This paper evaluates the impact of international reserves, terms of trade shocks and capital flows on the real exchange …

developed and the developing countries. Our analysis will evaluate how the presence of terms of trade adjust-rent and distorted … endogenous terms of trade adjustment, there are cases in which a competitive international banking system may not revitalize … appropriate conditionality, and the presence of endogenous terms of trade adjustment puts greater weight on investment …

This paper analyzes the role of investment policies in regimes undergoing trade liberalization with policy makers of …

This paper studies the impact of aid volatility in a two-period model where production may occur with either a … modern technology to be used. The possibility of a poverty trap induced by high aid volatility is first examined in a …-period contingency fund) financed through taxation. An increase in aid volatility is shown to raise the optimal contingency fund. But if …

the correlation between volatility and investment in a set of developing countries. We uncover a statistically significant … negative correlation between various volatility measures and private investment, even when adding the standard control …. Indeed, public investment spending is positively correlated with some measures of volatility. We also use the new World Bank …

This study uncovers a statistically significant negative correlation between volatility and private investment over the … volatility measures related to domestic policies or to external factors. As the various volatility measures tend to be positively … correlated, we do not claim to identify a unique measure as the dominant source of volatility. Instead, we demonstrate that for a …

This paper examines the extent to which permanent terms-of-trade shocks have an asymmetric effect on private savings … the terms of trade in contrast to what conventional consumption-smoothing models would predict. The second part tests for … the existence of asymmetric effects of terms-of-trade disturbances using an econometric model that controls for various …

challenges associated with terms of trade and financial shocks. We confirm that active international reserves management reduces … the effects of transitory Commodity Terms of Trade (CTOT) shocks to the real exchange rate [REER] and the real GDP in … relatively high levels of external debt and in economies that are less open to trade. Fixed exchange regimes act as a substitute …

We analyze the way in which Latin American countries have adjusted to commodity terms of trade (CTOT) shocks in the …, effectively lowering its volatility. We also show that relatively small increases in the average holdings of reserves by Latin … alternative to fiscal or currency policies for relatively trade closed countries and economies with relatively poor institutions …

The Global Financial Crisis (GFC) brought to the fore the limits of the Chinese export led-growth strategy and the need … its success in manufacturing exports, natural resource imports and RMB internationalization. Using micro-level project … data and macroeconomic covariates, we find positive association of Chinese trade and financial flows with China's outward …