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Current Account Balances, Financial Development and Institutions : Assaying the World "Savings Glut"

Chinn, Menzie David; Itō, Hiro - 2021

We investigate the medium-term determinants of the current account using a model that controls for factors related to institutional development, with a goal of informing the recent debate over the existence and relevance of the "savings glut." The economic environmental factors that we consider...

Persistent link: https://www.econbiz.de/10013246398

The Size and Timing of Devaluations in Capital-Controlled Developing Countries

Flood, Robert P.; Marion, Nancy Peregrim - 2021

A developing country often pegs its exchange rate to a single currency, such as the U.S. dollar, even though it faces a higher inflation rate than the country to which it is pegged. As a consequence, it experiences real exchange-rate misalignments and a series of easily-anticipated devaluations....

Persistent link: https://www.econbiz.de/10013219189

Capital Account Liberalization : Theory, Evidence, and Speculation

Henry, Peter Blair - 2010

liberalization on real variables. In contrast to the prevailing wisdom, I argue that the textbook theory of liberalization holds up … real variables tell us nothing about the empirical validity of the theory, because they do not really test it. This paper … explains why it is that most studies do not really address the theory they set out to test. It also discusses what is necessary …

Persistent link: https://www.econbiz.de/10012760534

Collateral Damage : Exchange Controls and International Trade

Wei, Shang-jin - 2010

While new conventional wisdom warns that developing countries should be aware of the risks of premature capital account liberalization, the costs of not removing exchange controls have received much less attention. This paper investigates the negative effects of exchange controls on trade. To...

Persistent link: https://www.econbiz.de/10012760195

Endogenous Product Cycles

Grossman, Gene M.; Helpman, Elhanan - 2021

We construct a model of the product cycle featuring endogenous innovation and endogenous technology transfer. Competitive entrepreneurs in the North expend resources to bring out new products whenever expected present discounted value of future oligopoly profits exceeds current product...

Persistent link: https://www.econbiz.de/10013223071

A North-South Model of Taxation and Capital Flow

Slemrod, Joel B. - 2021

This paper presents a simple two-country model of the role of taxation in capital flows between developed countries ("The North") and developing countries ("The South"). The Southern country is assumed to be unable to enforce a tax on its residents' foreign-source income, and the Northern...

Persistent link: https://www.econbiz.de/10013229042

Starting Small in an Unfamiliar Environment

Rauch, James E. - 2012

Motivated by a characteristic way in which firms in developed countries make their decisions regarding cooperation with potential partners from less developed countries, we design a simple model of a DC firm's search for an LDC partner/supplier and the subsequent relationship between the two...

Persistent link: https://www.econbiz.de/10013114940

Do International Labor Standards Contribute to the Persistence of the Child Labor Problem?

Doepke, Matthias - 2014

In recent years, a number of governments and consumer groups in rich countries have tried to discourage the use of child labor in poor countries through measures such as product boycotts and the imposition of international labor standards. The purported objective of such measures is to reduce...

Persistent link: https://www.econbiz.de/10013071085

Gains from FDI Inflows with Incomplete Information

Razin, Asaf; Tsadḳah, Efrayim - 2021

The paper develops an international macroeconomic model of FDI flows with a unique feature: a hands-on management ability to react in real time to changing economic environments. Anticipating this advantage, foreign direct investors can outbid other investors in a certain industry in which they...

Persistent link: https://www.econbiz.de/10013247393

Capital Flight, External Debt and Domestic Policies

Dooley, Michael P.; Kletzer, Kenneth - 2021

It is now well documented that capital flight has been a dominant feature of capital movements between developing and industrial countries. Since 1988 reductions in the stock of flight capital more than account for private capital flows to emerging markets. This suggests that what appears to be...

Persistent link: https://www.econbiz.de/10013248413