Research

Peer Reviewed Publications

"The Paradox of Transfers: Distribution and the Dutch Disease" (with Richard Chisik), 2024, Southern Economic Journal, 1–36. https://doi.org/10.1002/soej.12736

Abstract: 

We develop a new model of international trade with nonhomothetic preferences whereby within-country income distribution affects the pattern of trade and economic growth. Alternative forms of foreign transfers, such as foreign aid and remittances, interact with the income distribution in dissimilar manners, which in turn generates differences in spending patterns, production patterns, and the pattern of international trade. In a three sector model with international trade and production we show that while remittances foster economic growth, foreign aid can cause economic stagnation. A production shift to the sector with less long-run growth potential is known as the Dutch disease and in our model the disease is triggered by within-country income differences and the form of the foreign transfer. We empirically verify these hypotheses with data from a panel covering the years 1991–2009 while controlling for the issues of omitted variable bias and the possible endogeneity of foreign aid and remittances. 

"Income Inequality, International Trade and Firm Location" (with Richard Chisik), 2022, Economics Letters, volume 214, 110442.

Abstract: 

In this paper we analyze the effect of within-country income inequality on economic outcomes. We develop a new model of international trade with non-homothetic preferences whereby within-country income distribution affects firm location decisions. In a two-country, three-sector framework with increasing returns to scale and positive trade costs we show that increases in income inequality generates firm movement to countries with more equal income distributions.

"Does inequality drive the Dutch disease? Theory and evidence" (with Richard Chisik, Harun Onder and Bill Battaile), 2017,  Journal of International Economics, Elsevier, vol. 106(C), pages 104-118. 

Abstract: 

In this paper we show that the Dutch disease can arise solely from inequality in the distribution of natural resource rents. Given two otherwise identical countries that differ only in the ownership shares of the natural resource rents, the country with the less equal distribution will have less production of manufacturing goods and less development of learning-by-doing in this sector. As opposed to conventional models, where income distribution has no effect on economic outcomes, an unequal distribution of the resource wealth can generate the Dutch disease dynamics even in countries with an initial comparative advantage in manufacturing. We also provide a range of empirical tests of our model, including both difference and system GMM estimators in a dynamic panel. To disentangle the effects of inequality and institutional quality we purge our inequality measure of any linear or higher order correlations with institutional quality and repeat our system and difference GMM estimations. Our empirical analysis supports the hypothesis that inequality indeed plays a significant role in whether being resource-rich is a blessing or a curse for a country. The more unequal is the distribution of natural resource rents, the stronger is the disease.

Working Papers

“Diversity, equity and inclusion in the field of economics in Atlantic Canada” (with Angela Daley and Lynn Gambin), 2024, R&R in Atlantic Canada Economic Review.

Abstract:

During the fall of 2022, we conducted an online survey of economists in Atlantic Canada to: (1) examine their distribution by dimension of diversity; and (2) characterize climate in the economics profession, both overall and by dimension of diversity. Our results indicate that the proportion of economists who identify as female is smaller compared to the population in Atlantic Canada. The opposite is true for the proportion of economists who are foreign born, those identify as a visible and/or ethnic minority, and economists who speak a different language at home and work. In terms of climate, approximately 40 percent of economists in Atlantic Canada are not satisfied with their work-life balance, almost a quarter do not feel intellectually included in the field, a third do not feel socially included, and more than 40 percent do not feel respected. Likewise, almost 30 percent of survey respondents have personally experienced discrimination in the field and/or their workplace, compared to about 13 percent in the economics profession at the national level. Economists in Atlantic Canada also report personal experiences of harassment in the field and their workplace. Considering differences by dimension of diversity, we find that female economists, those who have a disability, those who are foreign born, economists who identify as a visible and/or ethnic minority, and those who speak a different language at home and work are more likely to face challenges related to general climate, discrimination and harassment in the field and/or their workplace. On balance, this study elucidates the need for policy and practice aimed at improving diversity, equity and inclusion in the economics profession in Atlantic Canada, as well as the characteristics of economists who stand to benefit from such efforts.

Work in Progress

For a full list of my working papers and articles please click here.