This paper introduces international capital mobility in a general equilibrium model of a small developing economy which is characterized by a dualistic economic structure. The model is then used to analyze the positive and the normative aspects of development policies that are often recommended...

This edition of Better Policies for Development focuses on illicit financial flows and their detrimental effects on development and growth. Every year, huge sums of money are transferred out of developing countries illegally. The numbers are disputed, but illicit financial flows are often cited...