This paper studies cross country differences in productivity from an open economy perspective by using a Helpman-Krugman-Heckscher-Ohlin model. This allows to combine tools from development accounting and the trade literature. When simultaneously fitting data on income, factor prices and the...

This paper aims to investigate the relationship between physical infrastructure and economic development of Pakistan. A composite index of physical infrastructure has been constructed through Principal Component Analysis. This has been done by taking into account three different dimensions of...

Developed countries face the risk of a sustained lack of aggregate demand, i.e. secular stagnation. Demand-oriented growth models emphasizing the balance-of-payments constraint raise concerns about attendant adverse growth impacts on developing countries from reduced export growth. These...

This paper provides a simple theory to study how the allocation of public funds between primary and higher education affects human capital accumulation. The allocation is endogenously determined through majority voting. Public funding for higher education is not supported when a majority is...

The purposes of this study were to present the current situation of poverty, economic growth, and economic development for five selected countries in Latin America and to examine the relationship between poverty, economic growth, and economic development through traditional log-linear regression...

This article remark that the activities of the international capital flows and the foreign direct investment increase on the growth process of countries. The economies attach more importance to these two factors in each passing day. On the other hand, the exposure degrees of host countries...

This study aims to examine the absolute and conditional convergence across the 27 EU Member States. To examine the absolute β convergence was used Baumol model (1986) estimated by OLS and Panel Data, and to examine the absolute σ convergence the Quah model (1993) by graphical analysis....

This paper proposes a reassessment of the export-led growth hypothesis focusing on conditioning effects from countries initial level of GDP per worker, human capital stock, and exports share in GDP. For this purpose a panel threshold regression technique was applied over selected cross-country...

The so-called Ricardian model of contemporary economic textbooks differs significantly from the famous numerical example included in chapter seven of the Principles. The difference is not merely with respect to the definition of the four numbers, but also in terms of underlying proposition,...

This paper develops a Ricardian model of trade in which there are indivisibilities in both production and consumption. Indivisibilities give rise to new results compared to the standard model with perfectly divisible production and consumption. Production indivisibility may result in complete...