Three essays on applied macroeconomics

dc.contributor.authorScarlett, Hubert
dc.contributor.examiningcommitteeCompton, Ryan (Economics)en_US
dc.contributor.examiningcommitteeLiao, Chi (Accounting and Finance)en_US
dc.contributor.guestmembersIscan, Talan (Dalhousie University)en_US
dc.contributor.supervisorYepez, Carlos (Economics)en_US of Philosophy (Ph.D.)en_US
dc.description.abstractThis thesis consists of three essays that are linked by thread of international economics. The first essay uses a panel vector autoregressive model to study the transmission of economic shocks from the United States (U.S.) to Caribbean economies. Unlike prior studies, this analysis includes remittance and tourism as additional channels of transmission. The results suggest that shutting down the remittance and tourism channels lower the effect of a U.S. economic shock on real GDP. Further, the inclusion of these two channels unearth measurement bias previously attributed to the traditional channels. As such, Caribbean governments should consider these two additional channels when designing countercyclical policies. The second essay investigates if evidence in favour of the J-curve phenomenon depends on a country’s trading partner and, if there is any cross-country evidence of the J-curve. The assessment introduces asymmetric real exchange rate (RER) effects on bilateral trade balance, within an autoregressive distributed lag framework. Introducing asymmetric effects provide greater evidence supporting the J-curve relative to the linear framework, particularly in the annual assessment, where capturing delay in the J-curve is possible. The finding is consistent regardless of the measure of RER or trading partner considered. Unlike the quarterly panel analysis, support for the J-curve is evident in the annual panel but, specific to the country group and RER measure. The results have implications for designing bilateral trade policy if, exchange rate is considered a policy tool to improve trade balance over time. In the final essay, a panel of 45 Emerging Markets and Developing Economies is used to examine if remittances, foreign aid and institutions influence FDI’s effect on economic growth. The results show that the positive effect of FDI on growth as well as on the growth of agriculture and manufacturing value added (VAD) diminishes as the level of institutions increases. The findings also indicate that higher remittances only enhance the marginal effect of FDI in the growth of agriculture VAD. Additionally, FDI’s effect on the growth process is independent of foreign aid and should be treated as such.en_US
dc.description.noteFebruary 2020en_US
dc.rightsopen accessen_US
dc.subjectBusiness cycleen_US
dc.subjectTourism flowsen_US
dc.subjectRemittance flowsen_US
dc.subjectCaribbean economiesen_US
dc.subjectBilateral tradeen_US
dc.subjectNon-linear ARDLen_US
dc.subjectReal exchange rateen_US
dc.subjectEconomic growthen_US
dc.subjectForeign aiden_US
dc.subjectEmerging marketsen_US
dc.subjectDeveloping economiesen_US
dc.subjectAsymmetry effectsen_US
dc.subjectJamaica economyen_US
dc.subjectEconomic shocksen_US
dc.subjectAgriculture value addeden_US
dc.subjectManufacturing value addeden_US
dc.titleThree essays on applied macroeconomicsen_US
dc.typedoctoral thesisen_US
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