The paper reviews the cost and benefits of globalization (i.e. greater integration of national and global economies) from the perspective of India. It argues that India’s hesitant and reluctant globalization had a significant cost in terms of forgone growth, delay in the eradication of...

We develop a methodology that intuitively characterizes the choices countries have made with respect to the trilemma during the post Bretton-Woods period. The paper first outlines the new metrics for measuring the degree of exchange rate flexibility, monetary independence, and capital account...

We present a restriction on the domain of individual preferences that is both necessary and sufficient for the existence of a social choice rule that is continuous, anonymous, and respects unanimity. The restriction is that the space of preferences be contractible. Contractibility admits a...

This paper examines the link between the real exchange rate volatility and domestic investment by using the panel data cointegration techniques. In the first part of the paper, we study the theoretical link between the exchange rate, its volatility and the investment in a small open economy. The...

After the economic turmoil in 2001, the Turkish economy quickly recovered, and exhibited distinguished economic performance in successive years without any interruption. This success can be considered as a product of favourable international economic conditions, sound macroeconomic reforms, the...

This paper sets up a new economic geography model with diminishing marginal returns and examines the effect of capital liberalization on industrial agglomeration and wage inequality. The simulation results indicate that for the country with strict capital controls, capital liberalization can...

Tests for causality and rationality in the coffee futures market were carried out using data from the New York Market. Tests of causality indicated that futures prices strongly influence variations in spot price eight weeks or more to maturity. However, beginning seven weeks to maturity there...

This paper shows that export costs, tariffs, and international transport costs are all important determinants of geographical export diversification in a sample of 123 developing countries. A 10% reduction in any one of these factors produces a 5%-6% increase in the number of foreign markets...

The devaluation of the CFA Franc in 1994 generated a public investment boom in Senegal. The increase in public investment was made possible thanks to an improved budgetary situation related to the reduction in real terms of the public wage bill which had been too large for some time. The rise in...

China’s rise as a merchandise exporter in recent decades is unparalleled. Supported by a rapidly growing urban workforce, massive investments in productivity enhancing infrastructure and technologies, a range of subsidies and incentives, and a favourable external economic environment, Chinese...