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This paper examines the effects that windfalls from international commodity price booms have on net foreign assets in a panel of 145 countries during the period 1970-2007. The main finding is that windfalls from international commodity price booms lead to a significant increase in net foreign...
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that the greater (lesser) the persistence of the terms of trade shock, the more (less) the investment effect dominates the … shock …
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important source of macroeconomic uncertainty in many developing countries. Theory predicts that countries should react to …
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The objectives of this paper are to study the impact of liberalisation on trade deficits and current accounts of developing countries. It is expected that trade liberalisation would promote economic growth from the supply side by leading to a more efficient use of resources, by encouraging...
Persistent link: https://www.econbiz.de/10014070258
domestic product fluctuations and external balances. We produce a model that replicates these facts. A productivity shock in a … shock in the large country will have correlated, negative net exports. The trade balances of all other countries will …
Persistent link: https://www.econbiz.de/10011778771
Theory suggests a significant positive relationship in long-run equilibrium between net foreign assets (NFA) as a …
Persistent link: https://www.econbiz.de/10009792044
This paper explores the effect of news shocks on the current account and other macroeconomic variables using worldwide giant oil discoveries as a directly observable measure of news shocks about future output - the delay between a discovery and production is on average 4 to 6 years. We first...
Persistent link: https://www.econbiz.de/10013011202