The cross-country growth literature commonly uses aggregate economy datasets such as the Penn World Table (PWT) to estimate homogeneous production function or convergence regression models. Against the background of a dual economy framework this paper investigates the potential bias arising when...

All of the recent empirical work on the relationship between income inequality and economic growth has used inequality data that are not consistently measured. This paper argues that this is inappropriate and shows that the significant negative correlation often found between income inequality...

There has been a recent resurgence of interest in the relationships between income inequality and growth, trade policy and growth, and growth and poverty. We contribute to this literature by exploring the relationships between inequality, trade liberalisation, growth and poverty in a sample of...

This paper contributes to the literature on FDI and economic growth. We deviate from previous studies by introducing measures of the volatility of FDI inflows. As introduced into the model, these are predicted to have a negative effect on growth. We estimate the standard model using...

This paper uses the Granger non-causality test procedure developed by Toda and Yamamoto (1995) to analyse the saving-growth nexus in Mexico. Contrary to the reverse causation between national saving and domestic income found in recent empirical studies, evidence is presented in favour of Solow's...