Aid, Nontraded Goods, and the Transfer Paradox in Small Countries

1999 ◽  
Vol 89 (3) ◽  
pp. 431-449 ◽  
Author(s):  
Makoto Yano ◽  
Jeffrey B Nugent
Keyword(s):  
Open Economy ◽  
Time Series Data ◽  
Small Open Economy ◽  
Series Data ◽  
Small Country ◽  
Displacement Effect ◽  
Transfer Paradox ◽  
Nontraded Goods ◽  
Small Countries ◽  
Expansion Effect

This paper constructs a model of the transfer paradox for a small open economy with nontraded goods. It demonstrates that increased production of nontraded goods can change their domestic price so as to offset the otherwise beneficial effect of aid and, under certain conditions, to create a transfer paradox even in a small country. The model is estimated with time-series data for 44 aid-dependent countries for the period 1970–1990. The results support the model and show that the nontraded goods expansion effect is more likely to cause immiserization than Johnson's tariff-distorting export-displacement effect. (JEL F0, O1)

scholarly journals PENGARUH ECONOMIC SHOCK TERHADAP PENERIMAAN PAJAK PADA KANTOR WILAYAH PAJAK DI INDONESIA

2009 ◽  
Vol 10 (1) ◽  
pp. 68
Author(s):  
Eddi Wahyudi ◽  
Bunasor Sanim ◽  
Hermanto Siregar ◽  
Nunung Nuryartono
Keyword(s):  
Open Economy ◽  
Time Series Data ◽  
Panel Data Analysis ◽  
Research Result ◽  
Small Open Economy ◽  
Warning System ◽  
Value Added ◽  
Series Data ◽  
Directorate General ◽  
Economic Shock

The purpose of this research is to analyse how far the economic shock influence upon the tax revenue performance in the regional tax office. The research is conducted using yearly time series data within 2002 to 2007 and also applying two indicators: Income Tax and Value Added Tax. By using the panel data analysis the result upon 31 Kanwil Directorate General of Tax (DGT) whole Indonesia it is known that the fluctuation variable of Tax Early Warning System (TEWS) gives positive effect to the tax income performance at Kanwil Khusus, Kanwil WP Besar 1 and 2, Kanwil Jakarta Selatan and Kanwil Jakarta Pusat. Overall the entire research result explains that Indonesia economic condition until he year of 2007 is still in the small open economy status and identically to New Keynes theory. The conclusion is as if the research about the Indonesia business cycle previously and consistent with the initial assumption applied.

Trade Tax Reform in a Small Open Economy with Distributional Objectives and Distortionary Taxation

2002 ◽  
Vol 1 (1) ◽  
Author(s):  
Jeremy Edwards
Keyword(s):  
Open Economy ◽  
Small Open Economy ◽  
Small Open Economies ◽  
Tax Reforms ◽  
Distortionary Taxation ◽  
Nontraded Goods ◽  
Traded Goods ◽  
Consumer Prices ◽  
Distortionary Taxes ◽  
The One

Abstract The paper shows that, if two conditions are satisfied, both radial contraction and concertina trade tax reforms continue to be desirable in a small open economy that differs from the one usually considered by having distributional objectives and using distortionary taxes to raise revenue. The first condition is that some optimisation in the choice of commodity taxes takes place - at a minimum, taxes on nontraded goods must be optimally chosen while taxes on traded goods keep the consumer prices of such goods constant. The second is that pure profits are absent from every household's budget constraint. These conditions mean that some care is required in arguing the case for simple trade tax reforms in small open economies.

scholarly journals Exchange Rate Pass Through in a Small Open Economy: A case study of West African Monetary Zone

2013 ◽  
Vol 9 (4) ◽  
pp. 275-290
Author(s):  
Rahman olanrewaju Raji
Keyword(s):  
Exchange Rate ◽  
Open Economy ◽  
Price Index ◽  
Time Series Data ◽  
Consumer Price Index ◽  
Import Price ◽  
Series Data ◽  
Import Prices ◽  
Pass Through ◽  
Exchange Rate Pass Through

