External Adjustment in a Resource-Rich Economy : The Case of Papua New Guinea /

How should resource-rich economies handle the balance of payments adjustment required after commodity price declines? This paper addresses the question theoretically by developing a simple two-period multi-sector model based on Nakatani (2016) to compare different exchange rate policies, and empiric...

Disgrifiad llawn

Manylion Llyfryddiaeth
Prif Awdur: Nakatani, Ryota
Fformat: Cylchgrawn
Iaith:English
Cyhoeddwyd: Washington, D.C. : International Monetary Fund, 2017.
Cyfres:IMF Working Papers; Working Paper ; No. 2017/267
Mynediad Ar-lein:Full text available on IMF
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020 |z 9781484325063 
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100 1 |a Nakatani, Ryota. 
245 1 0 |a External Adjustment in a Resource-Rich Economy :   |b The Case of Papua New Guinea /  |c Ryota Nakatani. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 2017. 
300 |a 1 online resource (36 pages) 
490 1 |a IMF Working Papers 
500 |a <strong>Off-Campus Access:</strong> No User ID or Password Required 
500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a How should resource-rich economies handle the balance of payments adjustment required after commodity price declines? This paper addresses the question theoretically by developing a simple two-period multi-sector model based on Nakatani (2016) to compare different exchange rate policies, and empirically by estimating elasticities of imports and commodity exports with respect to exchange rates using Papua New Guinean data. In the empirical part, using various econometric methods, I find the statistically significant elasticities of commodity exports to real exchange rates. In the theoretical part, by introducing the notion of a shadow exchange rate premium, I show how the rationing of foreign exchange reduces consumer welfare. Using the estimated elasticities and theoretical outcomes, I further discuss policy implications for resource-rich countries with a focus on Papua New Guinea. 
538 |a Mode of access: Internet 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2017/267 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/2017/267/001.2017.issue-267-en.xml  |z IMF e-Library