How Lowering Trade Barriers Can Revive Global Productivity and Growth

By Era Dabla-Norris and Romain Duval

Version in Español (Spanish)

Weak productivity growth in many advanced and emerging market economies in the wake of the global financial crisis is raising concerns about future growth prospects. New research indicates that easing barriers to international trade and foreign direct investment (FDI) could boost productivity and output.

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Openness and Inequality: Distributional Impacts of Capital Account Liberalization

By Davide Furceri and Prakash Loungani

(Version in Español)

It is well accepted that trade generates winners and losers. The past few decades have seen increases not just in trade in goods and services but trade in assets, as countries relax restrictions on the ability of capital to flow across national boundaries. Surprisingly, while the impact of trade in goods and services on inequality has been extensively studied, little attention has been paid to the distributional impacts of opening up capital markets. Our paper fills this gap.

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By | November 24th, 2015|Economic outlook, Economic research, International Monetary Fund|

Convergence, Crisis, and Capacity Building in Emerging Europe

Central, Eastern, and Southeastern Europe has been through a lot. In two short decades, the region moved from a communist planned system to a market economy, and living standards have converged towards those in the West. It has also weathered major crises: first the break-up of the old Soviet system in the early 1990s, then the Russian financial crisis in 1998, and finally the recent global economic crisis. How did these countries do it? From the Baltic to the Balkans, the region’s resilience and flexibility are the result of hard work and adaptability. But more than anything, it is the strong institutions built over the last two decades that have enhanced the region’s ability to deal with the momentous challenges of the past, the present—and those to come.

Trade Winds—Has the Spectre of Protectionism Blown Away?

The global crisis has pushed trade reforms off—or at least to the edge of—the political radar screen. But shying away from improving the trade system may actually jeopardize growth and jobs, and in these tough economic times that seems a little like cutting off your nose to spite your face. The Fund may not be the main player on the trade ‘block’, but we certainly take an interest given its macroeconomic importance. And, in the spirit of moving forward the discussion, and indeed the policies in support of, trade integration, the Fund has three main lines of work in the pipeline.

Seven Pillars of Prosperity—Diversifying Economic Growth in the Caucasus and Central Asia

Medium-term economic growth prospects in the Caucasus and Central Asia region are strong. But, to secure ongoing prosperity, the eight countries of the region—Armenia, Azerbaijan, Georgia, Kazakhstan, the Kyrgyz Republic, Tajikistan, Turkmenistan, and Uzbekistan—will need to look beyond traditional sources of growth. The challenge for policymakers will be to foster new and more diverse growth drivers, outside mining, oil, and gas. There are seven policy pillars that can help them do that, including strengthening economic and financial ties within the region.

By | May 5th, 2011|Economic outlook, Emerging Markets, International Monetary Fund|

Raising Government Revenue in Africa: A Road out of Poverty

Governments in Africa have a prime objective—to reduce poverty. To improve living standards and create jobs, they need to provide their citizens with better health care, better education, more infrastructure. They need to build hospitals, schools, and to pay doctors, nurses, teachers. All this costs money, and how to pay for this—in a way that is both fair and efficient—is a major challenge. With limits to how much a government can receive as grants or borrow, raising tax revenues will be a crucial element for governments to deliver more of these essential services and, in turn, reduce poverty. Policymakers will have an opportunity to exchange views on the challenges of Revenue Mobilization in Sub-Saharan Africa at a conference in Nairobi this week. To help frame that conversation, here are some ideas about priority areas for action.

By | March 21st, 2011|Africa, IMF, International Monetary Fund, Low-income countries|
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