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By taking into account scale economies in transport, this paper challenges the accepted pessimistic view that regional preferential trade agreements (PTAs) between developing countries are harmful in welfare terms. In this paper, we assume the adoption of new transport technology when trade...
This paper tests the performance of the macroeconomic balance (MB) approach (or fundamental equilibrium exchange rate approach) in predicting future movements of real exchange rates (RERs) and current accounts. The analysis is conducted for countries in Sub-Saharan Africa (SSA). Econometric...
The design of grants from central government to local government is an important issue in developing countries. In these countries the decentralisation process involves a vertical gap, i.e. an imbalance between the cost of local public competences and local governments' revenue-raising powers....
I propose a new approach to identifying exogenous monetary policy shocks in low-income countries with capital account restrictions. In the case of Mauritania, a domestic repatriation requirement is the institutional characteristic that allows me to establish exogeneity. Unlike in advanced...
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