Tax havens are often connected to growth in tourism, as finance and tourism conveniently share infrastructural prerequisites. This paper addresses the detrimental impacts of a tax haven development strategy adopted by small open economies relation their industry. Utilizing synthetic control method, we find that since 2016 Panama Papers scandal, Panama’s exports have fallen relative an estimated...

The literature has suggested that financial development and electricity consumption are key determinants of economic growth. However, existing studies usually was applied the frequentist inference, which is an outdated estimator. By applying Bayesian approach via Metropolis-Hasting Gibbs samplers as MCMC methods, study aims to re-examine impact on growth in ASEAN+6 countries from 1980 2016. obt...

This article investigates the impact of renewable energy consumption and natural resource depletion on environmental degradation from 1990 to 2014. The analysis this study is distributed into three parts, developing country analysis, developed complete sample analysis. An insignificant relation has found between in case but vice-versa countries. Fossil fuel a positive significant Renewable nega...

the major challenge facing iranian economy is its overwhelming dependence on the oil exports. however, the world oil price has been subject to a lot of shocks, which have destabilized the iranian terms of trade. hence, this paper empirically examines the effect of terms of trade volatility on iran’s economic growth over 1967-2006. for this purpose, based on a garch model, a proxy for the terms ...

This paper investigates resources-related con‡icts in a small open economy through a game-theoretic approach. By endogenising the regime-switching mechanism, it models revolution and repression as the elite-civilian competition for control over resources, which is constrained by the opportunity costs of natural resources and labour. It shows that higher world resource prices tend to trigger con...

International evidence indicates that higher terms of trade levels and lower terms of trade volatility contribute to enhanced growth outcomes, especially for commodity-export and developing countries. New Zealand’s terms of trade have been high and remarkably stable since the early 1990s compared with past experience. We analyse the proximate reasons behind these high, stable terms of trade and...

We study a class of utility functions that are defined recursively by an aggregator W (x, y) where ut =W ( ct , ut+1 ) . In single-agent economies it is known that a sufficient condition for the existence of a balanced growth path is that utility should be homogenous of degree . In the context of a multiagent economy we show that this restriction implies that either a balanced growth equilibriu...

This paper introduces sector-specific externalities in the Heckscher–Ohlin twocountry dynamic general equilibrium model to show that indeterminacy of the equilibrium path in the world market can occur. Under certain conditions in terms of factor intensities, there are multiple equilibrium paths from the same initial distribution of capital in the world market, and the distribution of capital in...

Global Aging and Fiscal Policy with International Labor Mobility: A Political Economy Perspective This paper uses an overlapping generations model with international labor mobility and a politically responsive fiscal policy to examine aging in developed and developing regions. Migrant workers change the political structure composed of young and elderly voters in both labor-receiving and labor-s...

This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate. In this paper, the IMF’s new Global Economy Model (GEM) is us...