The Chinese economy underwent cyclical fluctuations in growth and inflation in the reform period. Contrasting views exist on the role of money in such fluctuations. This paper assesses these views employing structural VEC models based on the exchange...
This paper proposes a structural VAR model which extends the frameworks of Hoffmaister and Roldós (2001) and Prasad (1999). The model is then used to analyse the sources of China’s trade balance fluctuations in the period of 1985–2000. Efforts are...
This paper represents a first attempt to study China’s business cycles using a formal analytical framework, namely, a structural VAR model. It is found that: (a) demand shocks were the dominant source of macroeconomic fluctuations, but supply shocks...
In this paper we use data from 17 African nations in order to investigate the hypothesis that monetary union – represented in this case by the CFA Franc Zone – augments the extent of macroeconomic integration. The paper covers a number of dimensions...
The current context of the COVID-19 pandemic has exposed the most vulnerable socio-economic groups to greater financial risk and thus could lead to exacerbating income inequality. The crisis creates an opportunity to demand further structural and...
THIS ARTICLE IS ON EARLY VIEW | This study examines the redistributive effects of financial liberalization, including domestic and external finance reforms, implemented in 64 emerging and low-income countries over the past four decades. To identify...
Commodity price fluctuations have been troublesome in their destabilising effects on the foreign exchange earnings of developing countries. Recently, however, attention has been drawn to their role in transmitting inflation and in inducing...
An interesting theory of transition must give a convincing account of structural adjustment and supply side improvement. In this paper, I discuss the incentives for government to undertake costly supply side improvement and how these relate to...
In a dynamic panel data model allowing for error cross-section dependence, output volatility is found to impede sustainable development. Through a financial development channel (liquidity liability ratio), output volatility exerts a significant...
This paper argues that, if implemented in its current form, the new Basel Capital Accord will adversely effect developing sovereigns, corporates and banks wishing to borrow in international markets. This impact will result from the major banks’...
For many emerging market economies, over reliance on monetary policy may bring worse macro results, when compared to a more balanced framework of countercyclical fiscal and monetary policy. The use of countercyclical fiscal policy requires as a...
This paper investigates whether cyclical variation in women’s labour supply in Africa contributes to smoothing household consumption. We find little support for this hypothesis. Using comparable individual data on about 0.5 million women in 30 Sub...
Part of Journal Special Issue Aid, Social Policy and Development
The recent financial crisis has rekindled interest in the foreign aid supply behaviour of bilateral donors. Using the latest data covering the period 1960-2009, this paper examines how such behaviour is related to domestic factors. Based on a simple...
This book is a synthesis of recent work on the experiences of developing countries with stabilization programs. Critical of the orthodox "neoclassical" or "monetarist" approach of the IMF and the World Bank, the book advocates a structuralist...
Part of Book The Impact of EMU on Europe and the Developing Countries
This paper develops a model of opportunistic behaviour in which an incumbent government resort to expansionary fiscal and/or monetary stimuli to foster economic growth and thus, maximize the probability of re-election. Using a panel dataset of 51...
We analyse the business cycles in China and in selected OECD countries between 1992 and 2006. We show that, although negative correlation dominates for nearly all countries, we can also see large differences for various frequencies of cyclical...
While the negative effects of the 2008 global financial crisis on labour productivity are still fresh in people’s minds, the COVID-19 pandemic raises concerns that productivity will continue to decline. To boost labour productivity and regain...
Which structural reforms affect labour productivity growth in developing countries? This paper answers this question by combining the local projections method and the inverse probability weighted regression adjustment (LP-IPWRA) method. We find that...
This paper investigates whether cyclical variation in women’s labour supply in Africa contributes to smoothing household consumption. We find little support for this hypothesis. Using comparable individual data on about 0.5 million women in 30 Sub...
Macroeconomic instability has been increasingly considered as a factor lowering average income growth and, in this way, is a factor slowing down poverty reduction. But it can also result in slower poverty reduction for a given average rate of growth...
This paper explores the complementary use of two instruments to manage capital-account volatility in developing countries: capital-account regulations and counter-cyclical prudential regulation of domestic financial intermediaries. Capital-account...
Can we use neoclassical growth model to single out the important transmission channels through which external factors or ‘primitives’ affected the Indian economy and caused the remarkable growth of the period 1982–2002? In this paper, we answer the...
Part of Book From Capital Surges to Drought
Part of Book From Capital Surges to Drought
Part of Journal Special Issue Aid Policy and the Macroeconomic Management of Aid
Part of Book Varieties of Stabilization Experience
Part of Book Varieties of Stabilization Experience
Part of Book Varieties of Stabilization Experience
Part of Journal Special Issue Aid Policy and the Macroeconomic Management of Aid
In the wake of the financial crisis of 2008 and 2009 interest in the supply side of the donor equation has been rekindled. During a period where the economies of many major donors are unstable, and in some cases, shrinking, it is important to...
What type of business destroys proportionately more jobs during times of economic recessions and hires more in booms? This simple question motivates...
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