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This paper assesses the non linear impact of external debt on growth using a large panel data set of 93 developing countries over 1969–98. Results are generally robust across different econometric methodologies, regression specifications, and different debt indicators. For a country with average indebtedness, doubling the debt ratio would reduce annual per capita growth by between half and a full percentage point. The differential in per capita growth between countries with external indebtedness (in net present value) below 100 percent of exports and above 300 percent of exports seems to be in excess of 2 percent per annum. For countries that are to benefit from debt reduction under the current HIPC initiative, per capita growth might increase by 1 percentage point, unless constrained by other macroeconomic and structural economic distortions. Our findings also suggest that the average impact of debt becomes negative at about 160–170 percent of exports or 35–40 percent of GDP. The marginal impact of debt starts being negative at about half of these values. High debt appears to reduce growth mainly by lowering the efficiency of investment rather than its volume.

Econometrics --- Exports and Imports --- Macroeconomics --- International Investment --- Long-term Capital Movements --- International Lending and Debt Problems --- Economic Growth of Open Economies --- Economic Development: General --- Economic Growth and Aggregate Productivity: General --- Trade: General --- Fiscal Policy --- Estimation --- International economics --- Econometrics & economic statistics --- Exports --- Debt burden --- Fiscal stance --- Debt service --- Estimation techniques --- International trade --- External debt --- Fiscal policy --- Econometric analysis --- Debts, External --- Econometric models --- Yemen, Republic of

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This paper examines whether ESAF-supported programs during 1986-91 had significant independent effects on growth, inflation and the external debt service ratio. Econometric estimates of the Generalized Evaluation Estimator (GEE) identify statistically significant beneficial effects on output growth and the debt service ratio but no effects on inflation. The robustness of these estimates is also examined. Diagnostic tests cast doubt on the applicability of the GEE framework to the ESAF-eligible countries, and the results obtained using it.

Currency --- Debt service ratios --- Debt service --- Debts, External --- Deflation --- Exports and Imports --- External debt --- Fiscal Policy --- Fiscal policy --- Fiscal stance --- Foreign Exchange --- Foreign exchange --- Inflation --- International economics --- International Lending and Debt Problems --- International Monetary Arrangements and Institutions --- Macroeconomics --- Nominal effective exchange rate --- Price Level --- Prices --- Studies of Particular Policy Episodes --- Yemen, Republic of

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Monetary policy in Yemen is largely rudimentary and ad hoc in nature. The Central Bank of Yemen's (CBY) approach has been based on discretionary targeting of broad money without any clear target to anchor inflation expectations. This paper argues in favor of a new formal monetary policy framework for Yemen emphasizing a proactive and rule-based approach with a greater direct focus on price stability in the context of a flexible management of the exchange rate. Although, as in many developing countries, institutional capacity is a concern, adopting a more formal framework could impel the kind of changes that are required to strengthen the ability of the CBY in achieving low and stable rates of inflation over the medium term.

Anti-inflationary policies -- Yemen (Republic). --- Monetary policy -- Yemen (Republic). --- Monetary policy. --- Finance --- Business & Economics --- Money --- Monetary policy --- Anti-inflationary policies --- Antiinflationary policies --- Inflation (Finance) --- Monetary management --- Government policy --- Economic policy --- Price regulation --- Currency boards --- Money supply --- Foreign Exchange --- Inflation --- Money and Monetary Policy --- Price Level --- Deflation --- Monetary Policy --- Macroeconomics --- Currency --- Foreign exchange --- Monetary economics --- Monetary policy frameworks --- Exchange rates --- Exchange rate flexibility --- Exchange rate pass-through --- Prices --- Yemen, Republic of

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This 2004 Article IV Consultation highlights that economic growth in Yemen slowed in 2004 owing to a sharp contraction in the oil sector. Oil production declined by 5.9 percent, reflecting diminishing recovery from aging large oil fields as well as the absence of significant new discoveries. Some progress has been made in structural reforms. The revised General Sales Tax law submitted to parliament in late 2004 included several improvements designed to protect the integrity and simplicity of this tax.

Budgeting --- Investments: Energy --- Macroeconomics --- Public Finance --- Industries: Energy --- Labor --- Energy: General --- Fiscal Policy --- Energy: Demand and Supply --- Prices --- Debt --- Debt Management --- Sovereign Debt --- Taxation, Subsidies, and Revenue: General --- Public finance & taxation --- Investment & securities --- Petroleum, oil & gas industries --- Budgeting & financial management --- Civil service & public sector --- Oil --- Oil prices --- Public debt --- Fiscal stance --- Revenue administration --- Commodities --- Fiscal policy --- Petroleum industry and trade --- Debts, Public --- Revenue --- Yemen, Republic of

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In recent years, the IMF has released a growing number of reports and other documents covering economic and financial developments and trends in member countries. Each report, prepared by a staff team after discussions with government officials, is published at the option of the member country.

Economic history. --- Economic conditions --- History, Economic --- Economics --- Banks and Banking --- Investments: Energy --- Macroeconomics --- Taxation --- Foreign Exchange --- Energy: General --- Banks --- Depository Institutions --- Micro Finance Institutions --- Mortgages --- Energy: Demand and Supply --- Prices --- Labor Economics: General --- Business Taxes and Subsidies --- Investment & securities --- Banking --- Labour --- income economics --- Public finance & taxation --- Currency --- Foreign exchange --- Oil --- Oil prices --- Labor --- Commercial banks --- Commodities --- Oil, gas and mining taxes --- Taxes --- Petroleum industry and trade --- Banks and banking --- Labor economics --- Yemen, Republic of --- Income economics