This paper investigates whether resident enterprise managers have an informational advantage about the countries where they work. We test this informational advantage hypothesis by using a unique dataset, the Global Competitiveness Survey. The findings suggest that local managers do have...

Markets have had limited success predicting crises and might do better by drawing on private information available to resident enterprise managers, who seem to know better than markets about future movements in exchange rates.Kaufmann, Mehrez, and Schmukler investigate whether resident...

Poor governance can affect greatly public service delivery, both directly through higher price, and indirectly through lower quality or quantity available. When seeking a public service, users may be required to pay in bribes significantly more than the official price. Consequently, some users...

Lack of transparency increases the probability of a banking crisis following financial liberalization. In a country where government policy is not transparent, banks may tend to increase credit above the optimal level.Mehrez and Kaufmann investigate how transparency affects the probability of a...