The purpose of this essay is to investigate the possible economic consequences of the recent German steel subsidy program and assess to what extent those consequences conform with the objectives which motivated that program's adoption. The paper is organized as follows: Particular developments...

In the 1950s, Mexico and a number of other Latin American countries opted for a strategy of inward-oriented development aimed at accelerating the pace of industrialization. This strategy relied heavily on a process of import substitution brought about by creating a protected domestic environment...

Whether the interests of a nation are best served by maintaining fixed exchange rates or by allowing exchange rates to vary continues to be a much debated issue among economists. Most of the earlier literature on this topic focused attention on the two extremes of completely fixed exchange rates...

The elasticity of substitution concept has become one of the mainstays in the measurement of price responsiveness not only in production theory, where it originates, but also in the study of international trade. It has been applied, for example, in the context of the world demand for exports...

Most observers of economic events have noticed a considerable increase in the general volatility of prices over the last decade. An important byproduct often attributed to this increased price variability is greater uncertainty perceived by individual decisionmakers in the process of formulating...

This essay aims to provide a theoretical foundation for two widely debated issues in development economics. The first concerns a current controversy associated with the external indebtedness of developing countries. The second relates to a longer standing debate over the effects of foreign...

Recent studies offer an ambiguous picture on the effectiveness of foreign aid in strengthening the export capacity of recipient countries. Moreover, the literature on aid for trade (AfT) has often neglected that exporters in the donor countries may be among the main beneficiaries. We hypothesize...

Die meisten afrikanischen Länder laufen Gefahr, die Millennium Development Goals weit zu verfehlen. Die Vereinten Nationen fordern deshalb, die Entwicklungshilfe massiv aufzustocken, und der Afrika-Aktionsplan der G8 verspricht eine Konzentration der Hilfe auf Afrika. Vor diesem Hintergrund...

We empirically assess the determinants of India’s FDI outflows across a large sample of host countries in the 1996-2009 period. Based on gravity model specifications, we employ Poisson pseudo maximum likelihood (PPML) estimators. Major findings include: India’s outward FDI is hardly affected...