International Economics Commons^™

International Reserves And Rollover Risk, Javier Bianchi, Juan Carlos Hatchondo, Leonardo Martinez

Leonardo Martinez

No abstract provided.

Why The World Needs A Reserve Asset With A Hard Anchor, Warren Coats, Dongsheng Di, Yuxuan Zhao

Warren Coats

From the 1970s, the global currency system has two features: the use of one or a few sovereign currencies as the global reserve asset and the floating exchange rate regime between major currencies.This paper points out that the costs of the dollar’s use as an international reserve currency exceed the benefits for both the US and the rest of the world. These costs include the exporting of American manufacturing as a byproduct of its current account deficit needed to supply its currency to the rest of the world. In addition to the detriment to trade from unpredictable exchange rate fluctuations, …

Debt Dilution And Sovereign Default Risk, Juan Carlos Hatchondo, Leonardo Martinez, Cesar Sosa Padilla

Leonardo Martinez

No abstract provided.

Fiscal Rules And The Sovereign Default Premium, Juan Carlos Hatchondo, Leonardo Martinez, Francisco Roch

Leonardo Martinez

No abstract provided.

Holes In The Dike: The Global Savings Glut, U.S. House Prices And The Long Shadow Of Banking Deregulation, Mathias Hoffmann, Iryna Stewen

Mathias Hoffmann

We show how capital inflows into and financial deregulation within the United States interacted in driving the recent boom and bust in U.S. housing prices. Interstate banking deregulation during the 1980s cast a long shadow: in states that opened their banking markets to out-of-state banks earlier, house prices were more sensitive to aggregate U.S. capital inflows during 1990-2012. Capital inflows relaxed the value-at-risk constraints of geographically diversified (‘integrated’) U.S. banks more than those of local banks. Therefore, integrated banks absorbed a larger share of capital inflows and expanded mortgage lending more. This drove up housing prices.

Small Firms And Domestic Bank Dependence In Europe's Great Recession, Mathias Hoffmann, Bent E. Sorensen

Mathias Hoffmann

The paper studies the role of small businesses (SME) in the transmission of the Eurozone crisis to member countries and whether regions or countries with many SMEs were less able to share risk. Our analysis draws attention to domestic bank dependence---defined as the share of domestic private credit originated by domestic banks---as a key variable modulated the impact of shocks on bank-dependent SMEs and thus on the real economy. We argue that Eurozone banking integration in the years after the creation of the single currency was lopsided in the sense that, until 2008, cross-border lending between banks increased markedly while …

The Power Of The Brics In World Trade And Growth, Analysing The Macroeconomic Impacts Within And Across The Bloc, Ahmed Khalid

Ahmed Khalid

Extract: The BRICS is a composition of five emerging economies: Brazil, Russia, India, China and South Africa. The five countries together represent about 42 per cent of the world's population, over 24 per cent of all land, and about 20 per cent of the world's total GDP, contributing a combined nominal GDP of more than US$14.9 trillion. Over the past decade trade between the BRICS and other regions such as North America, the EU and Japan has surpassed the US$2 trillion mark. Trade within the BRICS countries is growing at an average of 28 per cent per annum, reaching more …

Exchange Rates As Shock Absorbers: The Role Of Export Margins, Lilia Cavallari

Lilia Cavallari

No abstract provided.

Implications Of Export Competitiveness And Performance Of Textile And Clothing Sector Of Pakistan: Pre And Post Quota Analysis, Nawaz Ahmad

Nawaz Ahmad

Textile and Clothing sector of Pakistan has been facing different international trade reforms i.e. Multi-fiber Arrangements, Quota elimination and for some of the developing countries European union, introduced special trade arrangements like GSP plus to improve their balance of trade conditions. In the light of pre quota elimination and post quota elimination periods, this paper highlights trade performance of textile and clothing sector in depth. This study focused on finding the extent of revealed comparative advantage of textile and revealed comparative advantage of clothing sector on overall textile and clothing trade performance of Pakistan. For this purpose study applied Johansen …

Curriculum Vitae, Ronald R. Kumar

Ronald R Kumar

My updated CV

Subsidizing Non-Polluting Goods Vs. Taxing Polluting Goods For Pollution Reduction, Robert S. Main

Robert S. Main

Pigovian taxes on polluters are politically unpopular, but subsidies for non-polluting sources are politically attractive. This paper presents a linear demand and supply model and numerical example to explore the trade-offs between taxing polluting sources of a good versus subsidizing non-polluting sources of the same good. While the model (along with the associated numerical example) shows the optimality of Pigovian taxes, it also shows how much welfare is reduced if subsidies for nonpolluters are employed instead. Further, it shows the optimal tax, given any level of subsidy and the optimal subsidy, given any level of tax.

