Globalised markets and production patterns offer favourable opportunities to raise world income. Yet globalisation also fuels conflicts about the distribution of welfare gains within and across countries. Various developing economies are poorly prepared to meet the challenge of fiercer...

Why is GDP so much more volatile in poor countries than in rich ones? To answer this question, we propose a theory of technological diversification. Production makes use of different input varieties, which are subject to imperfectly correlated shocks. As in endogenous growth models,...

It has been hypothesized that technical progress will erode the competitiveness of the manufactured exports of developing countries. The paper tests two assumptions underlying this hypothesis. First, limited technological competence might prevent developing countries from competing effectively...

The claim of globalization critics that the income gap to industrial countries is bound to widen for essentially all developing countries as a consequence of economic globalization is in conflict with empirical evidence. Economic performance differs tremendously across developing countries. We...

Many contemporary development solutions and policy prescriptions place emphasis on the potential for closer integration of poor people or areas with global markets. But the prospects for the reduct-ion of chronic poverty depend in great measure on the nature of the broader economic processes...