Reinhart, Carmen (1989): A model of adjustment and growth: An empirical analysis. Published in: Macroeconomic Models for Adjustment in Developing Countries (1991): pp. 10-37.
Download (12Mb) | Preview
This paper develops a model merging the monetary approach to the balance of payments and a neoclassical growth model into a unified framework in which inflation, growth, and the balance of payments are simultaneously determined. The empirical part of the paper presents estimates of the key parameters of the model for a sample of seven diverse developing countries and tests the validity of a subset of the theoretical assumptions. The estimated model is then used for a variety of comparative static exercises, including the effects of f i s c a l and monetary policy changes, and devaluation.
|Item Type:||MPRA Paper|
|Original Title:||A model of adjustment and growth: An empirical analysis|
|Keywords:||growth current account inflation IMF programs devaluation|
|Subjects:||F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F40 - General
F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F41 - Open Economy Macroeconomics
E - Macroeconomics and Monetary Economics > E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment > E20 - General
|Depositing User:||Carmen Reinhart|
|Date Deposited:||17. Mar 2009 05:12|
|Last Modified:||19. Feb 2013 10:02|
Balassa, Bela, "Exports and Economic Growth: Further Evidence," Journal of Development Economics (June 1978), pp. 181-89.
Chenery, Hollis B., and Alan M. Strout, "Foreign Assistance and Economic Development", American Economic Review (September 1966), pp. 679-733.
Corbo, Vittorio, Morris Goldstein, and Mohsin Khan (eds.), Growth-Oriented Adjustment Programs (Washington, D.C.: IMF and the World Bank, 1987).
Fry, Maxwell J., "Terms of Trade Dynamics, An Analysis of National Savings and Domestic Investment to Terms of Trade Changes i n 14 Asian LDCs", Journal of International Economics Vol. 5, March 1986.
International Monetary Fund, The Monetary Approach to the Balance of Payments (Washington, D.C.: IMF 1977).
IMF, Theoretical Aspects of the Design of Fund-Supported Adjustment Programs, IMF Occasional Paper No. 55 (Washington, D.C., IMF, September 1987).
IMF, World Economic Outlook, (April 1988).
Haque, Nadeem U. and, Peter Montiel, "Ricardian Equivalence, Liquidity Constraints, and the Tarai-Blanchard Effect: Tests for Developing Countries" Review of Economics and Statistics (1989). forthcoming.
Khan, Mohsin S., and Malcolm D. Knight, Fund-Supported Adjustment Programs and Economic Growth. IMF Occasional Paper No. 41 (Washington, D.C.,IMF, November 1985).
Khan, Mohsin, Peter Montiel, and Nadeem Haque, "Adjustment with Growth: Relating the Analytical Approaches of the World Bank and the IMF", World Bank, Development Policy Issues Series Discussion Paper (October 1986).
Khan, Mohsin, Peter Montiel, "Growth-Oriented Adjustment Programs: A Conceptual Framework", IMF Working Paper Series No. 64 (July 1988).
Khan, Mohsin, and Carmen M. Reinhart, "Private Investment and Economic Growth i n Developing Countries," IMF, unpublished (March 1989).
Robichek, E. Walter, "Financial Programming as Practiced by the IMF", World Bank, unpublished (January 1985).
Robinson, Sherman, "Sources of Growth in Less Developed Countries: A Cross-Section Study", Quarterly Journal of Economics (August 1971), pp. 391-406.
Rossi, Nicola, "Government Spending, the Real Interest Rate, and the Behavior of Liquidity Constrained Consumers in Developing Countries" IMF Staff Papers (March 1988). pp. 104-140.
Sato, Kazuo, "International Variations in the Incremental Capital-Output Rates", Economic Development and Cultural Change, July 1971.
Tyler, William G., "Growth and Export Expansion in Developing Countries: Some Empirical Evidence," Journal of Development Economics (March 1981), pp. 121-30.
Wai, U. Tun, "A Study of ICOR in Developing Countries", Finafrica Savings and Development, Vol. IX, No.3, 1985.