Economic growth in Latin America and the rise of material welfare has lagged behind that of more dynamic areas of the world economy. In a region prone to policy experiments, the policies of the Washington Consensus applied since the 1990s failed to bring sustained growth to most of Latin...

This paper assesses the extent to which foreign direct investment (FDI) in developing countries crowds in or crowds out domestic investment. The core of the paper is the development of a theoretical model for investment that includes a FDI variable and its estimation and testing with panel data...

This paper develops an ordinal index to measure the openness of FDI policy regimes for individual countries. There has been a generalised increase in the index between 1990 and 2002. The most important determinants of variations in FDI flows across countries and over time are country size, the...

This paper estimates a model of fiscal response to analyse the impact of aid on government consumption and investment, tax revenue and public borrowing in Nicaragua in 1966-2004. This country is an interesting case study since aid flows-i.e. grants and aid loans-averaged more than 8 per cent of...

Economic development: the central issue of our times -- Growth, distribution, and human development: an assessment -- Growth models for developing countries -- The role of institutions -- Investment, saving, and capital market development -- Macroeconomic policies for development -- The role of...