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The volatility of unanticipated output growth in income per capita is detrimental to long-run development, controlling for initial income per capita, population growth, human capital, investment, openness and natural resource dependence. This effect is significant and robust over a wide range of...
Persistent link: https://www.econbiz.de/10003832092
This essay reviews the relationship between natural-resource abundance and economic growth around the world, and …
Persistent link: https://www.econbiz.de/10011397924
Although international sanctions are a widely used instrument of coercion, their economic effects are still not fully understood. This study uses a novel dataset and an event study approach to evaluate the economic consequences of international sanctions, thereby accounting for pre-treatment...
Persistent link: https://www.econbiz.de/10012500430
We present a multi-country theory of economic growth in which countries are connected by a network of mutual knowledge … knowledge throughout the world explains a period of increasing world inequality after the take-off of the forerunners of the … industrial revolution, followed by decreasing relative inequality. Knowledge diffusion through a Small World network explains the …
Persistent link: https://www.econbiz.de/10011397182
In many OECD countries income inequality has risen, but surprisingly redistribution as well. The theory attributes this …
Persistent link: https://www.econbiz.de/10011409838
. Theory translates into an intuitive econometric system that identifies the causal impact of trade on income and growth, and …
Persistent link: https://www.econbiz.de/10011298529
Utilizing panel data for 19 OECD countries we find suppor t for the hypothesis that a greater degree of product variety relative to the US helps to explain relative per capita GDP levels. The empirical work relies upon some direct measures of product variety calculated from 6-digit OECD export...
Persistent link: https://www.econbiz.de/10009781524
Does trade openness cause higher GDP per capita? Since the seminal instrumental variables (IV) estimates of Frankel and Romer [F&R](1999) important doubts have surfaced. Is the correlation spurious and driven by omitted geographical and institutional variables? In this paper, we generalize F&R's...
Persistent link: https://www.econbiz.de/10009240715
Both global imbalances and financial market (de-)regulation feature prominently among the potential causes of the global financial crisis, but they have been largely discussed separately. In this paper, we take a different angle and investigate the relationship between financial market...
Persistent link: https://www.econbiz.de/10010436581
We analyze whether or not the globalization of capital, "disciplines" governments and improves governance. We demonstrate that globalization affects governance, by increasing a country's vulnerability to sudden capital flight. This increased threat of capital flight can discipline governments...
Persistent link: https://www.econbiz.de/10009488923