This paper develops and tests a model of growth in that emphasizes the introduction of new export as the main source of growth in countries that are far within the world technological frontier and that depend for growth on adapting existing products to their economic environment. It seeks to...

This paper applies the overreaction hypothesis of De Bondt and Thaler (1985), developed for stock price behaviour, to capital flows to emerging markets. We find that a surge in capital flows, or what we call a capital boom, can predict future sharp contractions in capital flows, or sudden stops....

Using a large dataset of countries during the last forty years, this paper analyzes the main determinants of export diversification. We explore the role of several factors and we use three different indicators of export diversification. We find robust evidence across specifications and...

Chile has experimented with practically every type of industrial policy in the book: from heavy import substitution, public ownership of domestic firms, directed credit, and heavy use of development banking; to a completely free-market approach. After the liberalization and privatization of the...