One of the structural problems in Latin-American has been the lower innovative capacity and lower generation of economically exploitable knowledge. This phenomenon has been produced by the absence of government’s incentives and strategies in order to be competitive inside the Knowledge Based...

In this paper we clarify the impact that barriers to capital accumulation can have on a two-sector neoclassical growth model's ability to explain the observed differences in incomes across countries. We show that the effect of barriers to technology adoption in a two sector model is necessarily...

This paper studies the aid allocation rule used by major development agencies, and investigates optimal allocations when recipients are neoclassical economies undergoing transition dynamics. When recipients face aid absorption constraints, allocations that favor poorer recipients are not always...

We model technological and financial innovation as reflecting the decisions of profit maximizing agents and explore the implications for economic growth. We start with a Schumpeterian endogenous growth model where entrepreneurs earn monopoly profits by inventing better goods and financiers arise...

Following Solow's (2001) recent advice, this paper takes productivity as the left-hand-side variable and offers a cross-country analysis of its determinants. The analysis follows the two-stage methodology, the first of which is devoted to obtaining productivity estimates, and the second stage is...

A two class (rentiers and workers) model of growth and distri- bution is applied to the study of long run stagnation in aggregate demand. The theoretical framework shows the same forces which lead to concentration of wealth and income amongst the class of rentiers, also constrain the aggregate...

Since gaining independence in 1923 until the 2000s when the Republic of Turkey applied for membership in the European Union, volatile trends were recorded in the country in terms of both economic growth and financial performance. In the early stages, lack of human capital and hard currency...

A conventional reading of economic history implies that free market reforms rescued the world’s economies from stagnancy during the 1970s and 1980s. I reexamine a well-established econometric literature linking economic freedom to growth, and argue that their positive findings hinge on two...

The main objective of this paper is to estimate the output elasticity of foreign direct investment (FDI) and imports in Thailand and in the Philippines during the period 1970ñ1998. Applying a CES generalization of Cobb-Douglas production function, the output response to FDI is the same in both...

The article analyses the joint determinants of inequality and growth with a special emphasis on public spending structures in transition. We find especially government expenditures on subsidies to be negatively correlated with both inequality and growth, as more generally government expenditures...