International trade is one of the main channels through which the global financial crisis hits developing countries. The recession in the 'global North' triggered by the financial crisis and the resulting slowdown of growth in other major emerging economies will generate declines in demand for...

International trade is one of the main channels through which the global financial crisis hits developing countries. The recession in the ‘global North’ triggered by the financial crisis and the resulting slowdown of growth in other major emerging economies will generate declines in demand...

Using a novel data set for 17 countries dating from 1900 to 2013, we characterize business cycles in both small developed and developing countries in a model with financial frictions and a common shock structure. We estimate the model jointly for these 17 countries using Bayesian methods. We...

Foreign investment is often constrained by two forms of political risk: expropriation and corruption. We examine the role of government corruption in foreign direct investment (FDI) when contracts are not fully transparent and investors face the threat of expropriation. Using a novel dataset on...