We assess the determinants of Chinese direct investment in Africa compared with those of global FDI. We find that economic size and macroeconomic stability are positively correlated with Chinese and global FDI in Africa. Institutional variables, such as accountability and rule of law, are not...

This paper analyses policy interdependence under flexible exchange rates and its implications for middle-income countries in the Pacific area. In the first part of the paper, the consequences of strategic behavior among industrial countries are illustrated by means of a simple diagram. It is...

Portuguese Abstract: António Manuel Pinto Barbosa (1917-2006), incluído entre os “Cem portugueses que moldaram o século XX” no Expresso Revista foi biografado por João César das Neves e Francisco Azevedo e Silva num livro publicado em 1999, cujo capítulo 7 o intitula “Decano dos...

This paper analyzes the macroeconomics of currency inconvertibility, building on the role of relative prices in a portfolio balance model. The relationship between black markets for foreign exchange and smuggling is first analyzed from the perspective of an individual importer. According to the...

Globalisation, governance and economic performance affect each other in very complex mutual relationships. In this paper, we establish a clear and well-circumscribed hypothesis: “is there an effect of globalisation on governance?” To test this hypothesis or, even more specifically, to test...

The so-called “accession economies” preparing to enter the European Union are experiencing increased inward capital flows based upon positive interest spreads and expectations of currency appreciation. While the authorities of these countries have tried to manage these flows and to prevent...

Portuguese Abstract: Ao longo de 100 anos, o recurso da República a mercados financeiros externos, maisou menos articulado com a Organização Económica e Financeira ou o Fundo MonetárioInternacional, permite retirar lições que continuam relevantes. Tendo-me sido facultadoselementos...

This paper derives optimal weights for current-account and reserve indicators for adjusting the exchange rate (a "crawling peg"). Keven (1975)showed that use of a current account indicator alone would not stabi1iereserves, while a reserve indicator results in unstable fluctuations in the...