This paper investigates the impact of exchange rates on US Foreign Direct Investment (FDI)inflows to a sample of 16 emerging market countries using panel data for the period 1990-2002. Threevariables are used to capture separate exchange rate effects. The nominal bilateral exchange rate tothe...

We examine the interaction between foreign aid and binding borrowing constraint for arecipient country. We also analyze how these two instruments affect economic growth vianon-linear relationships. First of all, we develop a two-country, two-period trade-theoreticmodel to develop testable...

This paper analyzes optimal foreign aid policy in a neoclassical frameworkwith a conflict of interest between the donor and the recipient government.Aid conditionality is modelled as a limited enforceable contract. We defineconditional aid policy to be self-enforcing if, at any point in time,...

This paper discusses the so-called commercial approach to microfinance undereconomic and ethical aspects. It first shows how microfinance has developed from a purelywelfare-oriented activity to a commercially relevant line of banking business. Thebackground of this stunning success is the almost...

Drawing on an ordonomic approach, this paper argues that a theory of global justiceshould incorporate as a pivotal cornerstone a theory of corporate citizenship whichconstructively addresses business firms as agents of social value creation. We arguethat, instead of relying exclusively on...

This paper studies the impact of EMU on portfolio diversification opportunities.

This paper identifies low frequency movements in the time series of return dispersions suggestive of cycles and long swings in return correlations.

Our paper explores the role of time preferences on household debt maturity choice. Wefind that in countries where people are more patient in the long term, planning horizons in householddebt portfolios are significantly longer, as the optimal maturity of loans is considerably higher.The...

By allowing for imperfectly informed markets and the role of private information, we offer newinsights about observed deviations of portfolio concentrations in domestic relative to foreignrisky assets, or “home bias”, from what standard finance models predict. Our model ascribesthe...

We present empirical evidence that the Thai exchange rate is driven in part by international investors' cross-border portfolio rebalancing decisions. Our results are based on two comprehensive, daily-frequency datasets of foreign exchange and equity market capital flows undertaken by nonresident...