Monetary Integration And Optimum Currency Area In Asean+3: What We Need For A New Framework?, Reza Moosavi Mohseni Dr., Azali Mohammed Prof.

Reza Moosavi Mohseni

In this paper at first we investigate the viability of creating an optimum currency area (OCA) in the East Asia. The results of a ten-variable VAR model show that forming an OCA for all of the countries in the region is costly and difficult to sustain. But at first five countries called Japan, China, Korea, Malaysia, and the Philippine with symmetric supply shocks can create the OCA. The findings also show that both dollar and yen can be suitable anchor for these countries, but with the exception of Indonesia all other countries are better potential clients of dollar. The final …

That Is The Story Of A Hurricane: Within Country Impacts Of Extreme Weather Events, Martino Pelli, Jeanne Tschopp

Martino Pelli

In this paper, we consider the within-country, across-product impacts of hurricanes on export growth. While hurricanes are thought to exert large costs in terms of development on countries who bare the brunt of such events, there is little consensus on the literature to back up these claims. We argue that one reason for this is that the existing literature fails to take into account the potential for hurricanes to have differential impacts across products (or industries). We show that one important source of heterogeneity is a country’s comparative advantage and demonstrate, using a triple-difference identification strategy, that product lines with …

Beyond Deterrence And Decline Towards A General Understanding Of Peace Economics, Raul Caruso

Raul Caruso

The aim of this short article is to provide elements for a general discussion on peace economics and its potential contribution to economics and economic policy. I first present a discussion on deterrence equilibria and consequent allocation of resources. Eventually I expound five economic channels through which military expenditures turn to be detrimental for economic development. Finally some elements to build a framework for a peaceful economic policy are presented.

Deposit Insurance And Private Capital Inflows: Further Evidence, John Thornton, Yener Altunbaş

John Thornton

We use a simple differences-in-differences technique to exam- ine whether adopting explicit deposit insurance impacts on the scale of private capital inflows to developing economies. We present evidence suggesting that these inflows improved more in countries that adopted deposit insurance than in countries that did not adopt it.

Why Over-Financialization In The Eurozone Periphery Was Inevitable: A Crisis Of Flawed Legislation And Competitive Imbalances, Maximilian Bevan

Maximilian Bevan

Over the past three years, the heads of state in the Euro area have argued over the proper monetary mechanisms to alleviate the protracted European debt crisis. This paper illuminates the often-overlooked aspects of this crisis – the fundamental failures of the monetary union from its inception. It expands the scope of analysis on the Eurozone crisis by addressing the over-financialization in the Eurozone periphery (Greece, Portugal, and Spain) within a political-economy framework. It explicates the direct relationship between the political manipulations of the legislation by Germany (analyzed from a public choice perspective) and the resulting economic consequences that the …

European Press Conference For The Launch Of The Un World Economic Situation And Prospects 2013, Robert C. Shelburne

Robert C. Shelburne

Press conference for the European launch of the United Nations' World Economic Situation and Prospects, 2013

Cointegration Analysis Of Exports And Imports: The Case Of Pakistan Economy, Sharafat Ali

Sharafat Ali

No abstract provided.

Ma Thesis - Migration And Development: The Development Impacts Of Short-Term Labour Migration Of Ni-Vanuatu Workers To New Zealand, Ronald R. Kumar

Dr Ronald R Kumar

The New Zealand’s Recognised Seasonal Employer (RSE) scheme is a New Zealand Government initiative that officially commenced in 2007. In this programme, five developing Pacific Island countries (PICs), namely Kiribati, Samoa, Solomon Islands, Tonga, and Vanuatu – referred to as the kick start countries, participated in short-term labour migration. The objectives of this Scheme are at least two fold. Firstly, the scheme was initiated to address seasonal labour shortage in New Zealand and second, to give employment opportunity to selected PICs. Since 2007, the RSE Scheme has undergone significant changes primarily addressing issues and concerns that emerged along the way. …

Does Small And Medium Enterprises’ (Smes) Understand The Concept Of Intellectual Property Rights (Ip) On Their Business?:, Johansein L. Rutaihwa Mr.