The  study investigated the magnitude of exchange rate pass through to import prices and domestic prices    (consumer price index) in WAMZ economy using quarterly time-series data between 2000 and 2010 with the aids of Vector autoregressive (VAR) modeling technique supported with Johansen co-integration approach cross country analysis comprising of Gambia, Ghana, Nigeria and Sierra-Leone. The study discovered that transmission of exchange rate to import prices is more when compared with consumer price in the zone while the contributions of exchange rate to import price are not less 13 percent at average in entire zone. Consumer price index was explained by exchange rate pass through with an average of 26 percent in the zone where the pass through to consumer price is less than two percent in Ghanaian economy. The Taylor (2000) hypothesis was observed in the study where Ghana and Nigeria are the outlier economies while Nigeria established a positive relationship between interest rate volatility and exchange rate pass through to import prices.

scholarly journals An Empirical Analysis of Energy Consumption, FDI and High Quality Development Based on Time Series Data of Zhejiang Province

2020 ◽  
Vol 17 (9) ◽  
pp. 3321
Author(s):  
Shaolong Zeng ◽  
Yiqun Liu ◽  
Junjie Ding ◽  
Danlu Xu
Keyword(s):  
Time Series ◽  
Economic Development ◽  
Energy Consumption ◽  
Open Economy ◽  
High Speed ◽  
Time Series Data ◽  
Rapid Development ◽  
Series Data ◽  
High Quality ◽  
The Relationship

This paper aims to identify the relationship among energy consumption, FDI, and economic development in China from 1993 to 2017, taking Zhejiang as an example. FDI is the main factor of the rapid development of Zhejiang’s open economy, which promotes the development of the economy, but also leads to the growth in energy consumption. Based on the time series data of energy consumption, FDI inflow, and GDP in Zhejiang from 1993 to 2017, we choose the vector auto-regression (VAR) model and try to identify the relationship among energy consumption, FDI, and economic development. The results indicate that there is a long-run equilibrium relationship among them. The FDI inflow promotes energy consumption, and the energy consumption promotes FDI inflow in turn. FDI promotes economic growth indirectly through energy consumption. Therefore, improving the quality of FDI and energy efficiency has become an inevitable choice to achieve the transition of Zhejiang’s economy from high speed growth to high quality growth.

DAMPAK PENERAPAN KUOTA IMPOR TERHADAP PERMINTAAN KARET ALAM INDONESIA OLEH NEGARA CHINA

2013 ◽  
Vol 1 (2) ◽  
pp. 125
Author(s):  
Muhamad Ridho Syaffendi ◽  
Amzul Rifin ◽  
Siti Jahroh
Keyword(s):  
Natural Rubber ◽  
Open Economy ◽  
Time Series Data ◽  
Multiple Linear Regression Model ◽  
Series Data ◽  
Synthetic Rubber ◽  
Several Variables ◽  
Asean Countries ◽  
The Impact ◽  
Descriptive Models

<em>Indonesia is once country with an open economy, trade is one way to get the source of income for the country. therefore, Indonesian trying to be a exporters some excellent products, especially in the area of ​​rubber plantations. This study aims to look and identify the impact of the adoption quota production of natural rubber to Indonesia and other major rubber producing countries in the ASEAN region, in this study using a rubber commodity time series data to be analyzed quantitatively through descriptive models and quantitative models. Deskritptif model used is multiple linear regression model. the results of this study demand for natural rubber imports from ASEAN countries China is influenced by several variables that the price of natural rubber, synthetic rubber prices , income per capita , exchange rates , and dummy variables. Judging from the competitiveness of Indonesia's natural rubber can not compete in terms of price with natural rubber Thai state, due to Indonesia's natural rubber are substitutes for natural rubber Thailand, while for Malaysia, Indonesia's natural rubber relationship is complementary.</em>

scholarly journals Determinants of Nominal Effective Exchange Rate in Uganda (2000-2017): A Vecm Approach

