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We use the Christensen, Diebold, and Rudebusch (2011) representation of the yield curve to test the functioning of the interest rate transmission mechanism along the yield curve based on government paper in advanced, emerging market, and low-income countries. We find a robust link from the policy and short-term interbank rates to the longer-term bond yields in all countries. Two policy implications emerge. First, the presence of well-developed secondary markets does not seem to affect transmission of short term rates along the yield curve. Second, the strength of the transmission mechanism seems to be affected by the choice of the monetary regime and the level of development: advanced countries with a credible inflation targeting regime seem to have better-behaved yield curves than the countries with other monetary regimes. [ABSTRACT FROM AUTHOR]

Recovery from the recent financial crisis and "great recession" has been slower than after previous recessions in most developed countries and areas, especially Europe. But Europe's growth problem is structural in character and started much earlier. This paper analyzes the structural causes of the European slow growth, evaluates the policies that Europe adopted to overcome it, and concludes that even with the appropriate policies, the prospects for accelerating growth in Europe will be difficult, especially in the context of the current US-China trade war. [ABSTRACT FROM AUTHOR]

Merging recent empirical findings into an overinvestment framework this paper describes a recursive process of monetary policy interactions between industrialised and emerging market economies that provides an explanation of what may have led to the current global low interest rate environment. Based on the overinvestment framework we show that in the prevailing asymmetric world monetary system, monetary policies of industrialised countries can fuel credit booms in emerging markets. We argue that the absorption of inflationary pressure by emerging markets during boom periods and the fear of feedback effects of crises in emerging markets encourage delayed monetary tightening in industrialised countries. [ABSTRACT FROM AUTHOR]

Abstract: This paper examines the existence of any relations between globalization and corruption using cross-section data for 127 countries. The estimation results indicate that, under the assumption of a linear model, a positive correlation between corruption and globalization exists, while when linearity is dropped there seems to be no significant effect of globalization on corruption. According to our analysis, linearity is a good approximation only for middle and high income countries. Hence, our main conclusion is that globalization is a powerful weapon against corruption only for middle and high income countries, while for low income countries globalization has no significant impact on corruption. For such countries fighting corruption requires additional global action aiming at the reduction of poverty. [Copyright &y& Elsevier]

Abstract: Research has shown that defence spending has repercussions on government policies and economic growth. At an international scale these implications, together with current financial difficulties affecting governments, justify the timeliness and interest of studying defence policies from the standpoint of efficiency. Many authors and international bodies such as NATO consider Life Cycle Costing (LCC) the best model for improving the efficiency of military investments. This paper examines the political repercussions in different countries of introducing the LCC model. The research methodology is based on a questionnaire that was replied to by the defence departments of 28 countries, classified as developing or developed. [Copyright &y& Elsevier]

Abstract: This paper introduces a new framework for projecting potential growth of the world economy, emphasizing the contribution of information technology. We first analyze the sources of economic growth for the world economy, seven regions, and fourteen major economies during four periods—1989–1995, 1995–2000, 2000–2004, and 2004–2008. The contribution of investment in information technology has increased in all regions, but especially in industrialized economies and Developing Asia. We then project the potential growth rates of labor productivity and GDP for 122 economies over the ten-year period 2009–2019. Relative to historical growth for 1989–2008, we project lower growth rates for productivity and GDP. [ABSTRACT FROM AUTHOR]

Abstract: This paper, using a dynamic, multi-sector and multi-country Computable General Equilibrium (CGE) model, analyses the combined economic impact of China''s accession to the World Trade Organization (WTO) and the removal of tariff and non-tariff barriers on textiles and apparel by the industrialized countries in China and North America and other major economies. The combined impacts of these two policy initiatives are studied in detail on trade flows, real output, employment and investment both at the aggregate and industry levels in China, the U.S., Canada and other countries/regions. The simulation results suggest that China''s real gross domestic product (GDP) would increase by over 2 percent, mainly due to a large increase in the output of textiles and apparel industries. India too would gain considerably in these two industries from the removal of the trade barriers. Textiles and apparel industries will face considerable adjustment challenges in North America particularly in the U.S. and Canada, implying output and employment losses ranging between 20 and 30 percent. However, the output and employment gains in other North American industries will be more than offset the losses in textiles and apparel industries. Bilateral trade between China and North American economies would increase between 15 and 20 percent, but over all economic gain would be modest. Asian economies will also experience significant increase in trade with China and the output impacts are positive but modest. [Copyright &y& Elsevier]

With the change in donors’ priorities since the end of the Cold War in the late 1980s, there has been a decline in annual aid inflows to Pacific island countries (PICs), which have been among the world's top recipients of aid per capita in the past. Along with fall in aid inflows, growing annual domestic budgetary deficits in recent years have forced some PICs to finance them through borrowing. This paper seeks to examine whether external debt contributed to economic growth in PICs by undertaking a study of six major PICs. [Copyright &y& Elsevier]

Abstract: Energy arguably plays a vital role in economic development. Hence many studies have attempted to test for causality between energy and economic growth; however, no consensus has emerged. This paper, therefore, tests for causality between energy and GDP using a consistent data set and methodology for over 100 countries. Causality from energy to GDP is found to be more prevalent in the developed OECD countries compared to the developing non-OECD countries; implying that a policy to reduce energy consumption aimed at reducing emissions is likely to have greater impact on the GDP of the developed rather than the developing world. [Copyright &y& Elsevier]

Abstract: Several industrialized countries have signed the Kyoto Protocol, promising to reduce greenhouse gasses (GHG) emissions. To reduce or mitigate such emissions several policies including reducing energy consumption, increasing energy efficiency, decreasing energy intensity and forestation may be possible. The viability and effectiveness of each policy may differ due to country specific factors. This paper tries to assess the impact of a change in energy consumption on income and vice versa in G-7 countries. We employ multivariate cointegration, error correction models and generalized variance decompositions and uncover Granger causality relation between energy consumption and income in all countries. However, the direction of causality seems to differ across countries. This may suggest that although they are at the same level of economic development, different policy alternatives in support of the protocol may be available in each country. [Copyright &y& Elsevier]

Economic policy may play a prominent role in favoring transitions from scenarios of no growth to others in which growth is positive. One example of this sort of behavior is the removal of restrictions to the entrance of Foreign Direct Investment (FDI) in developing countries. This paper designs and discusses a simple model in which a change in policy favors the entrance of FDI. Foreign investment, in turn, generates endogenous, non-zero growth in a previously stagnated economy, since FDI is one of the channels, whereby developing countries may access more advanced technology. Next, we present some empirical evidence obtained by exploiting a panel data from 18 Latin American countries over the period 1970-2000. Regressions of the growth rate of GDP per capita on FDI and a set of control variables seem to confirm the hypothesis that FDI promotes growth. The correlation is rather stable and robust to the use of several techniques, to the introduction of alternative control variables and to the consideration of different subsamples. [ABSTRACT FROM AUTHOR]