Are financial constraints preventing firms from importing capital goods? Sourcing capital goods from foreign countries is costly and requires internal or external financial resources. A simple model of foreign technology adoption shows that credit constraints act as a barrier to importing...

The analysis of structural reforms that took place in the 1990s in India reveals interesting insights in the context of the actual debate for further liberalization of the services sector. Trade liberalization and the reform of the banking sector have improved aggregate productivity of the...