We present a novel approach for analyzing the effects of EU cohesion policy on local economic activity. For all municipalities in the border area of the Czech Republic, Germany and Poland, we collect project-level data on EU funding in the period between 2007 and 2013. Using night light emission...

We estimate a linear approximation of the market potential function derived in geography and trade models. Using a spatial econometric estimation approach, border effects can be identified by a differential impact of neighboring regions' purchasing power, depending on whether two regions are...

While the traditional approach to the adjustment of international imbalances assumes industrialized countries at a similar level of development and with similar production structures, such imbalances have historically been the result of a process of catching up by late-industrializing developing...

Stability is destabilizing. These three words concisely capture the insight that underlies Hyman Minsky's analysis of the economy's transformation over the entire postwar period. The basic thesis is that the dynamic forces of a capitalist economy are explosive and must be contained by...

The hypothesis of the natural resource curse has captivated the economics profession, and since the mid-1990s has generated a large body of policymaking initiatives aimed at dispelling the curse. In this paper, we evaluate how the effect of resource abundance on economic growth has changed since...

Insufficiently flexible labour markets combined with high welfare costs are often thought to be the main cause of unsatisfactory growth in Europe. This paper uses the OECD data on regulation of the product and labour market to confirm the difference in the extent of regulation between US and...

The economic performance of European countries was in general disappointing in the nineties. However, country difference increased, as it was that in some European countries economic growth and productivity accelerated or could match US rates. This paper uses a broad set of performance...

Schumpeterian development is characterised by the simultaneous interplay of growth and qualitative transformations of the economic system. At the sectoral level, such qualitative transformations become manifest as variations in the sectoral composition of production. Following the implementation...

This paper examines the association between participation in global value chains and financial globalisation measured by international net and capital flows. The results show that financial globalisation and the rise of global value chains are related but not two sides of the same coin. In fact,...

This paper advances a dynamic rationale for competitiveness policy that focuses on an economy's ability to evolve in order to achieve high real incomes along with desired qualitative changes in the socio-economic system. It highlights that the ubiquitous 'rationalities of failure,' either of...