This paper examines the determinants of FDI employment restrictions. We construct a political economy model where the TNE and the government have different objective functions: the TNE maximizes profits, and the host government cares about tax revenue and local employment. We show that the level...

This paper develops a model of government policy toward industrial control and regulation that sheds light on the determinants of differential country experiences in terms of organizational arrangement and enterprise performance. In contrast to the model developed by Shleifer and Vishny (1994...

This paper studies why some efforts at public enterprise reform fail and why others succeed. Economic reforms are intended to increase efficiency and, thus, help sustain long term growth. Yet, many governments have had difficulty sustaining the reforms they initiated and have reintroduced rigid...

This paper examines the fiscal behavior Argentina's provinces during the 1990s. The issue is of particular interest because the rapidly rising provincial debt has played a crucial role in the recent financial crisis in Argentina and the experience holds important lessons for many other countries...

This paper develops a structural model of infrastructure and output growth that specifies the ways in which country characteristics and policies enter the infrastructure-GDP interactions and lead to heterogeneity of steady states and convergence rates across countries and over time. We show that...

This paper re-examines the determinants of trade policy. It extends the Grossman-Helpman model of trade policy to take account of factors besides lobby contributions that may lead politicians to value rents differently across industries. The extension is motivated by the recent empirical finding...

This paper examines the determinants of hidden public debt-that is, government financial commitments and contingent liabilities that do not receive official recognition and explicit budgetary allocations, but are later on assumed by the government as additional debt outside the normal budget....

There is a great deal of variation in the extent of state ownership of enterprises across countries and despite the growing consensus over the benefits of privatization many countries continue to maintain large public sectors. Currently, there are two prominent theories that purport to explain...

This paper theoretically and empirically examines ownership structure in foreign direct investment (FDI) projects. We show that in choosing an ownership structure, foreign investors, local entrepreneurs, and government consider the specific, costly-to-market assets that the participants and the...

This paper develops a long run growth model for a major oil exporting economy and derives conditions under which oil revenues are likely to have a lasting impact. This approach contrasts with the standard literature on the "Dutch disease" and the "resource curse," which primarily focus on short...