The paper provides a reconciliation of Lucas' paradox, based on fixed setup costs of new investments. With such costs, it does not pay a firm to make a small' investment, even though such an investment is called for by marginal productivity conditions. Using a sample of 45 developed and...

Like other continents, Africa has seen and is still experiencing a large share of economic and political development. Moreover, the new African economic and commercial stimulants between 2000 and 2008 saw real gross domestic product (GDP) rising by 4.9 percent, double its speed as in the 1980s...