A major puzzle in the open economy literature is why some countries have persistently higher real exchange rates than others. Even more puzzling is the fact that countries with high real exchange rates are strong export performers. We solve both puzzles with a model that integrates two central debates in the comparative political economy of advanced economies: one linking wage bargaining, incom...

Economic development in Taiwan over the past four decades has been characterized by rapid growth, export expansion, stable prices, full employment, and fairly equitable income distribution. In the natural course of its development, the economy underwent significant long-term changes in terms of production, trade, and employment. Although the two oil crises of the 1970s had short-term impacts on...

This paper describes the participation of smallholders in commercial horticultural farming in Kenya and identifies constraints and critical factors that influence their decision to participate in this industry by selling their produce. The study employs panel survey data on smallholder producers of both international (export) and domestic market vegetables and controls for unobserved heterogene...

The relative value of currencies varies considerably over time. These fluctuations bring uncertainty to international traders. As a result, the volatility in exchange rate movements may influence the volume and the price of traded commodities. The volatility of exchange rates was measured by the variance of residuals in a GARCH(1,1) model of the exchange rate. We estimated the effect of this ex...

The sharp increase in Australia's terms of trade since 2003-04 has dramatic regional and sectoral implications. Mining-intensive regions have gained from the jump in export prices. Import-competing sectors have faced greater competition both from falling import prices and due to rising demand for domestic factors from the mining sectors. The drought of 2006 will widen the gap between winning an...

macroeconomic policies lead to changes in farming system. these changes are accompanied by some most prominent factors that affect soil erosion. change in relative prices and its impact on soil erosion, via induced changes in crop patterns and agricultural practices, are related to policies implemented. one of the major goals of the present study is to emphasize on the flow of trade policies in...

this paper investigates the short- run and long-run effects of government size and exports on the economic growth of iran as a developing oil export based economy for the period of 1974 - 2008 using an autoregressive distributed lags (ardl) framework. a modified form of feder (1982) and subsequently ram’s (1986) model has been applied to include both government size and exports in growth equati...

This paper identifies some of the main determinants of exports in Fiji. A single equation model for exports is developed in which trading partner income and relative prices play a central role. The underlying conceptual framework is an imperfect substitution model, in which the key assumption is that exports are not perfect substitutes for domestic goods in importing countries. A distinguishing...

Economists often comment that inflation will tend to increase (or decrease) if growth is higher or lower than the 'potential' growth rate of the the economy. After setting out a theoretical justification for such a relationship we estimate equations relating the change in inflation to growth rates for the US, Canada and Australia. Our system also allows for the possibility that traded goods pri...