The paper investigates future exchange rate policy of the Middle East and North African (MENA) countries vis-a-vis the euro aimed at fostering their manufactured exports towards Euroland. The exchange rate policy is captured through three different indicators: the real effective exchange rate...

The paper uses a calibrated general-eqiulibrium model to quantify the welfare impact of trade liberalization - and compute the optimal tariff structure - for Costa Rica when trade-policy induced foreign direct investment and international capital taxation with credita are present. It shows that...

In this article a dual model of the sectoral balance between agriculture and industry in sub-Saharan Africa is developed and compared to the existing literature. Many countries in sub-Saharan Africa discriminated against agriculture to promote industry after independence. The domestic terms of...

The paper analyzes how an error in inflation expectations helped maintain high interest rates in the wake of the major stabilization plans launched in Brazil over the past 18 years. Newly implemented low-inflation measures lacked credibility and forced agents to expect a higher inflation rate...

The paper provides a realistic explanation for the persistently large loan costs in the informal and formal credit markets of South Asia. In the presence of the adverse selection problems that arise from information asymmetries and discrepancies in credit services, price competition in somewhat...

The paper examines whether financial depth can encourage savings. The main issue concerns how best to measure financial depth. A variety of proxies have been used in the past, mostly in the form of financial intermediation ratios (FIRs). A second issue concerns specification. Misspecification in...

The paper examines the relevance of international scale economies and international market efficiency of trade based on the firm-level data of Taiwanese manufacturing industries. The author first constructs a simple analytical framework to measure the extent of scale economies and total factor...

The paper examines the effectiveness of eco-labeling in providing a market-based solution to the under-consumption of eco-friendly products in developing and developed countries. The authors show that whether labeling is an effective device in solving the problem of asymmetric information...

Predatory possibilities are integrated with production and trade in a hawk/dove model. The model shows how mutually beneficial exchange can subdue hawk playing. It also identifies conditions under which predatory possibilities are so large that hawks dominate the economy. One of the unusual...