The Mexico City Policy (MCP) prohibits the United States Agency for International Development from providing aid to international non-governmental organizations that provide abortion-related services. This paper employs a panel data of 151 developing countries over the period of 1988 - 2010, to...

We construct a model of FDI, risk and aid, where a country loses access to FDI and aid if the country expropriates FDI. We show that: (i) The threat of expropriation leads to under-investment; (ii) The optimal level of FDI decreases as the risk of expropriation rises; and (iii) Under certain...

The lack of a supra-national legal authority that can enforce private contracts across borders makes debt repayment in an international setting contingent on borrowers' willingness to pay rather than ability to pay. This market failure (i.e., inadequate enforcement) causes investment to fall...

This paper examines whether foreign aid in education has a significant effect on growth. We take into consideration the heterogeneous nature of aid as well as the heterogeneity of aid recipients - we disaggregate the aid data into primary, secondary and higher education, and run separate...