Those fragile states whose stagnation is so tenacious despite generous aid programs, and substantial and costly interventions, are stuck in a 'fragility trap.' Caught in a low-level equilibrium, trapped states appear to be in a perpetual political and economic limbo that can last for years and...

Since recent financial crises in Asia and Latin America, developing countries have been strongly advised to rely primarily on foreign direct investment (FDI) in order to promote economic development on a sustainable basis. Even harsh critics of rash capital account liberalization argue in favor...

The paper examines whether the Arab Spring phenomenon was predictable by complete elimination in the dispersion of core demands for better governance, more jobs and stable consumer prices. A methodological innovation of the Generalized Methods of Moments is employed to assess the feasibility and...

Previous work has investigated whether political instability has a negative effect on economic growth, with mixed results, largely because political instability can take various forms. Using synthetic control methodology, which constructs a counterfactual in the absence of political instability,...

We test the hypotheses that fundamental characteristics in regional proximity, landlockedness, religious-domination, legal origin, and income levels affect cross-country differences in the persistence in political terror and political instability in 163 countries for the period 2010 to 2015. The...