Applying the growth identification and facilitation framework : the case of Nigeria

This paper applies the Growth Identification and Facilitation Framework developed by Lin and Monga (2010) to Nigeria. It identifies as appropriate comparator countries China, India, Indonesia, and Vietnam, and selects a wide range of industries in which these comparator countries may be losing their comparative advantage and which may therefore lend themselves to targeted interventions of the government to fast-track growth. These industries include food processing, light manufacturing, suitcases, shoes, car parts, and petrochemicals. The paper also discusses binding constraints to growth in each of these value chains as well as mechanisms through which governance-related issues in the implementation of industrial policy could be addressed.Environmental Economics&Policies,Labor Policies,Economic Theory&Research,Transport Economics Policy&Planning,E-Business

The unexpected global financial crisis : researching its root cause

The world is currently still struggling with the aftermath of the worst economic crisis since the Great Depression. Following a description of the eruption, evolution and consequences of the global crisis, this paper reviews alternative hypotheses for the causes of the global financial crisis as well as their empirical evidence. The paper refutes the frequently voiced view that the global crisis was caused by global imbalances that reflected economic policies of East Asian countries. Instead, it argues that global imbalances were the result of excess demand in the United States, resulting from both the public debt in the United States arising from the Afghanistan and Iraqi wars and tax cuts and the overconsumption by households supported by the wealth effect from the housing bubble in the United States. The housing bubble itself was the outcome of the Federal Reserve's low interest rate policy in the aftermath of the burst of the"dot-com"bubble in 2001, the lack of appropriate financial regulation, and housing policies aimed at expanding the mortgage market to low-income borrowers. It was possible to maintain the large trade deficits of the United States for such a long period of time because of the dollar's reserve currency status. When the housing bubble in the United States burst, the global crisis ensued. The paper also analyzes why China's trade surplus increased significantly in general and with the United States in particular in recent years, and argues that this increase was caused by both the relocation of the labor-intensive tradable sector of East Asian economies to China and high corporate saving rates in China as a result of its dual-track approach to reform.Debt Markets,Currencies and Exchange Rates,Emerging Markets,Economic Theory&Research,Access to Finance

Stabilization Policies and Structural Reforms in Albania Since 1997

This paper assesses the effectiveness of stabilization policies and structural reforms in Albania since 1997 and seeks to identify the remaining key challenges in various policy areas. It also draws lessons for other transition economies from the recent Albanian experience. While progress has been made toward macroeconomic stability and the establishment of a modern institutional framework, much remains to be done to enhance the sustainability of the recent favorable macroeconomic performance and reduce unemployment and poverty. Crucial areas of reform are the creation of functioning institutions, notably in the judicial field, and the establishment of a reliable supply of electricity, which has recently become an obstacle for rapid growth.

Broad Money Demand and Monetary Policy in Tunisia

The development of empirical foundations to the conduct of monetary policy in Tunisia is the central concern of this paper. Finding stable money demand functions, it broadly corroborates the choice of monetary aggregates as intermediate targets of monetary policy by the Tunisian Central Bank. It finds, however, a lower income elasticity than the one currently applied by the Central Bank and proposes a different methodology for defining monetary growth targets. The paper also finds that both interest rates and reserve money are feasible operating targets and suggests that the Central Bank orients its monetary policy more towards transparent operating targets.

Tanzania's Growth Process and Success in Reducing Poverty

Since 1995, Tanzania has made major progress in economic reform and macroeconomic stabilization, resulting in strong growth and low inflation. This paper reviews Tanzania''s growth performance and prospects and assesses the impact of growth on poverty. It finds that growth has been increasingly driven by higher factor productivity and that a continuation of recent policies should allow Tanzania to grow above 5 percent a year over the medium term. Furthermore, it finds that growth since 1995 has resulted in a significant decline of poverty and that prospects are favorable for Tanzania to attain its objectives for reducing income poverty by 2015.Poverty;Economic growth;Poverty reduction;per capita income, growth rate, growth rates, total factor productivity, gdp growth, growth accounting, terms of trade, skilled labor, per capita income growth, real gdp, trade regime, export growth, gdp growth rate, regional integration, pro-poor growth, import duties, factor shares, aggregate demand, domestic market, trade shock, export crops, gdp per capita, intermediate goods, income distribution, value-added tax, gdp growth rates, external tariff, international standards, sectoral growth rates, agricultural exports, exchange rate risk, export performance, external shocks, neighboring countries, liberalization of trade

Financial Sustainability and Reform Options for the Albanian Pension Fund

This paper studies the financial sustainability of the Albanian pension fund and assesses possible options for its reform. The paper concludes that the pension fund is not sustainable in its current form and proposes for the urban scheme a combination of parametric changes to the existing pay-as-you-go system that would be conducive to broadening the contribution base and strengthening the financial performance of the pension fund. In addition, it proposes the establishment of a voluntary funded pillar in the urban scheme. For the rural scheme, the paper concludes that it should either be merged with the scheme for the urban self-employed or be replaced by a mandatory and funded second pillar. The paper also proposes administrative reforms to strengthen revenue collections.Transition economies;pension, pension fund, benefits, retirement age, pensions, retirement, contribution rates, wage, early retirement, compensation, pension funds, salary, wages, pensioners, contribution base, salaries, old-age pensions, minimum wage, dependency ratio, average pensions, minimum pension, compensation payments, supplementary pensions, labor force, contribution period, pension system, state pension, revenue collection, pension schemes, wage earners, private pension, maternity benefits, multi-pillar system, pillar system, compensation benefits, retirement ages, mandatory scheme, public pension, multi-pillar reforms, gross wage, pension benefits, aging populations, worker, private pension funds, pension systems, average monthly pension, retirement benefits, public sector wage, wage levels, public pension schemes, pay-as-you-go system, average pension, pension rights, revenue collections, funded accounts, contribution rate, informal sector, health care, private pension fund, pension regimes, life expectancy, unemployment insurance, average benefit, wage level, additional pension, unfunded pension, defined contributions, pensioner, compensation schemes, pension liabilities, pension formula, pension spending, pension base, public sector wages, supervisory framework, unfunded pension liabilities

Entry barriers to the offshore oil service and supply industry in the United States for foreign companies

Available from Bibliothek des Instituts fuer Weltwirtschaft, ZBW, Duesternbrook Weg 120, D-24105 Kiel C 174108 / FIZ - Fachinformationszzentrum Karlsruhe / TIB - Technische InformationsbibliothekSIGLEDEGerman

Oman Beyond the Oil Horizon

With the steady increase of crude oil production and the surge in oil prices in the mid- and late 1970s, Oman embarked upon an economic development path that transformed it into a prosperous country. Today Oman boasts impressive physical infrastructure, much improved socioeconomic conditions, and a high standard of living. The purpose of this background study is to contribute to a better understanding of developments in the Omani economy since 1980 and of the policy challenges the government faces in the medium term. The study focuses on some central aspects of Oman's economic experience, including the potential structural impediments to growth.