North–South Linkages and International Macroeconomic Policy

by David Vines , David Currie

• ISBN13: 9780521462341
• ISBN10: 0521462347
• Format: Hardcover
• Copyright: 1995-09-29
• Publisher: Cambridge University Press

Summary

Researchers have begun to apply economic techniques initially developed to analyse the industrialised countries to analyse North-South interactions in the world economy. This volume, derived from a CEPR conference, brings together theoretical and empirical papers on fiscal, monetary and trade linkages between the North and South. The papers use the advances in the use of the major macroeconomic models to simulate global and inter-regional interactions, and to analyse the implications for the South of macroeconomic developments in the North. They also examine international policy questions in a genuinely global context, and consider the design of policy packages for the Third World (aid versus trade, growth-oriented adjustment) in an empirical context. This volume provides a useful overview of the flourishing research area relating to interactions between North and South, and highlights areas where future research is needed.

Table of Contents

Preface

North-South linkages and international macroeconomic policy: an overview David Vines and David Currie

Part I. Trade Linkages: The Elastic Debate: 2. NIE export performance revisited: the estimation of export demand elasticities, and the role of product differentiation and growth

Vito Antonio Muscatelli

3. Export growth and the terms of trade: the case of the curious elasticities

James Riedel and PREMACHANDRA ATHUKORALA

Part II. Trade Linkages: Commodities: 4. Economic activity and commodity prices: theory and evidence Annalasia Cristini

DiscussionVito Antonio Muscatelli

Part III. Convergence and Growth Linkages: 5. Convergence and growth linkages between North and SouthJohn F. Helliwell and Alan Chung

Discussion Fabrizio Zilibotti

Part IV. Open Economy Macro and Adjustment in the South: 6. Analysing external adjustment in developing counties: a macroeconomic frameworkChris Allen, T. G. Srinivasan, and David Vines

7. Dynamic response to external shocks in Classical and Keynesian economiesKlaus Schmidt-Hebbel and Luis Serven

DiscussionDavid Currie

Part V. Global Scenarios: 8. Macroeconomic effects on developing countries of shocks in the OECD: evidence from multicountry models Ralph C. Bryant and Warwick J. McKibbin

9. Macroeconomic linkages between the OECD and the Asia-Pacific region Warwick J. McKibbin and Mark W. Sundberg

10. MULTIMOD simulations of the effects on developing countries of decreasing military spending Tamim Bayoumi, Daniel Hewitt, and Steven Symansky

11. Effects of a rise in G-7 real interest rates on developing countries Christian E. Petersen and T. G. Srinivasan

12. Quantifying North-South interdependencies with MCM simulationJ aime Marquez

Discussion Beatriz Armendariz de Aghion

13. The consequences of US fiscal actions in a global model with alternative assumptions about the exchange regime in developing countries Ralph C. Bryant and Charles Chukwuma Soludo.