We study a simple neoclassical model of investment in a developing country, modified to allow for long-term projects and short-term debt. Early signals indicating low productivity of investment may lead creditors to call loans in early. In such a crisis, firms protected by limited liability...

Has financial liberalization improved the efficiency with which investment funds are allocated to competing uses? In this paper, we address this question using firm-level panel data from 12 developing countries. We develop a summary index of the efficiency of investment allocation that measures...

Climate finance is a key issue at the heart of the international climate negotiations. While progress was made in Cancun, important questions remain to be resolved. These include how much additional finance is needed for mitigation and adaptation, how will the money be raised to meet these...

Historically, episodes of rapid growth are accompanied by significant structural change. In this paper we therefore aim to quantify the extent to which factor accumulation induces structural change and productivity growth in industrializing economies. To fix ideas we present an extension of...

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...

This paper builds on the assumption that OECD countries are (or will soon be) taking actions to reduce their greenhouse gas emissions. These actions, however, will not be sufficient to control global warming, unless developing countries also get involved in the cooperative effort to reduce GHG...

This paper uses annual aggregate data for 36 low or middle income countries covering the period 1995-2001 to investigate the effect of FDI on private investment. It also explores if the relationship between FDI and private investment is influenced by the nature of the political regime, using...

This article contributes to the literature on innovation and development by identifying the determinants of innovation, and the role of intellectual property rights, in industrialized and developing countries. Controlling for sample selection, I find that, in general, the level of intellectual...

This paper analyses the impact of fiscal policy on private investment for a sample of thirty-three LDCs. The paper makes a number of important contributions to the existing empirical literature. Its main contribution is that it is the first attempt to analyse the existence of a non-linear...