Exchange Rate Parity for Trade and Development: Theory, Tests, and Case Studies

Exchange Rate Parity for Trade and Development: Theory, Tests, and Case Studies

by Pan A. Yotopoulos
     
 

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ISBN-10: 0521022622

ISBN-13: 9780521022620

Pub. Date: 09/28/2005

Publisher: Cambridge University Press

Yotopoulos extends recent theories of incomplete markets to investigate empirically the appropriate balance between the market and the state in the trade relations between developed and developing countries. The conclusion is that in an ideal world government intervention in foreign exchange and trade is necessary in developing countries in the early stages and

Overview

Yotopoulos extends recent theories of incomplete markets to investigate empirically the appropriate balance between the market and the state in the trade relations between developed and developing countries. The conclusion is that in an ideal world government intervention in foreign exchange and trade is necessary in developing countries in the early stages and inevitably decreases as development occurs. The analysis and tests draw on empirical research from seventy countries and four extended country studies to confirm the usefulness and validity of the theoretical framework.

Product Details

ISBN-13:
9780521022620
Publisher:
Cambridge University Press
Publication date:
09/28/2005
Pages:
344
Product dimensions:
5.98(w) x 8.98(h) x 0.79(d)

Table of Contents

Part I. A Review of the Terrain: 1. Introduction; 2. Trade and development: the contours of the landscape; 3. Incomplete markets and the 'New Development Economics'; Part II. Theory and Empirical Analysis: 4. Market incompleteness in an open-economy LDC; 5. The relationship between real and nominal exchange rates; 6. Empirical investigation of real exchange rates: tradability and relative prices; 7. An endogenous growth model of incomplete markets in foreign exchange; 8. Are devaluations possibly contractionary? A quasi-Australian model with tradables and nontradables; Part III. Successes and Failures in Development: Good/Bad Economics and Governance: 9. Japan: overvaluation without rent-seeking; 10. The Philippines: failure in policy and politics; 11. Financial integration and the refractory role of intervention: Uruguay and Taiwan; 12. Summary, conclusions and policy recommendations; Bibliography.

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