The paper explains the negative correlation between developing countries' per capita incomes and measures of political risk by relating a government's decision to tax foreign investors to distributional interests in the host country's population. Using a dynamic general-equilibrium model in...

To reveal effects and consequences of high indebtedness on income poverty, this paper explores empirically a linear and non-linear impact of external debt on pro-poor growth in developing and transitional countries. To examine this hypothesis, we test the distribution effect of external debt to...