In order to answer the pertinent question why developing countries are showing penchant for foreign capital over the last two decades in spite of its detrimental effects as revealed from the conventional two-sector mobile capital version of Harris–Todaro (HT) model in the presence of...

The heterogeneity of southern African countries offers the region a unique opportunity to exploit agricultural potential and trade opportunities through regional integration. We analyze the implications of such opportunities using a regional general equilibrium model. We find that growth in...

In this paper, advanced economies are aggregated into ‘North’ whereas ‘South’ comprises the less advanced ones. Trade induced technology diffusion is source of enriched technological contents. We also consider two scenarios: (i—“hub and spokes [HAS]”) the North establishes separate...

International pressure to revalue China’s currency stems in part from the expectation that rapid economic growth should be associated with a real exchange rate appreciation. This hinges on the Balassa-Samuelson hypothesis under which economic growth is due to relative tradable productivity...

This paper explains why a developing country may experience a jobless growth in the organised sectors during liberalised regime within the framework of a three-sector mobile capital version of Harris-Todaro type general equilibrium model describing rural-urban migration with agricultural dualism...

Due to low bargaining power and scarce resources, small developing states face severe disadvantages in international negotiations and may benefit from bloc formation and intra-bloc migration. Policies are examined in a model where a bloc’s size and welfare impact are determined by...

This paper extends the technique of integrated equilibrium analysis to con - sider a trading world with unemployment due to a wage floor. Unlike previous models with wage floors, world goods prices and patterns of production are endogenous. This more general analysis of a trading world allows...

The trade balance is built directly into a factor proportions model of produc - tion. A wealth stockpile of the exported good is maintained, growing when the small open economy has a surplus and shrinking with a deficit. Income and prices determine consumption of exports and imports, while...

In this paper we present an intertemporal model of the spot and forward markets for foreign exchange. We analyze the implications of central bank interventions on the spot market for the risk premium in the currency forward market and discuss the consequences for the allocation of exchange rate...

This paper attempts to give an idea about the upshot of a recessionary phase on the intermediation activity which is required for the survival of the informal fragment of a society. Informal part of the economy covers a large chunk of the total economic activities in any developing economy....