We show that legal opacity is a strong factor in drug trafficking. We develop a new framework that illustrates how legal opacity influences countries' seizure rates. Legal opacity reduces the detection of illicit flows and increases their volumes because it lowers trafficking costs. We use...

Most research on illicit financial flows (IFFs) has focused on illicit outflows from developing countries and the role of non-state actors in generating IFFs. Less attention has been paid to processes and interfaces through which IFFs enter formal value chains-in effect being 'legalized' before...

Illicit financial flows have recently attracted the attention of academia, practitioners, and multilateral organizations who consider them harmful to economic development. Some observers suggest that many of these flows occur via the misinvoicing of international trade transactions. This study...

We study whether misinvoicing in international trade is reflected in cross-border bank accounts as reported by offshore financial centres. We show that residents hold more offshore wealth when local misinvoicing practices thrive, especially for under-invoiced exports of natural resources. These...

There has been a growing recognition among scholars that politics matters in the distribution of resources in society. However, attempts to use a political economy 'lens' with which to explore causes of poverty and strategies for poverty alleviation have largely ignored elites. By failing to...

Drawing on insights from Latin America, this paper examines the factors that contributed to the use of populist strategies by political parties during recent presidential elections in Kenya, South Africa, and Zambia. Specifically, the paper argues that the nature of party competition in Africa,...

Scholars and policy makers believe that democracy will bring prosperity through integration into the global economy via increased international trade. This study tests two theories as to why democracies might trade more. First, political freedom may be correlated with economic freedom, thus...

The notion that foreign aid harms the institutions of recipient governments remains prevalent. We combine new disaggregated aid data and various metrics of political institutions to re-examine this relationship. Long-run cross-section and alternative dynamic panel estimators show a small...

Using the 2004-05 India Human Development Survey data, we estimate and decompose the earnings of household businesses owned by historically marginalized social groups known as Scheduled Castes and Tribes (SCSTs), and non-SCSTs across the earnings distribution. We find clear differences in...

Mozambique has achieved remarkable macroeconomic success over recent decades, boasting one of the world’s highest rates of GDP growth. However, absolute poverty remains persistent, spilling over into social unrest. To better understand the link between aggregate growth and household welfare,...