This method is based on a parallel block processing approach, where a continuously supplied input data is divided into blocks, and the blocks are processed concurrently by being assigned to each processor in the system. This approach requires only a simple interconnection network and reduces significantly the number of communications among the processors, making the system easily expandable and highly efficient. In addition, various digital signal processing algorithms can be implemented on the same multiprocessor system. The data dependency of the blocks to be processed concurrently brings on dependency problems between the processors. A systematic scheduling method has been developed by using a precedence graph for the analysis of the dependency relation. Methods for solving the dependency problems between the processors are also investigated. Implementation procedures and results for FIR, recursive, and adaptive filtering algorithms are illustrated.>