Author ORCID Identifier

https://orcid.org/0000-0003-4411-5400

Semester

Summer

Date of Graduation

2025

Document Type

Dissertation

Degree Type

PhD

College

Chambers College of Business and Economics

Department

Economics

Committee Chair

Arabinda Basistha

Committee Member

Nathaniel Burke

Committee Member

Shuichiro Nishioka

Committee Member

Ann Marie Hibbert

Abstract

This dissertation explores how structural vulnerabilities and external shocks interact with economic policy tools in shaping development outcome. Each chapter addresses a distinct dimension of risk—environmental, macroeconomic, and political—and evaluates mechanisms through which these challenges can be mitigated or amplified. The focus on low-income economies ensures their unique vulnerabilities are integrated into the research question, addressing critical gaps in economic literature.

Chapter 1 addresses how the Sub-Saharan African regions can balance sustainability and development. It uses a time-series methodology to estimate the impact of trade in “green goods” on environmental outcomes. It finds that increases in the trade of environmentally-friendly goods reduce environmental effects. This result has implications for policymakers seeking to align economic growth with environmental preservation in resource-dependent economies.

Chapter 2 challenges the assumption that low inflation is always benign for development. Using a nonlinear methodology and updated data, results find that inflation rates negatively impact growth at lower rates of inflation that previously estimated, and even modest inflation rates strongly and adversely affect populations in poverty. The analysis underscores that central banks in these economies face a dual mandate: stabilizing prices is not just about growth but directly protecting vulnerable populations from impoverishment.

Chapter 3 investigates how political risk reshapes financial lifelines for fragile economies through remittances. Remittances respond asymmetrically to global versus domestic political shocks. Migrants increase flows to home countries facing instability, offsetting consumption declines by 0.4% of GDP. This highlights remittances’ unique role as an informal safety net, urging policymakers to leverage these flows in crisis response strategies.

Together, these chapters provide empirical insights into how risk factors affect macroeconomic outcomes with emphasis on low-income economies. The findings highlight the importance of evidence-based policies that recognize the unique constraints and opportunities across the globe.

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