Optimal Debt? On the Insurance Value of International Debt Flows to Developing Countries

According to reputation models of sovereign debt, the incentives to repay are proportional to the income insurance benefits provided by the access to international markets. This paper, however, documents that private net lending to developing countries exhibits a procyclical or acyclical pattern, contradicting this premise. By contrast, official debt net flows exhibit a countercyclical patter. In addition, the paper shows that (both current and past) defaults are associated with lower net debt flows. The findings suggest that, while reputation models may explain the preferred creditor status enjoyed by official lenders, they cannot account for the presence of sovereign debt markets in developing countries.     

Trade and the Wage Structure in the Presence of Price Differentials in the Product Market: The Japanese Labor Market 1965–1990

The decomposition of demand into domestic, export, and import components in a cross-industry study of 18 two-digit manufacturing industries suggests that export growth has less of an impact on interindustry wage differentials than the equivalent growth in domestic demand. The difference seems to be greatest in the case of full-time workers in large firms. This result for Japan is different from those of similar studies for the United States and is consistent with a model of industry rent-sharing with domestic–international price differentials in the product market.J. Japan. Int. Econ., March 1999,13(1), pp. 22–43. Nissan Institute of Japanese Studies, Oxford University, 27 Winchester Rd., Oxford OX2 6NA, EnglandCopyright 1999 Academic Press.Journal of Economic LiteratureClassification Numbers: F14, J31.     

The Measurement of Market Relative Maturity Based on Single Price Model

Market relative maturity is an important index in setting up marketing objectives. Firstly, single price model is introduced, including methods of modeling and resolving. Then the input and output system and the measuring method of market relative maturity are proposed, and a case of a moderate-sized pharmaceutical company is analyzed. Finally, its applications in market practice are discussed.     

The Study of the Development of Chinese Online Game Industry and Market

The development, sale and management of online game have become a whole industry chain. It is hard to imagine its economic benefits. The article analyses the forming of supply-demand relationship in online game market, profits source, the way of market exchange, business order and primary problems that online game market faces. To make the market and the industry of online game develop in a sustaining and healthy way, our society should create a favorable environment, and the authorities in economics, management and law fields ought to attach importance to the research on relevant problems,     

The Path Dependence and Target of the Innovation of Chinese Bill Market

The current social and economic background of China and the development of Chinese financial market decide that, the system innovation of bill market must choose reasonable path, perfect the system arrangement of bill market, innovate the financing instruments of bills, control the market risk, raise the efficiency of market operation, bring the market function of bills into full play, make the bill market really become the effective instrument for the financial institutions and enterprises to finance, and become the carrier for the monetary policy to conduct and promote the standardized and healthy development.     

The Effects of the President’s Emergency Plan for AIDS Relief on the Economies and Domestic Politics of Focus Countries

President G.W. Bush’s Emergency Plan for AIDS Relief (PEPFAR) has been rated as one of the successful US aid interventions of recent decades. We investigate the impact of PEPFAR on economic development, democracy, and human rights by comparing focus countries that received PEPFAR with other countries that did not receive PEPFAR from 2003 to 2008. Moreover, we examine specific changes made within focus countries after the implementation of PEPFAR using Difference-in-Difference estimation. Our results show that PEPFAR did improve economic conditions in focus countries but had a limited impact on political conditions, that is, on democracy and human rights.     

Review of the EU’s Preliminary Assessment of China’s Market Economy Status

I. Introduction In late June 2004, the EUmade a decision on its Preliminary Assessment of the People’s Republic of China’s Request for Graduation to Market Economy Statusin Trade DefenseInvestigations. This preliminary result came out after China lodged the request in June2003. The EU assessment report holdsthatbefore it can be granted thestatus, China needsto make substantialprogress in fourfields:government intervention, corporate governance,property and bankruptcy laws, and the f…     

The Asymmetric Loss Function and the Central Banks’ Ability in Developing Countries

Abstract

This paper seeks to develop a theoretical strand of research in monetary economics by modelling central bank ability in the loss function. Recently, many working papers issued by the International Monetary Fund (IMF) prove that some central banks, particularly from developing countries, are suffering from serious operational problems that might affect their abilities to control the economy. Simultaneously, a literature review shows that the movements are toward using asymmetric loss function. Therefore, we utilize this function in the standard monetary approach. The results proved that both central bank ability and preference in developing countries are fundamental to explain inflation bias and the movement of monetary policy instrument.     

The Impact of FDI on Developing Countries

I. IntroductionForeign direct investment (FDI) has been one of the defining features of the world economyover the last two decades. It has grown at an unprecedented pace for more than ten years,with only a slight interruption during the recession of the early 1990s. Almost all economiesnow are competing to attract multinational corporations (MNCs). Inward FDI flows havebeen far exceeding private debt flows until recently in some emerging market economies. Interms of geographic distributio…     

The Effects of Central Banks’ Rate Change Patterns on Financial Market Variables

This study examines whether different patterns of change to the benchmark interest rates of central banks are associated with their contributions to variances in the forecast errors of three financial market variables: the long-term interest rate, the foreign exchange rate, and the stock market index. On average, the central bank’s interest rate accounts for approximately 20% of the variance in each variable. We find that the total range of changes is more important than the frequency of changes. The panel regression shows that the range and frequency of policy rate changes is positively associated with the volatility of long-term interest rates but no association with the volatility of stock prices and exchange rates. These results suggest that small and frequent adjustments of policy rates are desirable for reducing the volatility of interest rates. The panel VAR represents interest rate channel is a more important than exchange rate and stock price channel.     

The Increase of Market Demand and the Choice of Construction Time on City Infrastructure Project- The Case of China

The project construction time is not sufficiently considered in the decision-making procedure of the extant city infrastructure project all over the world. To increase the investment benefit, the text discusses the influence of construction time on investment benefit, the condition of the optimal construction time, the method to confirm the optimal construction time, etc.     

Has the Internet Eliminated Regional Price Differences? Evidence from the Used Car Market

We study the effects of the Internet on regional price differences. Comparing two Dutch regions, we find that before the rise of the Internet, price differences of used cars between those regions amounted to some 11–15%, controlling for mileage, age, fuel type and engine volume. These price differences have completely disappeared after the rise of the Internet, in particular a website that allows consumers to make detailed comparisons between almost all used cars for sale in the Netherlands.     

Decomposing and Analysing the Determinants of Current Accounts’ Cyclicality: Evidence from the Euro Area

Open Economies Review - In this paper, we decompose the current account (CA) balance in 19 Euro area countries into cyclical and non-cyclical components. For the period 1999:Q1 to 2015:Q4, we...     

The Convergence of Price–cost Margins

This paper provides estimates of sectoral price–cost margin (PCM) trends in thirteen OECD countries over the last three decades, once controlled for inflation and cycle effects. It concludes with the absence of a decrease in average PCM. More strikingly, it establishes a clear pattern of PCM convergence both across countries and sectors. This convergence means that high margins have shrunk and low margins grown. Better capital market efficiency might be a driving force in the PCM convergence. These results point to a need to search for factors countervailing the pro-competitive effect on markups. The views expressed in this paper are those of the author and do not necessarily represent those of the OECD or its member countries.