This paper develops a model to study the impact of trade costs on developing countries' industrialization when sequential production is networked in global value chains (GVCs). In a two-country setting, a decrease in trade costs of intermediate goods is associated with South joining and moving...

This paper presents an integrated overview of the literature linking institutions, financial development and economic growth. From the large body of research on institutional development, the paper first selects those contributions that make it possible to study the role of institutional...