Is tourism an opportunity for lagging countries in the elusive quest for growth (Easterly, 2002)? Recent empirical evidence suggests that the answer is a cautious yes. Aggregate cross-country data show that tourism specialization is likely to be associated with higher per capita GDP growth rates...

It is often claimed that entrepreneurship is indispensable for economic growth and development. These claims are mostly generated by scholars working in the field of entrepreneurship and management studies. In contrast, development economics scholars seem to be less concerned about...

During the last few years, the newly coined term middle-income trap has been widely used by policymakers to refer to the middle-income economies that seem to be stuck in the middle-income range. However, there is no accepted definition of the term in the literature. In this paper, we study...

This paper develops a two-sector model with specific factors of production à la Ricardo-Viner-Jones, in which agriculture is subject to diminishing returns and market-clearing wages, while increasing returns and efficiency wage mechanisms prevail in industry. The asymmetric interaction of the...

The recent increase in the world price of primary commodities has brought back to the forum the issue of the role of natural resources in the development process. Whilst improving terms of trade may help developing countries to grow faster in the short run, doubts still exist on the long-run...