This paper analyses macroeconomic aspects of exit from aid-dependence. By 'exit from aid', we mean substantial and enduring decline over time in Official Development Assistance (ODA) as a share of Gross Domestic Product (GDP). The relevant macroeconomic variables are identified by systematically...

It is often assumed that recent success in the high-technology software industry will lead India's development. However, evidence suggests that basic manufacturing industry is stagnant. This paper proposes a mechanism that ties these two trends together. A big-push type of model, featuring...

Several studies have highlighted that African manufacturing wages are higher than comparator countries at similar levels of development, which contributes to the continent's lower levels of manufacturing competitiveness. This paper derives unit labor costs - average wages relative to...

In the OECD countries, the decline of manufacturing and its employment implications have long been matters of concern. Recently, policymakers in several countries have set out to achieve reindustrialization. The servicification of firms is related to these concerns and aspirations. However,...

The regulatory environment in a country is an important factor that affects firm performance. This study investigates the impact of a particular regulation - license requirements for certain firm activities - on the innovation performance of Indian firms in the 1990s. Using a unique firm-level...

This paper focuses on comparisons of productivity, (unit) labor cost and industrylevel competitiveness for the manufacturing sector of China and India. We first provide a comparison between India and China using a broad international perspective. We find that China has increased its labor...

Among fast growing developing countries, India is distinctive for the role of the service sector. However, sceptics have raised doubts about both the quality and sustainability of the increase in service sector activity and its implications for economic development. Using National Accounts...

Indi's stagnating manufacturing sector has become a serious cause of concern for Indian policy makers. Several reasons have been identified for this slowdown, including lack of policy focus, unsupportive external environment, etc. Given the importance of the manufacturing sector and its...

India has been an exemplary case of economic growth, lionized in the international press as one of the emerging market economies that will take over the world economy in the current century. The Indian services revolution is often cited as an example of an alternative development strategy under...

This paper reconsiders Sinn's (1991) nucleus theory of the corporation by comparing two different regimes for the equity trap. In the first of these, all cash paid to the shareholders is taxed as dividends, in the second, shareholders are allowed a tax-free return of capital contributed through...