Can frictionless small open economy models drivensolely by technology shocks account for businesscycles in developing countries? We do not find evidenceof it. We build a DSGE model that jointly includesa variety of real perturbations in addition totechnology shocks, such as procyclical fiscal...

To examine the effects of policy intervention in the presence of imperfect competition in manufacturing, general equilibrium models are constructed of four Western Pacific economies, chosen according to their level of development and the comparative sizes of their manufacturing sectors. The...