. Third, and most importantly, we present new evidence on the time paths of economic growth, physical capital investment and … liberalization has, on average, robust positive effects on growth, openness and investment rates within countries. We illustrate …

In the presence of economies of scale in the investment technology, trade openness may have non-conventional effects on … the level of investment, its cyclical behavior, and the volatility of the terms of trade. Trade openness may lead to boom …-bust cycles of investment supported by self-fulfilling expectations. The economy may oscillate between 'optimistic' expectations …

In the presence of lumpy investment cost of adjustment, globalization may have non-conventional effects on the level of … investment and its cyclical behavior. Trade openness may lead to a discrete 'jump' in the level of investment, as it may trigger … a discrete change in the terms of trade. Such a shift creates a sizeable boost in aggregate investment. But trade …

such advantages. First, since information on the quality of investment environments in different countries is in many ways …

created by the liquidity constraint faced by over-indebted countries. Often, adjustment/investment opportunities that are …