This paper analyses a large public investment in a construction of a hydropower plant in Lesotho and its implications on the growth and debt sustainability. The paper employs an open economy dynamic general equilibrium model to assess the benefits of a large public investment through...

We discuss past performance and future challenges for the countries of Central and Eastern Europe (CEE). We highlight the successful convergence process of those countries, not least thanks to their integration into European and global value chains. As the external environment changes, so...

Recent literature has explored the relationship between efficiency-adjusted public capital and economic growth. A debate on whether capital grants, and especially EU funds actually contribute to growth has gained prominence lately. This paper empirically assesses the relationship between the...

The Asia Water Development Outlook – a flagship publication by the Asian Development Bank - monitors progress in water security in the Asia Pacific region. For the first time, the 2020 edition documents financing flows that contribute to – or that are needed to enhance – water security in...

We provide a comprehensive survey of the recent literature on the link between productive government expenditure and economic growth. Starting with the seminal paper of Robert Barro (1990) we show that an understanding of the core results of the ensuing contributions can be gained from the study...

This study attempts a first causal examination of the role of state capacity in China's economic performance. Effective state capacity connotes not just ability to extract tax from citizens but also the ability to convert taxes into public investment. Equally importantly, these capacities must...

The trend of economic growth in Colombia shifted from acceleration (since the 30's to the 60's) to deceleration (from the 70's to the 90's). This reversal of the Colombian economic dynamics is related to the tendency reduction of productivity gains. To obtain this result it is proposed that the...

This article studies from a sample of 110 countries between 2006 and 2016, the relationship between Corruption, investment and growth. Using the Panel Smooth Transition Regression (PSTR), we show that there is a non-linearity between growth and investment versus corruption, characterized by a...

China's provision of development finance to other countries is sizable but reliable information is scarce. We introduce a new open source methodology for collecting project-level development finance information and create a database of Chinese official finance to Africa from 2000-2011. We find...

China’s development finance is sizable but reliable information is scarce. To address critical information gaps, we introduce a new open source methodology for collecting project-level development finance information and create a database of Chinese official finance to Africa from 2000-2011....