The aim of this work is to analyse the general equilibrium effects of terms of trade shocks in exportable sectors under particular assumptions about labour market. The model used is based on the Blacke et al. (1995) model of the Mauritian economy, modelled as consisting of three productive...

The expansion and diversification of international trade has meant, for many countries, that changes in the relationship between domestic and foreign prices have greatly increased importance. This article identifies the weaknesses of the terms of trade, the usual measure of price conditions in...

This study addresses the strategies and the factors of agricultural export performance in Africa compared with other regions, especially Asia. Regarding the figures of agricultural export performance across these regions, the study finds that agricultural export commodities, either primary or...

This paper studies the welfare implications of temporary foreign aid in the context of a simple two-country model of trade. In addition to its usual effects, a transfer of income in one period is assumed to influence the preferences of the recipient country in the following period. The implied...

Trade liberalization is often met with sharp opposition. Recent examples include the so-called "Bolkestein" directive, which allows service providers from a given EU member to temporarily work in another member country. One way to view such a reform is that it simply widens the range of goods...

This paper shows that the conditions under which inflation-targeting interest rate rules lead to equilibrium uniqueness in a small open economy in general differ from those in a closed economy. As the monetary authority adjusts nominal interest rates in response to inflation, the real interest...

This paper investigates the international transmission of productivity shocks in a sample of five G7 countries. For each country, using long-run restrictions, we identify shocks that increase permanently domestic labor productivity in manufacturing (our measure of tradables) relative to an...

Using vector autoregressions on U.S. time series, we find that technology shocks induce an ‘S’- shaped cross-correlation function for the trade balance and the terms of trade (S-curve). In calibrating a prototypical international business cycle model to match the S-curve under complete and...

This study analyzes the impact of trade on wages in the context of the specific factor model by focusing on the link between trade and the average real wage. A recent paper by Jones & Ruffin (2008) shows how one can use the specific factor model to predict how labor should fare from an...

This paper augments the existing literature on trade and child labor by exploring the effects of terms of trade changes in the context of a three good general equilibrium model, where one of the goods is a non-traded good. We find that under quasi-linear preferences the effect of the terms of...