This paper asks how Asia should prepare for the disorderly correction of global imbalances. It recommends tightening monetary policy and allowing Asian currencies to appreciate as a way of achieving a better balance between internal and external demand. Leaving the overall level of demand...

Exchange rate misalignment may exacerbate the costs of transition for the former socialist economies. We examine the exchange rate policies of Poland, calculate the real exchange rate based upon the CPI, PPI, wage rates and profits and then calculate misalignment. Purchasing power parity...

This paper attempts to investigate the effect of FDI inflow and FDI outflow on the GDP of Bangladesh and India. For this purpose, we used panel data over the period of 2000-2019. First of all, we built our regression model from the basic regression model. The variables included in this model...

This paper develops a fully-endogenous, variety-expansion growth model with firm-specific quality heterogeneity, limit pricing, and an endogenous distribution of markups. Trade induces only firms with high-quality products to export, whereas firms with low-quality products serve only the...

Productivity growth has flat-lined in most economies despite rapid advances in technology. Economists suggest competing explanations for this paradox. Some argue the current stagnation will persist given deep structural challenges, arguing that recent technological advances are no match for...

This paper studies the linkage between international trade and income convergence across countries. Different theories offer conflicting predictions regarding how they might affect each other. In the existing empirical literature estimating the trade impact on income convergence, a long-lasting...

This study aims to show the direction of causalities between imported production goods (investment and intermediate) and foreign exchange rate, export, and gross national product, between export and gross national product (GNP) during import substitution and export oriented industrialization...

This study investigates the rising role of China's domestic market expansion from 1995 to 2011 in the world economy's growth. China maintained high domestic expenditure growth during the entire period, with even bigger increases in the last years, when the global financial crisis and subsequent...

Foreign driven medium-term oscillations that originate from uctuations in technological frontier countries gained widespread attention among policymakers. To study this phenomenon in the context of domestic and other foreign drivers of the euro area business cycle, we develop a medium-scale,...

We construct a dynamic Heckscher-Ohlin model in which the initial distribution of production factors across economies makes factor price equalization impossible. The model produces dynamics similar to those of the neoclassical growth model. However, free trade prevents identically parameterized...