In this paper, the author analyzes the argument that export subsidies are less inflationary than devaluation in a fairly general dynamic model of the small open economy. In the benchmark case where real output is constant, export subsidies never outperform devaluation when the two instruments...

In this paper, the author explores the conditions under which favorable export shocks produce export-led growth in a three-sector, three-factor, general equilibrium model that allows for endogenous capital accumulation. The export shock takes the form of either a resource discovery or an...

This paper compares the alternative strategies of import liberalization and export promotion in a dynamic general equilibrium model in which underemployment exists and capital accumulation is endogenous. The short- and long-run effects upon aggregate capital accumulation and underemployment are...