This paper shows empirically that China’s trade balance is sensitive to fluctuations in the real effective exchange rate of the renminbi. However, the current size of the trade surplus is such that exchange rate policy alone will probably not be able to address the imbalance. The potential reduction in the trade surplus resulting from an increase in the renminbi exchange rate is limited mainly ...

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he Asian currency crisis of 1997-98 was characterized by an abrupt reversal of foreign capital flows. Before the crisis, foreign capital inflows had allowed the crisis countries to attain a higher level of investment spending than could have been supported by domestic saving alone. Domestic and foreign investors suddenly lost confidence, liquidating their local asset holdings, and moving their ...

  P redicting the amount of country imports toward assessing trade balance and its effect on the balance of payments (BOP) and finally money supply, general level of prices and the rate of economic growth is of paramount importance. Therefore, economic policymakers seriously need a model which cannot only predict the volume of imports well but also be capable of re...

This paper focuses on Indo-Iranian merchandise trade for a period of 30 years from1980-81 to 2009-10. The study is based on econometric modeling comprising 3 versions of the RWM model and alternative forms and specification of regression functions. RWM model(s) evaluates the stationary nature of time series data relating to GNP, Exports, Imports and total merchandise Indo-Iranian trade. Dickey-...

An optimal commodity tax approach is taken to compare trade taxes and VATs when some commodities are produced informally. Trade taxes apply to all imports and exports, including intermediate goods while the VAT applies only to sales by the formal sector and imports. The VAT can achieve production efficiency within the formal sector, but unlike the trade tax regime, it cannot indirectly tax pure...