Journal•ISSN: 0923-7992
Open Economies Review
Springer Science+Business Media
About: Open Economies Review is an academic journal published by Springer Science+Business Media. The journal publishes majorly in the area(s): Exchange rate & Monetary policy. It has an ISSN identifier of 0923-7992. Over the lifetime, 1075 publications have been published receiving 19221 citations.
Papers published on a yearly basis
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TL;DR: In this article, the authors compared the importance of precautionary and mercantilist motives in the hoarding of international reserves by developing countries and found that the welfare gain from the optimal management of international reserve is of a first-order magnitude, reducing the welfare cost of liquidity shocks.
Abstract: This paper compares the importance of precautionary and mercantilist motives in the hoarding of international reserves by developing countries. Overall, empirical results support precautionary motives; in particular, a more liberal capital account regime increases international reserves. Theoretically, large precautionary demand for international reserves arises as a self-insurance to avoid costly liquidation of long-term projects when the economy is susceptible to sudden stops. The welfare gain from the optimal management of international reserves is of a first-order magnitude, reducing the welfare cost of liquidity shocks from a first-order to a second-order magnitude.
453 citations
TL;DR: In this article, the role of institutions in determining foreign direct investment (FDI) was investigated using a panel of 69 countries during 1981 and 2005, and they found that institutions are a robust predictor of FDI and that the most significant institutional aspects are linked to propriety rights.
Abstract: Using a panel of 69 countries during 1981 and 2005, we investigate the role of institutions in determining foreign direct investment (FDI). We find that institutions are a robust predictor of FDI and that the most significant institutional aspects are linked to propriety rights. Using a novel data set, we also study the impact of institutions on FDI at the sectoral level. We find that institutions do not have a significant impact on FDI in the primary sector but that institutional quality matters for FDI in manufacturing, and particularly in services.
250 citations
TL;DR: In this paper, the synchronization of business cycles between new and old EU members using various measures was analyzed and the main findings are that Hungary, Poland and Slovenia have achieved high degree of synchronization for GDP, industry and exports, but not for consumption and services.
Abstract: This paper analyzes the synchronization of business cycles between new and old EU members using various measures. The main findings are that Hungary, Poland and Slovenia have achieved high degree of synchronization for GDP, industry and exports, but not for consumption and services. The other CEECs have achieved less or no synchronization. There has been significant increase in synchronization of GDP and its major components within EMU. This lends support to the argument of OCA endogeneity but there is also evidence of a world cycle. The consumption-correlation puzzle remains, but its magnitude has greatly diminished in the EMU members.
212 citations
TL;DR: In this paper, the authors revisited the popular gravity model of trade in light of the increasingly acknowledged findings of spatial econometrics and interprets the results in view of some recent theoretical developments from the economic literature that contribute to its foundation.
Abstract: This article revisits the popular gravity model of trade in light of the increasingly acknowledged findings of spatial econometrics and interprets the results in view of some recent theoretical developments from the economic literature that contribute to its foundation. When the inherent spatial effects are explicitly taken into account, the magnitude of the estimated parameters changes considerably and, with it, the measures on the predicted trade flows. This result is illustrated for the case of predicted trade flows between the European Union and some of its potential members.
208 citations
TL;DR: This paper investigated the relationship between economic growth and lagged international capital flows, disaggregated into FDI, portfolio investment, equity investment, and short-term debt, and found a large and robust relationship between FDI and growth.
Abstract: We investigate the relationship between economic growth and lagged international capital flows, disaggregated into FDI, portfolio investment, equity investment, and short-term debt. We follow about 100 countries during 1990–2010 when emerging markets became more integrated into the international financial system. We look at the relationship both before and after the global crisis. Our study reveals a complex and mixed picture. The relationship between growth and lagged capital flows depends on the type of flows, economic structure, and global growth patterns. We find a large and robust relationship between FDI – both inflows and outflows – and growth. The relationship between growth and equity flows is smaller and less stable. Finally, the relationship between growth and short-term debt is nil before the crisis, and negative during the crisis.
201 citations