Economic theory has identified a number of channels through which openness to international financial flows could raise … productivity growth. However, while there is a vast empirical literature analyzing the impact of financial openness on output … growth, far less attention has been paid to its effects on productivity growth. This paper provides a comprehensive analysis …

productivity (TFP) growth in China. Our primary goal is to test Hicks' induced innovation hypothesis by examining whether technical … change in China has been induced by sharp increase in input prices that have accompanied its rapid economic growth. Utilizing … buffers a long-term decline in TFP growth that would otherwise be quite substantial. We conclude that China's economic growth …

. Economic theory suggests that the impact of exchange rates should vary with the degree of exposure to international competition …

test for cointegrating relationships corresponding to the patterns predicted by theory. We confirm episodes of expansion of … the sectoral expansion being driven by relative demand or productivity shocks to the nontradables sector that lead to …