This paper uses three models of a small open economy to analyze the effects of terms of trade and exchange rate changes … factors model is developed and used to investigate how an exogenous worsening of the intern.ationa1 terms of trade affect …

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 …

contemplated a trade liberalization process that would create a low and uniform tariff structure. In this paper I review the …

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

that for most nations the adjustment has been highly recessive. Next, the potential role of trade reforms in securing the …

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 …

is positively linked with better sustainable development outcomes. The association between fiscal consolidation and … growth as well as the sustainable development indicators, however, is not clear-cut. Jointly, more tax revenues and … expenditures, together with better governance help explain the association between economic growth and inclusive development. High …

misalignment and overvaluation. The effects of terms of trade shocks on the equilibrium real exchange rate are also investigated …