In this paper we investigate if the predictions of three different models of capital adjustment costs are consistent with the observed investment patterns among manufacturing firms in five African countries. We document a high frequency of zero investment episodes, which is consistent with both...

Empirical work in labour economics has focused on rent sharing as an explanation for the observed correlation in cross-sections between wages and profitability. The alternative explanation of risk sharing between workers and employers has not been tested. Using a unique panel data set for four...

The connections between transport infrastructure and economic development have been extensively analyzed in previous research, but little is known about the cost of infrastructure investments in poor countries. This paper examines drivers of unit costs of construction and maintenance of...

The duration of large-scale, violent civil conflict increases substantially if the society is composed of a few large ethnic groups, if there is extensive forest cover, and if the conflict has commenced since 1980. None of these factors affects the initiation of conflict. And neither the...

Post-conflict societies face two distinctive challenges: economic recovery and risk reduction. Aid and policy reforms have been found to be highly effective in the economic recovery. In this paper we concentrate on the other challenge, risk reduction. The postconflict peace is typically fragile:...

In this paper, we use firm-level panel data for the manufacturing sector in four African countries to estimate the effect of exporting on efficiency. Estimating simultaneously a production function and an export regression that control for unobserved firm effects, we find both significant...