Using data for a sample of developing countries, we analyze the effects of external flows, namely migrants' remittances and FDI flows, on real output growth, price inflation, and components of aggregate demand. The historical evidence indicates unstable patterns of FDI inflows to a sample of...

The paper investigates asymmetry in the slope of the aggregate supply curve in the face of aggregate demand shocks using annual data for ten countries of the Middle East. The evidence is contrasted to a sample of developing countries and a sample of more developed countries. The empirical...

This investigation evaluates the real and inflationary effects of stabilization policies across countries of the Middle East. Three measures of stabilization policies are under consideration: the growth of the money supply, the growth of government spending and the devaluation of the domestic...

A widely held view in the economic literature is that productivity growth is an important pathway through which trade liberalisation may alleviate poverty. This paper explores the link between trade openness, agricultural productivity growth and poverty reduction in a panel of Mediterranean...

This paper examines determinants of private consumption in a sample of developing countries. The empirical model includes income, a proxy for the cost of consumption, and the exchange rate. Anticipated movements in these determinants are likely to trigger adjustment in planned consumption, while...

This paper examines the asymmetric effects of exchange rate fluctuations on real output and price in developing countries. The theoretical model decomposes movements in the exchange rate into anticipated and unanticipated components. Unanticipated currency fluctuations determine aggregate demand...

The main purposes of this article are 3-fold. First, we construct measures of real and nominal effective exchange rates for 14 Middle East and North African countries over the 1970-2004 period. Second, we test the validity of the Purchasing Power Parity (PPP) by applying the ADF and KPSS tests...