2018 ◽  
Vol 5 (5) ◽  
pp. 45
Author(s):  
Sawuya Nakijoba
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Open Economy ◽  
Time Series Data ◽  
Reduced Form ◽  
Series Data ◽  
Impulse Response Functions ◽  
Long Run ◽  
Effective Exchange ◽  
Effective Exchange Rate

This study analyses the main determinants of the nominal effective exchange rate using quarterly time series data covering the period 2000 to 2017. The Augmented Dickey Fuller test confirms that all the with the exception of interest rate were non stationary in levels. This study employs the reduced form Vector Auto-regression (VAR) and Johansen and Juselius cointegration to estimate the long run relationship between exchange rate and other key variables. The VAR is used following the Mundell-Fleming model which argues that, in an open economy with external trade and financial transactions the key macro variables interact and influence each other with lags. The impulse response functions are used to investigate the monetary policy transmission mechanism (MPTM). The study indicates that money supply, terms of trade and inflation were negative while gross domestic product and interest rate were positively related to exchange rate . The variables were found to have a long run relationship.  The estimate of the speed of adjustment indicates that when nominal effective exchange rate deviates from the equilibrium, it returns to the equilibrium quickly because of its coefficient of adjustment which is 0.25.

scholarly journals Revisiting the Dynamic Impact of Fiscal Policy on Inflation in Pakistan

2021 ◽  
Vol 7 (2) ◽  
pp. 341-348
Author(s):  
Farrah Yasmin ◽  
Saima Urooge ◽  
Muhammad Umair ◽  
Sher Ali
Keyword(s):  
Fiscal Policy ◽  
Open Economy ◽  
Research Study ◽  
Time Series Data ◽  
Dominant Role ◽  
Series Data ◽  
Test Results ◽  
Dynamic Impact ◽  
The Government

Purpose: The target of the present research study is to examine the Non-Ricardian regime and determination of inflation in an open economy taking the case of Pakistan. Design/Methodology/Approach: This research is carried out for the economy of Pakistan for the period of 1976–2019. To deal with the time series data we need to test the Stationarity of the data in advance to confirm the non-existence of the second I(2) of stationarity. For the purpose of stationarity testing this study used test Phillips Peron (PP) test. PP test results suggested the use of ARDL. Findings: The results of ARDL reported that the intervention of the government has a very important and dominant role the determination of price level (Inflation) in an open economy. Implications/Originality/Value: The study has concluded that the government should focus on fiscal measure as well with the extensive use of monetary policy in coordination with fiscal policy to keep inflation in control in Pakistan.

scholarly journals The Macroeconomic Effects of a Productivity Shock in the Nontraded Goods Sector

Ekonomika ◽  
2007 ◽  
Vol 77 ◽  
Author(s):  
Juha Tervala
Keyword(s):  
Open Economy ◽  
Small Open Economy ◽  
Productivity Shocks ◽  
Interesting Insight ◽  
Nontraded Goods ◽  
Productivity Shock ◽  
Negative Effect ◽  
Short Run ◽  
Macroeconomic Effects ◽  
Rbc Models

This paper analyses the macroeconomic effects of a productivity shock in the nontraded goods sector using a small open economy model. The paper develops a simple dynamic general equilibrium model offering intuitive explanations of how a productivity shock affects a small open economy. The model gives a surprisingly pessimistic view on the benefits of productivity shocks. For example, a productivity shock has, except for one special case, a negative effect on the output of nontraded goods in the short run. This result differs from the results of RBC models. The paper gives an interesting insight into the possible effects that the introduction of the EU (European Union) services directive or GATS (General Agreement on Trade in Services) agreement may have.

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