The paper develops a dynamic general equilibrium monetary endogenous growth model. The closed economy model is inhabited by consumers, firms, a Cournotian monopolistically competitive banking system, besides, an inflationtargeting monetary authority, and, in turn, analyzes the effect of a tight monetary (disinflationary) policy on growth. We show that the effect of a lower inflation target on g...

After the World War II, the world economy was disrupted and changed due to oil and its prices. The research in this paper presents the basic statistical features and economic characteristics of the Gulf economy. The main features of the Gulf economies and its heavy dependence on oil exports, its dualism between modern and traditional sectors and its rapidly increasing affluences are particularl...

This paper uses a production function approach to put the recent contribution of the New Economy to US economic growth into perspective by undertaking an analysis of the sources of technical progress in the business sector over the post-war period. We model jointly a pair of factor demand equations derived consistently from an underlying CES production technology, and explicitly endogenise tech...

Should the national economy lead the stock market or the other way round? Using co-integration test and Granger causality test, this paper analyzes the relationship between the stock index and the national economy in the case of China. The result of the empirical analysis indicates that there is no co-integration relationship between the stock index and the national economy in China. In additio...

Primary objective of this paper is to explain why Korea has been successful in economic growth and industrial transformation while Iran has failed in this area. To explain the different performances of the two countries, we have looked at their initial level of industrialization, nature of political regimes and economic institutions, trade and industrial policies in the two countries. Our c...

This chapter assesses the impact of HIV/AIDS on the functioning of the economy, its GDP growth and the growth of the main sectors. In most developing economies, even a moderate AIDS-induced decline in the rate of growth leads – in the absence of a robust public policy response to a considerable impoverishment of families and children and to a gradual fall in the long term growth of the economy ...

Railways were integral to the development of the Indian economy before World War I. In this paper, we present new estimates of total factor productivity (TFP) for railways from 1874 to 1912, which highlight the strong performance of this key industrial sector. We find railway-industry TFP growth to be substantial, averaging 2.5 percent per year and generating a 3 percent social savings for the ...

As Pakistan’s economy entered the fourth year (FY 2006-07) of above 7.0 percent growth, its poverty headcount had fallen from one-third to less than one-fourth of the population. The confluence of growth accelerating government policies, nature’s blessings and annual growth of 21% in pro-poor expenditures during the period contributed to approximately 13 million people moving out of poverty. In...

Since the reform and opening up, the growth mode of China’s economy has essentially featured a heavy reliance on investment and exports and intense input of low-cost resources and factors. Such a mode was reasonable to some extent when China lagged behind in economic development and its economic aggregate accounted for a relatively small proportion of the world economy. With China’s continuous ...

This paper presents a model in which a high growth economy becomes susceptible to a sudden financial crisis. In the model firms are motivated to over-invest because of government subsidies and then bear the burden of the inefficiencies caused by the government distortion. We assume that the firms compensate for their losses by obtaining bank loans and domestic banks will continuously lend money...