Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Determinants of balance of payments:
Broadly speaking, trend behaviour of merchandise exports and imports along with their terms of trade, net invisible earnings and autonomous capital inflows affects a country's BOP. Each one of these variables is a stimulus to growth and determines the long term viability of external sector. First, exports hold the key to achieving a sustainable balance between the requirements of higher growth and of ensuring viability in the external sector. As a determinant, the higher the share of exports in a country's GDP, faster will be the growth of the economy in response to an increase in overseas demand. Second, imports are a positive function of GDP. An intrinsic link between merchandise imports and exports leads to vigorous export growth and high level of GDP. However as expected, import price is negatively related to its volume. Third, among the items of net invisible earnings, a steady and continuous flow of remittances (insensitive to interest rate) does have a positive effect to sustain a high level of trade deficit. Examples of India, Turkey and Philippines are a pointer in this direction. Fourth, services exports hinge on the degree of association and direction of causality between service orientation of the output structure and the share of services in international trade (RBI, Report on Currency and Finance 2002-03, p.133). Fifth, steady foreign investment inflows are promised to support the investment needs of the economy for higher growth and a source of prudent debt management. For, refinancing of costly debts and prepayment of identified high cost debt in external debt management will have a positive impact on BOP capital account.
what is the use of national income statistics as an indicator for a country''s standard of living?
The consumer's utility function is u(x1,x2) = (x1) (x2)^2 (a) Graph his budget constraint for p1 = 3, p2 = 2 and M = 900, and write down the equation for his budget line. (b)
Which of the following will cause property crime to increase? a) An increase in jail terms. b) A decrease in personal incomes. c) An increase in the probability of arrest.
A financial manager wants to design an investment portfolio for a client. The client has $50,000 available to invest, and the planner has identified four investment options for the
Suppose in the Republic of Madison that the regulation of banking rested with the Madison Congress, including the determination of the reserve ratio. The Central Bank of Madison is
In order to observe the correlations between each variable, the most effective method to use is Vector Autoregression (VAR). VAR estimation uses a system of simultaneous equations
Question 1: Critically analyse the costs of inflation. Which of these items is likely to have encouraged many governments in their adoption of inflation as public enemy number
Another area where monetarists differ from Keynesians is money supply and interest rates. In the Keynesian analysis with less than full employment level equilibrium, the interest r
How do countries grow Economic growth? Economic growth is attaining by increasing: • Quantity of resources by investment • Quality of resources by training as well as R
In the late 1990s, a growing number of economists expressed concern that the world policy makers were often focusing too much on fighting inflation, without fully taking into accou
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd