growth and volatility in developing countries. The results suggest that it is difficult to establish a robust causal … relationship between financial integration and economic growth. Furthermore, there is little evidence that developing countries … have been consistently successful in using financial integration to stabilize fluctuations in consumption growth. However …

savings, investment, and labour supply in neoclassical models, and to the rate of unemployment in job search models. These …

turn, slowed down growth. In this essay a preliminary reconstruction of the balance of payments on current account allows … us to reject this view. In fact, a net capital inflow made possible to meet the demand for investment boosting economic …

model. We find that i) government spending increases output and induces a simultaneous decline of investment and the current … account, but does not affect consumption; ii) the responses of output and investment are smaller in more open economies, while … simultaneous decline in investment and the current account. …

. There is a growth externality in the tradable sector and agents have imperfect access to international financial markets. By … the tradable sector that boosts growth. Financial frictions generate imperfect substitutability between private and public … reserve accumulation, growth and current account surpluses. The possibility of using reserves to provide liquidity during …

reached in sample, beyond which (initial) debt ends up lowering (subsequent) growth. On average, significantly negative … 140% of exports. Second, we depart from reduced form growth regressions and perform direct tests of the theory on the thus …: (i) investment falls precipitously as it should when it becomes optimal to default; (ii) economic policy deteriorates …

This paper considers the effects of fiscal and financial policy on economic growth in open and closed economies, when … growth versions of the basic OLG model are analysed. We find that intergenerational redistribution policies that discourage … differences in productivity growth rates (in the endogenous growth version of the model) or in their levels (in the exogenous …

of growth. We employ historical data, recent cross-section data, and newly constructed public investment series. Our main … influenced by the scale of the economy, measured by its population; and third, investment in transport and communication is … consistently correlated with growth while the effects of taxation are difficult to isolate empirically. …