In this paper we empirically explore the relationship between fiscal policy and economic growth in developing Asia. The region's overall level of taxes and government spending are substantially lower than those prevailing in advanced economies. Nevertheless, there are conceptual grounds why...

Broadly speaking, developing Asia and Latin America are at similar income and development levels. Relative to the advanced economies, economic growth and development are much more urgent priorities for both, yet Latin America has significantly more experience in using fiscal policy to tackle...

Production often causes pollution as a by-product. Once pollution problems become too severe, regulation is introduced by political authorities which forces the economy to make a transition to cleaner production processes. We model this transition as a change in "general purpose technology"...

This contribution provides evidence for the hypothesis that trade increases growth through its curbing effect on capital taxes. The analyzed mechanism includes two different steps and considers the critical points of both the theoretical and empirical studies in this field. In particular, the...

GMM estimation of autoregressive panel data equations in error-ridden variables when the noise has memory, is considered. The impact of variation in the memory length in signal and noise spread and in the degree of individual heterogeneity are discussed with respect to finite sample bias, using...

During the latter part of 2007 and early 2008, it became obvious that Pakistan's macroeconomic situation was deteriorating rapidly, and that unless immediate measures were taken, the country may slip into a balance of payments crisis. This paper analyzes Pakistan's current macroeconomic economic...

This paper examines the relationship between economic growth and environmental sustainability in the People's Republic of China by empirically estimating environmental Kuznets curve (EKC) models using provincial-level panel data from 1985 to 2005. The results show that there exists an inverted-U...

An integral part of global current account imbalances is the large and persistent current account surplus developing Asia has run since the 1997-1998 Asian crisis. A country's current account surplus is, by definition, equal to its net saving. The central objective of this paper is to...

The growth diagnostics methodology pioneered by Hausmann et al. (2005) is becoming a key piece of the toolkit for donor agencies in formulate their operational strategies. This paper aims at clarifying the primary objectives of the approach, highlighting some limitations for operational use. The...