Browse

You are looking at 1 - 10 of 16 items for :

  • Investment; Capital; Intangible Capital; Capacity x
Clear All
International Monetary Fund. External Relations Dept.

This paper reviews the development of Iran under the IMF’s assistance. Iran has made considerable use of the IMF’s resources. It joined the IMF in 1945 with an original quota of US$25 million. The quota has been periodically raised and this year reached US$125 million. Total purchases from the IMF by Iran have amounted to US$121 million, and repurchases now total US$107 million, the last transaction being a repurchase of US$3.5 million in July 1965. The World Bank has lent more to Iran than anywhere else in the Middle East.

International Monetary Fund. External Relations Dept.

This paper reviews the World Bank lending for structural adjustment. The World Bank has always stressed the need to use limited investable resources efficiently. It has attempted to identify investment priorities in recipient countries and lent for projects that promised a high rate of return. The Bank’s Operational Manual defines structural adjustment lending as nonproject lending to support programs of policy and institutional change necessary to modify the structure of an economy so that it can maintain both its growth rate and the viability of its balance of payments in the medium term.

ALEXANDER HOFFMAISTER

A model is developed to estimate the effects of export subsidies on the supply of exports. With data for Costa Rica over the 1980s, it is shown that although the export subsidy scheme in operation led to an increase in exports, the direct fiscal costs of the scheme were substantial. Furthermore, the subsidy scheme led to a significant increase in imports. These results suggest that elimination of export subsidies would not have a particularly harmful effect on the trade balance, and would, in addition, increase the fiscal position and generate economic efficiency.

Mr. Jaime Cardoso and Mr. Philip M Young

Abstract

This paper summarizes the authorities’ stabilization efforts, how these efforts were subsequently reinforced by certain key structural reforms, and other related developments that help explain the remarkable performance of the Dominican Republic’s economy in the 1990s during which the country achieved one of the highest output growth rates in Latin America, combined with low inflation, and a much improved external debt profile. The authorities often resorted to external arrears as a means of financing the external current account deficits of the 1980s. Although rescheduling agreements were reached with the international banking community and with the Paris Club of official creditors in the mid-1980s, they met with limited success until the authorities embarked on their stabilization program of the early 1990s. Large and persistent fiscal deficits represented a significant burden for monetary policy. Although at the beginning of the decade more than half of the public deficit was financed by foreign loans, episodes of default on external and domestic government debt led to a progressive drying up of these sources of financing.

Mr. Jaime Cardoso and Mr. Philip M Young

Abstract

Since 1992, the Dominican Republic has experienced an extended period of robust economic growth, declining unemployment rates, modest consumer price inflation, and a generally manageable external position. Indeed, in the second half of the 1990s, the Dominican Republic ranked among the world’s fastest-growing economies, with particularly strong performances in the telecommunications, construction, free-trade zone, and tourism sectors.

Mr. Jaime Cardoso and Mr. Philip M Young

Abstract

During the early 1990s, the Dominican Republic undertook a number of important reforms to liberalize its trade regime. The most significant reforms took place in September 1990 as part of the New Economic Program, when the protectionist regime, which shielded domestic producers with high tariffs and cumbersome nontariff barriers, was largely dismantled. These reforms were consolidated in 1991–92, when the authorities simplified the exchange rate system and introduced a series of tax reforms that eliminated several important trade-based taxes, including all export taxes.

Mr. Jaime Cardoso and Mr. Philip M Young

Abstract

In the 1960s and early 1970s the Dominican Republic enjoyed sustained economic growth together with relatively low inflation. In the late 1970s, however, the country began to experience severe external and internal imbalances. High fuel import prices and international interest rates, the precipitous fall in nonoil commodity prices, and a world recession led to a record external current account deficit of 10 percent of GDP in 1980. The authorities resorted to external arrears accumulation as a means of financing this deficit. At the end of 1980, arrears on commercial transactions amounted to about US$150 million; by 1982 the amount in arrears had jumped to US$436 million and included not only commercial arrears, but also debt-service payments and profit remittances.

International Monetary Fund. Western Hemisphere Dept.
This Selected Issues paper examines the export growth in Colombia. Colombian exports are heavily concentrated in commodities but the large real depreciation since 2015 offers an opportunity to grow nontraditional exports substantially. Colombia’s comparative advantage in noncommodity products was weak in 2013-15, and export diversification was low, partly owing to the commodity price boom. Exports grew moderately in recent years but in line with historical relationships given fundamentals. The export outlook is positive. Given global growth assumptions, the IMF staff’s models predict acceleration in export growth. The historical experience of commodity exporters suffers large real depreciations also paints a positive picture.
International Monetary Fund. Western Hemisphere Dept.
This Selected Issues paper focuses on Venezuelan migration and the labor market. Over 2 million migrants have crossed the border from Venezuela and continue to join Colombia’s labor market—which remains weak overall with rising unemployment and falling participation. There is so far little evidence of displacement effects on account of immigration, however, as the Colombian informal sector has capably absorbed most of the migrant inflow. A more granular view of Colombia’s local labor markets does not show weaker employment outcomes in those that have received the most migrants. However, with many of these workers being highly skilled and attached to the informal sector, evidence of labor misallocation highlights the need to continue integration policies. The government is conducting efforts to accelerate the validation of Venezuelan degrees for easing the integration of professional migrants and high-school educated migrants who wish to continue their university studies in Colombia.
Mr. Shankha Chakraborty and Ms. Era Dabla-Norris
This paper develops a growth model with specialized goods where inefficient and corrupt bureaucracies interact with the provision of public investment services in affecting the productivity of private capital, specialization, and growth. The model provides potential explanations for the contradictory empirical results on the effects of public investment found in the literature as well as for the role of the quality of public infrastructure investment in creating a gap between rich and poor countries. From a policy perspective, the paper suggests that the link between public investment and growth depends critically on the quality and efficiency of public capital.