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Attracting capital and foreign exchange flows is crucial for developing countries. Yet, these flows could lead to real exchange rate appreciation and may thus have detrimental effects on competitiveness, jeopardizing exports and growth. This paper investigates this dilemma by comparing the...
Persistent link: https://www.econbiz.de/10008560428
What accounts for variations in FDI flows from advanced to developing countries? How have FDI inflows explained cross-country growth experiences? In this paper we tackle both these questions empirically for a large sample of middle and low-income countries. Two key results emerge: (i) lower...
Persistent link: https://www.econbiz.de/10008560450
This paper sets up a general oligopolistic equilibrium model with unionized labor markets. By accounting for productivity dierences, the model features prot and wage dierentials across industries. We use this setting to study the impact of trade liberalization on employment, welfare, and the...
Persistent link: https://www.econbiz.de/10008561058
Are the current account fluctuations in oil-exporting countries "excessive"? How should their real exchange rate respond to the evolution of external (and domestic) fundamentals? This paper proposes methodologies tailored to the specific features of oil-exporting countries that help address...
Persistent link: https://www.econbiz.de/10008561088
This paper presents a simultaneous assessment of the relationship between economic performance and three groups of economic reforms: domestic finance, trade, and the capital account. Among these, domestic financial reforms, and trade reforms, are robustly associated with economic growth, but...
Persistent link: https://www.econbiz.de/10008561089
as a profit tax reform, the market mechanism itself takes care of the loss of government revenue following a tariff … tariff reduction is required for an intermediate level of entry cost. If the entry cost is very small, the loss of government … revenue following a tariff reduction cannot be compensated even with a profit tax reform. Hence, the net effect of a tariff …
Persistent link: https://www.econbiz.de/10008563037
apply the actual tariff reduction rates recently negotiated between the EU and the African countries to estimate the …
Persistent link: https://www.econbiz.de/10008564993
import tariff barriers. We use seven rounds (1993 to 2002) of the Indonesian annual national household survey (Susenas), and … relate workforce participation and school enrolment of children aged 10-15 to geographic variation in relative tariff … and an increase in enrolment among 10 to 15 year olds. The effects of tariff reductions are strongest for children from …
Persistent link: https://www.econbiz.de/10008565003
This paper links firms’ endogenous quality choice to worker effort and efficiency wages. The model generates two distinct features: effort is rewarded and quality is rewarded. Then firms with higher monitoring accuracy produce higher quality and pay higher wages. When trade is opened, while...
Persistent link: https://www.econbiz.de/10010900658
The end of the ethnic conflict in Sri Lanka in 2009 generated widespread expectations of a period of sustained economic growth, building on the achievements of the liberalisation reforms sustained over three previous decades. However, recent developments have dampened that optimism, rekindling...
Persistent link: https://www.econbiz.de/10010762628