Johansein Rutaihwa

No abstract provided.

Human Capital Formation And Economic Development In Pakistan: An Empirical Analysis, Muhammad Irfan Chani, Mahboob Ul Hassan, Muhammad Shahid

Muhammad Irfan Chani

This study investigates the casual relationship between economic development and formation of human capital in Pakistan. Based on endogenous growth theory, this study empirically tests the standard growth model consisting of gross domestic product (GDP) per capita as a dependent variable and human capital formation, investment in physical capital and labor force as independent variables. Autoregressive distributive lag (ARDL) bound testing approach to cointegration is used to check the long-run equilibrium relationship between the variables included in the model. For checking the causal relationship between economic development and human capital formation, pair-wise Granger causality test is used for time series …

Some Socio Economic Determinants Of Fertility In Pakistan: An Empirical Analysis, Muhammad Irfan Chani, Muhammad Shahid, Mahboob Ul Hassan

Muhammad Irfan Chani

This study aims to investigate the role that various socioeconomic factors like female education, urbanization and female labour force participation play in determining fertility of women in Pakistan. ARDL bound test approach to cointegration is used to analyze the long-run relationship of the variables by using the data for the period from 1980 to 2009. The empirical results show that there exists a long-run as well as short-run relationship between fertility and urbanization, female labour force participation and female education in Pakistan. The analysis indicates there is a negative relationship between all 3 determinants with fertility. Female education and urbanization …

Exploring Sectoral Elasticity Vis-À-Vis Per Worker Income With A Focus To Agriculture: A Study Of Sub-Saharan Africa, Ronald R. Kumar, Radika Kumar

Dr Ronald R Kumar

No abstract provided.

Bank Credit And Economic Growth: A Dynamic Panel Analysis, Nuno Carlos Leitão

Nuno Carlos Leitão

This study examines the link between bank lending and economic growth for European Union (EU-27) for the period 1990 to 2010. We apply a dynamic panel data (GMM-system estimator). This estimator permits to solve the problems of serial correlation, heteroskedasticity and endogeneity for some explanatory variables. As the results show, savings promotes growth. The inflation and bank credit have a negative impact on economic growth as previous studies.

Internal Trade And Aggregate Productivity, Trevor Tombe, Jennifer Winter

Trevor Tombe

The positive link between international trade and productivity is well established. However, research on magnitude and consequences of internal trade barriers, which inhibit the efficient geographic distribution of production within a country, is limited. Unique Canadian data provides an ideal opportunity to measure the magnitude - and impact on productivity - of barriers to internal trade. Using a flexible, micro-founded approach, we measure internal trade barriers between Canadian provinces. We find between-province trade costs average 30%, rising to nearly 50% in poor regions, net of distance effects. We then adapt a new-trade model to estimate the productivity impact of these …

Eac Integration, Johansein L. Rutaihwa Mr.

Johansein Rutaihwa

No abstract provided.

Mexico: Illicit Financial Flows, Macroeconomic Imbalances, And The Underground Economy, Dev Kar

Dev Kar

The study traces the evolution of illicit financial flows from Mexico over the 41-year period 1970-2010. While such outflows have increased throughout the four decades, the pace picked up in the post- compared with the pre-NAFTA period. Furthermore, in spite of the somewhat erratic nature of the outflows over time, there is a discernable pattern to these outflows in the years leading up to the macroeconomic crises and their aftermath. We develop a dynamic simulation model that examines the interactions between fiscal developments, monetary expansion, and the generation of inflation on the one hand and on the interactions between the …

An Analysis Of Different Approaches To Women Empowerment: A Case Study Of Pakistan, Amatul R. Chaudhary, Muhammad Irfan Chani, Zahid Pervaiz

Muhammad Irfan Chani

Understanding The Legitimacy Of Both Dissension And Acceptance Of Accommodative Monetary Policy, Maximilian Bevan

Maximilian Bevan

No abstract provided.

Exploring The Nexus Between Trade, Visitor Arrivals, Remittances And Income In The Pacific: A Study Of Vanuatu, Ronald R. Kumar, Vijay Naidu, Radika Kumar

Dr Ronald R Kumar