Since the beginning of the eighties there has been an upsurge in the empirical analysis of the political economy of trade restrictions in industrialized and developing countries. These studies, which have been surveyed by Anderson and Baldwin (1981) and Amelung (1989) attempted to explain the...

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...