EXTERNAL CAPITAL FLOWS AND WELFARE IN DEVELOPING COUNTRIES

This book studies the welfare effects of external
capital flows in small open developing countries with
special emphasis on primary commodity export dependent
countries. Welfare cost of macroeconomic volatility
in the developing countries is several times larger
than that in the developed countries. Further, most
of this macroeconomic volatility is a result of
exogenous shocks such as terms of trade or world
price changes. External capital flows (coming largely
from official creditors in the case of developing
countries)have
the potential to reduce these fluctuations. Focusing
in particular on aid flows and external debt, I find
that indexing these flows to external shocks can
significantly improve the welfare outcome in
developing countries.

Autorentext

Dr. Anubha Dhasmana is an Assistant Professor of Economics at the
Indian Institute of Management Bangalore, India. Prior to that
she was working as an Economist at the I.M.F. She finished her
PhD. in economics from the Johns Hopkins University, Baltimore,
U.S.A. Her areas of research include international macroeconomics
and development finance.

Klappentext

This book studies the welfare effects of external
capital flows in small open developing countries with
special emphasis on primary commodity export dependent
countries. Welfare cost of macroeconomic volatility
in the developing countries is several times larger
than that in the developed countries. Further, most
of this macroeconomic volatility is a result of
exogenous shocks such as terms of trade or world
price changes. External capital flows (coming largely
from official creditors in the case of developing
countries)have
the potential to reduce these fluctuations. Focusing
in particular on aid flows and external debt, I find
that indexing these flows to external shocks can
significantly improve the welfare outcome in
developing countries.