An Empirical "Dependent Economy" Model for Pakistan
Summary:
While the “dependent economy” approach has been used extensively in theoretical work on developing countries, there is very little empirical analysis of it available in the literature. This paper specifies a dependent economy model which incorporates several developing-country features, including an explicit role for public investment and legal interest rate ceilings. The model is estimated for Pakistan and is used to analyze the country’s recent high growth-low inflation experience. In particular, the contribution that external inflows, in the form of workers’ remittances and concessional lending, may have made in generating this outcome is assessed.
Series:
Working Paper No. 1991/102
Subject:
Consumption Foreign exchange Government consumption Government debt management National accounts Private consumption Public financial management (PFM) Real exchange rates
English
Publication Date:
October 1, 1991
ISBN/ISSN:
9781451852554/1018-5941
Stock No:
WPIEA1021991
Pages:
32
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