Time dynamics of stabilization theories and responses to debt and financial crises: an analysis Of Mexico, Argentina, Nigeria and Ghana, 1960-2011

Christopher E.S. Warburton ^[1]
1. [1] East Stroudsburg University
  
  East Stroudsburg University
  
  Borough of East Stroudsburg, Estados Unidos
Localización: Applied econometrics and international development, ISSN 1578-4487, Vol. 14, Nº. 2, 2014, págs. 5-24
Idioma: inglés
Enlaces
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Resumen
- This paper uses continuous time series data from 1960 to 2011 to evaluate the contributions of foreign income to domestic macroeconomic stability. Foreign income is operationalized as income from major trading partners. Elasticity and absorption models are used to examine the effects of foreign income on domestic trade imbalances and per capita national income under narrow and broad theoretical propositions of partial and general equilibrium analyses. The reliance on foreign income is shown to be tenuous, but saving has a greater impact on per capita national income. Expansionary monetary policy may be beneficial to growth beyond immediate stabilization challenges.