Effects of commodity price windfalls on external debt: The role of political institutions

Rabah Arezki, Markus Brückner 15 June 2012

a

A

Booming commodity prices have generated large foreign currency inflows for commodity exporting nations. Such inflows, however, are not always associated with positive outcomes for the commodity exporters. Phenomena such as corruption (Bhattacharyya and Hodler 2009) and the ‘natural resource curse’ (Brunnschweiler and Bulte 2012) often plague nations rich in natural resources. The political impact of large foreign currency inflows are important (Brollo et al. 2010), as is the optimal management of the revenue (Van der Ploeg and Venables 2011).

a

A

Topics:  Development Macroeconomic policy

Tags:  resource curse, political regimes, debt

Political regimes and international trade

Toke S. Aidt, Martin Gassebner 16 December 2008

a

A

Two hundred years ago, David Ricardo formulated the principle of comparative advantage and pointed to the associated economic benefits of trade integration. The practical value of this insight has withstood the test of time. It is as apparent in the historical record - trade integration played a major role during the first age of globalisation - as it is from the numerous recent examples of countries that have used international trade to lift themselves out of poverty.

a

A

Topics:  Institutions and economics International trade

Tags:  globalisation, autocracies, political regimes, trade integration