Change and Challenge in the World Economy by Bela Balassa (auth.)

By Bela Balassa (auth.)

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In other developed countries, interest rate ceilings have often been combined with credit allocation among competing users. In developing countries, in particular in Latin America, there has been a tendency to keep interest rates artificially low, giving rise to negative real interest rates. As the resulting excess demand for credit has necessitated rationing, governments have intervened in the allocation of credit. Also, a variety of credit preference schemes have been, in effect, providing better terms to favored users.

Walsh, 'Employment and Labor Supply Effects of the Minimum Wage: Some Pooled Timed Series Estimates from Canadian Provincial Data', Canadian Journal of Economics, XVI (1983) pp. 86-97. 14. For a detailed discussion, see B. Balassa, 'Public Finance and Social Policy - Explanations of their Trends and Developments: The Case of Developing Countries', paper presented at the 39th Congress of the International Institute of Public Finance held in Budapest in August, 1983. To be published in the Proceedings of the Congress.

45. J. Kay and J. Sen, 'The Comparative Burden of Business Taxation', Fiscal Studies, IV (1983) pp. 23-28, Table 5. 46. The Economist, 10 December 1983. 47. H. G. Peterson, 'Taxes, Tax Systems and Economic Growth', in H. ), Towards an Explanation of Economic Growth (Tubingen: J. C. B. Mohr, 1981) Tables I and 2. 48. K. Marsden, 'Links between Taxes and Economic Growth, Some Empirical Evidence', World Bank Staff Working Paper No. 605 (1983) Tables 3 and 4. 49. Knoester, p. 567. Essay 2 Disequilibrium Analysis in Developing Economies: An Overview INTRODUCTION Following contributions by Haberler,l Bhagwati and Ramaswami 2 and Johnson,3 Bhagwati4 formulated a general theory of distortions in product and in factor markets.

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