Globalization improves the prospects for developing countries (DCs) to catch up economically with industrialized countries. Depending on economic policies with respect to openness and factor accumulation, globalization may increase capital and technology flows to DCs, thereby generating a higher...

This paper assesses the extent of international capital mobility in a time series context. It explores the possibility that the current account balance of different OECD-countries contains a unit root. It is shown that if the ratio of the current account balance to GDP is found to be integrated...

In West Germany workers with similar skills earn different wages according to the industry in which they are employed. This finding is no surprise given the institutional rigidities of the West German labor market. But the similarity of the interindustry wage structures in West Germany and in...