Foreign Exchange Constraints in Economic Development and Efficient Aid Allocation

McKinnon, Ronald I.

doi:10.2307/2228486

Cited by 419 publications

(192 citation statements)

References 5 publications

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“…In particular, it is believed that tourism (i) increases foreign exchange earnings, which in turn can be used to finance imports (McKinnon, 1964), (ii) it encourages investment and drives local firms towards greater efficiency due to the increased competition (Krueger, 1980;Balaguer and Cantavella-Jorda, 2002), (iii) it alleviates unemployment, since tourism activities are heavily based on human capital (Brida and Pulina, 2010) and (iv) it leads to positive economies of scale thus, decreasing production costs for local businesses (Andriotis, 2002;Croes, 2006). Other recent studies which find evidence in favour of the TLEG hypothesis include Sugiyarto et al (2003), Durbarry (2004), Parrilla et al (2007), Croes and Vanegas (2008), Proenca and Soukiazis (2008), Fayissa et al (2011), Pratt (2011), Dritsakis (2012), Eeckels et al (2012), Ivanov and Webster (2013), Surugiu and Surugiu (2013).…”

Section: Introductionmentioning

confidence: 99%

How strong is the linkage between tourism and economic growth in Europe?

2015

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In this study, we examine the dynamic relationship between tourism growth and economic growth, using a newly introduced spillover index approach. Based on monthly data for 10 European countries over the period 1995-2012, our analysis reveals the following empirical regularities. First, the tourism-economic growth relationship is not stable over time in terms of both magnitude and direction, indicating that the tourism-led economic growth (TLEG) and the economic-driven tourism growth (EDTG) hypotheses are time-dependent. Second, the aforementioned relationship is also highly economic event-dependent, as it is influenced by the Great Recession of 2007 and the ongoing Eurozone debt crisis that began in 2010. Finally, the impact of these economic events is more pronounced in Cyprus, Greece, Portugal and Spain, which are the European countries that have witnessed the greatest economic downturn since 2009. Plausible explanations of these results are provided and policy implications are drawn.

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Section: Introductionmentioning

confidence: 99%

How strong is the linkage between tourism and economic growth in Europe?

2015

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“…In particularly, studies indicate that imports of capital and intermediate goods from the Global North have a direct positive effect on firms' productivity in the Global South through embodied high-level technology and advanced production methods (Grossman and Helpman 1991;McKinnon 1964;Thangavelu and Rajaguru 2004). Therefore, through the channel of bilateral trade between the South and North, firms in the developing and least-developed countries may learn to reproduce products or adopt high-level technology from their trading partners in the Global North, either for sale domestically or for the world market.…”

Section: Introductionmentioning

confidence: 99%

The impacts of Information and Communications Technology (ICT) and E-commerce on bilateral trade flows

Xing

2017

Int Econ Econ Policy

107

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This study examines the impact of Internet and e-commerce adoption on bilateral trade flows using a panel of 21 developing-and least-developed countries and 30 OECD countries. Given the commitment of East African Community (EAC) to become the frontrunner in export-led economy across the African continent, special attention is dedicated to analyse the role of ICT and e-commerce on EAC's export performance. The empirical results indicate that better access to the modern ICT and adoption of e-commerce applications stimulate bilateral trade flows at various levels. The study notes that the efficient use of ICT equipped with highspeed internet and secured servers is a crucial milestone for unlocking the e-trade potentials for developing-and least-developed counties.

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“…We assume that the world demand for this export of our home economy is price-inelastic and growing at an exogenously given rate A, so that X = P n e Xt , with n<0, l+n>0. (6) where r\ is the constant price-elasticity of demand.…”

Section: Pranab Bardhan and Sydney Lewismentioning

confidence: 99%

“…From (4) and (8) Before ending this Section we might note that in (6) we have assumed that the world demand for the export of our home economy is price-inelastic (i.e. …”

Section: Pranab Bardhan and Sydney Lewismentioning

confidence: 99%