This paper presents evidence that the spread between the marginal product of capital and the return on financial assets is mich higher in poor than in rich countries. A model with costly intermediation is developed. In this economy, individuals choose at each instant whether to work or to...

[Introduction] The fundamental development challenge in the Arab region is one of economic transformation or, more pertinent, a lack thereof. Heavy sectoral weights of extractive industries lead to dependence on global oil prices, even in oil-producing countries. The structure of production...

[Introduction] We live in a time of transformational change, with society, economy, ecology and politics in a state of flux the world over. Of particular focus in this Working Paper are the implications for mineral-dependent economies of living in an increasingly resource-constrained world. Both...

The economic profiles of southern Mediterranean countries (SMCs) bear some resemblance to those of south-eastern European countries and some former Soviet republics at the beginning of their economic transition in 1990. The SMCs resemble less the former communist countries that joined the...

Since the mid-1980s a substantial body of research has taken shape on trade in services. Much of this is inspired by the WTO or regional trade agreements, especially the EU. However, an increasing number of papers focus on the impacts of unilateral services sector liberalization. The literature...

This paper studies the Balassa-Samuelson hypothesis in two areas with strong differences in economic development, sixteen OECD countries and sixteen Latin American economies. Applying panel cointegration and bootstrapping techniques that solve for cross-sectional dependence problems in the data,...

The article is based on the idea that geographic proximity is an essential factor for international integration policies due to its impact on the intensity of bilateral foreign trade and growth rate. Development is analysed as a process of structural diversification, whereby the country in...