The present paper analyzes the consequences of a consumption tax reform for the export sector. In particular, it offers an explanation why exporters support such a reform although economic theory basically predicts trade neutrality. To this purpose, the basic neoclassical model is replaced with two Keynesian assumptions, i.e. sticky wages and absence of perfect foresight. It is derived that in ...

he East African Community (EAC) was revived in July 2000. Since then, there has been some progress registered in expansion of trade between the five member countries, especially with the Customs Union that brought together Kenya, Tanzania and Uganda in 2004, with Rwanda and Burundi joining in 2008. According to the EAC Development Strategy for 2011/12 to 2015/16, intra-EAC trade grew by 40 perc...

In this paper, the effects of oil and gold prices on stock market index are investigated. We use a cointegrated vector autoregressive Markov-switching model to examine the nonlinear properties of these three variables during the period of January 2003 - December 2014. The Markov-switching vector-equilibrium-correction model with three regimes representing "deep recession", "mild recession" and ...

This paper examines the effect of FDI activity on manufacturing exports in four MENA countries. The sensitivity of manufacturing exports and the share in manufacturing exports in total exports to two measures of FDI activity is tested. The findings of this analysis suggest that FDI activity may have a positive effect on the host country’s manufacturing exports. The magnitude of the effect howev...

ABSTRACT The aim of this paper is to investigate the long run sustainability a growth path led by multiple non-creating capacity autonomous expenditures in demand led-supermultiplier model for small open economy. Using two different models results show that it impossible have same long-term economic driven non-capacity creating component domestic demand, exogenous income distribution, long-run ...

the objective of this study is to provide a partial equilibrium analysis of the effects of tariff and exchange rate policy on the net exports with the particular emphasis on the selected economic sectors. the eight economic sectors in the model are agriculture; food, beverages and tobacco; textiles; wood; chemicals; construction; paper and miselaneous which contains metallic and non merallic pr...

This study investigates the responsiveness of manufacturing sector performance to major macroeconomic determinants in Nigeria, covering the period between 1981 and 2018. It contributes to attendant literature by examining the asymmetric impact of each of the macroeconomic variables, including GDP per capita, exchange rate, inflation rate, interest rate proxied by prime lending rate, and gross f...