Dutch Disease SE Asia.pdf

Levine r and mv carkovic 2002 does foreign direct

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Levine, R. and M.V. Carkovic (2002). “Does Foreign Direct Investment Accelerate Economic Growth? University of Minnesota Department of Finance Working Paper. Masanno, A. and S. Edwards (1982). Export Boom and Dutch Disease: A D ynamic Analysis.” UCLA Department of Economics, Working Paper No. 269. Oomes, N . and K. Kalcheva (2007). “Diagnosing Dutch Disease: Does Russia have the Symptoms? Bank of Finland Discussion Papers No.7. Opoku-Afari, M. (2004). “Measuring the Real Effective Exchange Rate in Ghana.” CREDIT Research Paper No. 04/11, University of Nottingham. Ouattara, B. and E. Strobl (2003). “Do Aid Inflows cause Dutch Disease: A case Study of CFA Franc Countries .” The School of Economics Discussion Paper Series, University of Manchester. Rajan, R. and A. Subramanian (2005). “ Aid and Growth: What Does the Cross-Country Evidence Really Show? IMF Working Paper No. 05/127. Ralph, C., C. Fullenkamp, and S. Jahja (2005). Are Immigrant Remittance Flows a Source of Capital for Development? IMF Staff Papers.52: 55-81. Reinhart, C., G. Leiderman, and H. Leonardo ( 1992). “ Capital Inflows and Real Exchange Rate Appreciation in Latin America.” IMF Working Paper No. 92/62. Sackey, H. A. (2001). "External Aid Inflows and the Real Exchange Rate in Ghana." African Economic Research Consortium (AERC), Research Paper No. 110.
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Journal of Economic Cooperation and Development 69 Soto, M. (2000). Capital Flows and Growth in Developing Countries: Recent Empirical Evidence .” OECD Development Centre Working Paper No. 160. White, H. and G. Wignaraja (1992). Exchange Rates, Trade Liberalization and A id: The Sri Lankan experience.” World Development. 20: 1471-1480. Williamson, J. (1995). The management of capital inflows. Pensamiento Iberoamericano. January-June, Peterson Institute of International Economics.
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70 Dutch Disease Investigated: Empirical Evidence from Selected South-East Asian Economies APPENDEX (A): Variables defined Measurement of real exchange rate The real exchange rate ( RER ) is the price of traded goods relative to the price of non-traded (domestic) goods. In the absence of readily available indices of tradable and non-tradable prices, the real exchange rate has to be proxied by available domestic and world price indices and nominal exchange rates. There is no unique way of constructing a proxy measure, but all commonly used measures compute the ratio, Where NER denotes the nominal exchange rate (measured as domestic currency per foreign currency), PW is an index of foreign prices and PD is an index of domestic prices. NER and PW are weighted averages computed across trading partner countries. The country weights are based on export shares, import shares or, most commonly, shares based on the sum of exports and imports taken from IMF original weights 10 . The countries included are Canada, Japan, United Kingdom, United States, Belgium, France, Germany, Italy, Netherlands, India, Korea, Singapore and Malaysia. The ratio of an index of a country’s period average exchange rate to a weighted geometric average of exchange rates for the currencies of selected countries, weighted by each countr y’s trade, and adjusted for relative changes in consumer prices. Base year =
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