This paper begins by documenting a significant challenge for macroeconomic policy-makers in China, namely a spatial dimension that sees considerable asynchronization in business cycle fluctuations across the country’s 31 provinces. This asynchronization points to potential benefits from...

Africa is a case of structural change without industrialization and without diversification. Agriculture�s decline was matched by an increase in services and non-manufacturing industry, with manufacturing remaining low and stagnant throughout the post-colonial period. To what extent do...

The most favourable scenario for poverty reduction combines positive growth and redistribution. We study the conditions and policies that allow a country to achieve this scenario. Methodologically, we depart from the existing literature and estimate a single equation model where the dependent...

The paper studies the effect of resource abundance on human development. A simple theory is presented to show that resource abundance negatively affects human development through its effect on inequality. The prediction of the theory is then tested using a system of three equations. Estimates...

A system of three endogenous equations is used to estimate the determinants of poverty eduction. The system incorporates: (i) the direct effect of growth and income inequality on poverty, (ii) the feedback effect of poverty on inequality and growth, and (iii) different channels through which...

On the question of whether natural resources kill growth, the jury is still out. While waiting for a decision, we provide evidence that Mother Nature is responsible for slowing down social development over and above any effect it might have on income or growth. We define social development by a...

The paper documents three pieces of empirical evidence on fiscal policy in Africa. First, a bigger government increases the volatility of output growth. Second, fiscal policy has substantially Keynesian effects. Third, fiscal policy instruments in Africa behave either pro-cyclically or...