In this paper, we address in more detail the question raised in Wacker (2011b): why does foreign direct investment (FDI) generally have a positive impact on developing countries' terms of trade except in the case of South Asia? After arguing that such a negative relationship is generally...

The development accounting literature assumes that sector labor income shares and output per person across countries are not correlated. In this paper, I show that the data reject this assumption for a large set of countries. The labor shares in the manufacturing and the market-services sectors...

The development accounting literature assumes that sector labor income shares and output per person across countries are not correlated. In this paper, I show that the data reject this assumption for a large set of countries. The labor shares in the manufacturing and the market-services sectors...