Apart from exchange rate objectives which have resulted in reserve accumulation as a side effect, Asian countries have chosen explicitly to build up reserves for precautionary motives. This paper explores the issue of optimal precautionary demand for reserves by a central bank within a context...

This study empirically investigates the impacts of central government budget deficits and economic freedom on per capita real economic growth in OECD nations over the period 2006-2012. Economic growth is measured by the percentage growth rate of purchasing-power-parity adjusted real per capita...

The implications of exchange rate regimes on economic growth have received renewed attention in the aftermath of the recent global financial crisis. Creating both bivariate and tripartite regime classifications the present study examines their impact on growth for 156 nations spanning the period...

The objective of this study is to examine the impact of exchange rate on Nigeria’s trade balance. Time series data on trade balance, external reserves, exchange rate, money supply and real GDP were used in the analysis and the data were subjected to unit root tests to determine their time...

Lots of studies were produced in the past decade on the importance of the quality of the institutions for economic development. Several authors focused on the indicators provided by Doing Business (World Bank) to highlight the main factors favouring or rather limiting the economic development....

The paper investigates the relationship between export earnings instability and economic growth of the open and small developing countries which signed the Lomé Convention (ACP states). It has been empirically shown how export instability lessens the economic performance of these countries....

The recent financial crises in several emerging market economies only confirm that a satisfactory explanation of financial and currency crises remain elusive. The first-generation crisis model pioneered by Krugman is no longer compelling as many of the actual crises seem to lack the crucial...

This paper reassesses the dynamic links between trade and growth in India during the post-independence period. The main result is a short-run bi-directional relationship between exports and output growth. This finding is supported both by standard Granger causality tests, and by an alternative...

Thirlwall’s law posits that a country’s economic growth rate (relative to that of the rest of the world) depends on the ratio of its export’s income elasticity of demand to that of its imports. Empirical studies of this hypothesis have been almost entirely supportive, but we argue that the...

The trend toward privatization has been an issue of a long debate. Some reflecting ideological overtones, some having a more pragmatic concern that the private sector can deliver goods and services more efficiently and effectively. From the standpoint of reducing poverty and promoting economic...