A windfall of natural resource revenue (or foreign aid) faces government with choices of how to manage public debt, investment, and the distribution of funds for consumption, particularly if the windfall is both anticipated and temporary. We show that the permanent income hypothesis prescription...

In a classical article, Granger (1966) argued that the levels of most economic time series have spectra that exhibit a smooth declining shape with considerable power at very low frequencies. He termed it "the typical spectral shape of an economic variable." Granger's assertion has not been...

Until three decades ago, FDI was associated with negative perceptions, but recent experiences have brought an awareness that it stimulates the economic growth process through its positive spillover effects. The empirical study invsestigates whether FDI in fact, caused spillover effects which...

Empirical studies based on structural models have demonstrated that FDI stimulates the economic growth process of developing host countries through its positive spillover effects. In this study we empirically investigate the dynamic impact on policy variables on FDI and its spillover effects...

We employ the total factor productivity (TFP) index in growth accounting as a proxy for productivity growth to compare patterns and sources of output growth for a group of proximate countries in Asia-Pacific Economic Cooperation region.

This paper studies the effect of financial repression and contract enforcement on entrepreneurship and economic development. We construct and solve a general equilibrium model with heterogeneous agents, occupational choice and two Financial frictions: intermediation costs and financial contract...

In this paper it is argued that the domestic division of labor and trade is organized according to the same principle as the international division of labor and trade – the Ricardian comparative advantages. After all, the ultimate source of these comparative advantages is the individual. The...

The main macroeconomic challenges at the early stages of Vietnam¡¯s economic reforms were related to stability and growth. The main achievements of Doi Moi are also related to the success in meeting these two challenges: Vietnam has managed to combine high growth with reasonable price...

The macroeconomic principles behind the Swedish model were developed by two trade union economists, Gösta Rehn and Rudolf Meidner, shortly after World War II. The model’s economic and wage policy represents a unique third way between keynesianism and monetarism in its approach to combine full...