Medium-terms shifts in the structure of world demand affect the sectoral composition of domestic output, trade and employment. A sustained reduction of global current-account imbalances implies a decline in the share of household consumption in aggregate demand in the United States and the...

The global crisis has disrupted the favourable external environment that made export-led development strategies viable. Developing countries can compensate for the resulting decline in aggregate demand growth through domestic demand if their domestic markets are sufficiently large and if they...

The paper reviews the literature on the fallacy of composition with an emphasis on labour-intensive manufactures. It briefly addresses the protectionist and the partial-equilibrium versions of the argument before focusing on general-equilibrium considerations and the debate on the manufactures...

Financial investment has become increasingly important on commodity exchanges. This paper distinguishes two types of financial investors and emphasizes differences in their position taking motivation and price impacts. Index traders follow a passive strategy holding virtually only long...

The paper examines how developing countries can use existing policy space, and enlarge it, without opting out of international commitments. It argues that: (i) a meaningful context for policy space must extend beyond trade policy and include macroeconomic and exchange-rate policies that will...

Globalization has drastically improved access of technological latecomers to advanced technologies and, to the extent that technological upgrading is important for development, it provides a unique opportunity for low-income countries to raise per capita income. This paper shows that low-income...

Technology Diffusion, Human Capital and Economic Growth in Developing Countries This paper (i) uses a newly constructed dataset on machinery imports from both developed and developing countries with significant domestic R&D expenditure to assess technology transfer to developing countries, and...

The paper draws broad predictions from the developmental elements of new economic geography models and subjects them to empirical scrutiny. Industrial activity has spread from developed to geographically close developing countries in sectors that are intensive in immobile primary factors and not...

The impact of ATC-termination on the rise in China’s market share in global textiles and clothing trade is likely to be lower than often suggested by CGE models because the models (i) neglect the industry structure and sourcing strategies of buyers; (ii) take insufficient account of current...

New trade and endogenous growth theories are discussed, and their findings taken to interpret technological innovation and human-capital accumulation as being the engines of structural diversification. Structural diversification is seen as being the result of dynamic learning sequences, where...