- In the Harrod-Domar model, if the savings rate is 20% and the incremental capital output ratio is five, abstracting from depreciation, what is the implied growth rate?
- Why must projects be appraised? What do we learn from project appraisals?
- How does the Washington Consensus differ from the Santiago Consensus?
- What economic benefits might a developing country gain by reducing corruption? Discuss only economic benefits and provide examples from specific developing countries.
- Briefly explain the major argument of the factor endowment trade theory.
- Provide a concise statement about the relationship between a developing country’s emphasis on the export of traditional commodities and: (a) export earnings stability; (b) comparative advantage; (c) terms of trade.
- State three country characteristics that encourage and three that discourage economic integration among developing countries.
- What is an overvalued exchange rate? What factors may cause a country’s currency to become overvalued?
- Explain what is meant by capital flight. How would you distinguish capital flight from the normal desire of investors to diversify their portfolios by investing abroad?
- What economic variables would you need to consider in order to distinguish between a developing country with a short-term balance of payments problem and one in a debt crisis?Explain what data you would need to look at and why.
- Why may the debt crisis be only “sleeping” rather than “dead?”
- It has been argued that tied aid leads to inefficiencies in the recipient country’s economy. Explain how this could occur.
- State three major potential advantages of foreign direct investment for a developing country. State three major potential disadvantages.
- Explain the motives of developed countries in providing foreign aid.
- Why does multinational corporation investment not necessarily offer the advantage of domestic employment expansion?
- What are the main forms through which foreign capital flows into LDCs? Discuss the evolution of the various forms across the last decade.
- Compare and contrast the workings of the organized and unorganized money markets in developing countries.
- What are some of the major characteristics of financial repression? To what degree may financial liberalization be expected to address the issue of inadequate saving?
- In what ways do the actual and potential roles of central banks differ between developed and developing countries?
- What is a development bank? What are some of the reasons they have not had greater success?
- Describe the costs and benefits of privatization of state-owned enterprises. In which cases would privatization seem most advisable?
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