This paper discusses key findings of the First Review Under the Policy Support Instrument (PSI) for Cape Verde. The PSI seeks to reduce macroeconomic risks, provides a margin of safety against exogenous shocks, and addresses the prospect of a longer-term decline in highly concessional external...

Recent studies on the welfare implications of internationally mobile capital for a country employing commercial policy have been restricted to constant-returns-to-scale (CRS) production models. It is generally concluded that the pursuit of such policies is welfare-decreasing under CRS...

Using a differentiated oligopoly, this paper studies the effects of tax incentives on the structure of a domestic industry in terms of price, output, profit, and entry/exit, taking account of technology transfer through FDI. It is found that if the government of the host country provides more...

Attempts to incorporate the “new forms” of foreign investment into a unified model. Uses this simple model to show how differences in production environment in particular, are likely to affect both the timing and mode(s) that any foreign investment is likely to take. The explanatory...

Using the notions of unit root, cointegration theory and Granger-Akaike’s synthesis of modelling strategy, this paper examines the nature of stationarities, cointegration properties and Granger causal relationship between domestic savings and aid based on a sample of 27 developing countries....