How shifts in the economic leadership between countries can occur has been widely debated not only since the recent catch up of China in several sectors. However, there is no adequate theoretical model analyzing this question in the light of trade liberalization. This paper is the first one to...

This paper investigates the impact of a devastating weather shock on child anthropometrics, using data from Mongolia. We employ a diff-in-diff strategy to identify the effect of an extremely harsh winter in 2010, which caused the death of about 20 percent of the national livestock. Results...

This paper examines whether foreign aid contributes to attracting foreign direct investment (FDI) in aid receiving countries. Using both homogeneous and heterogeneous panel cointegration techniques, I find that the effect of foreign aid on FDI is negative. This is in contrast to previous studies...

Krugman's (1979, 1980) monoplistic competition model of trade showed that countries with more similar per-capita GDP trade more with each other. Does this mean that developing countries shift trade towards developed countries as a result of high economic growth? The results reported in this...

Since the 9/11 attacks more attention has been given to the question why the United States is a major target for transnational terrorism. What conditions motivate these terrorist activities? Are there specific characteristics in the terrorists home countries that provide a breeding ground for...

Understanding the determinants of capital inflows is essential to designing an effective policy framework to manage volatile capital flows and their disruptive potential. This paper aims to identify factors that explain the size and volatility of various types of capital flows to developing Asia...

This paper studies the effects of foreign direct investment (FDI) on national economic growth with the help of GMM panel regressions. Effects on productivity growth, capital and labor inputs as well as innovation activities are distinguished. Furthermore, less and more developed countries as...

In this paper we apply the concept of necessity and opportunity entrepreneurship to rural Vietnam. The aim is to evaluate whether opportunity entrepreneurs in rural areas in developing countries have a greater potential to stimulate endogenous non-farm growth than necessity entrepreneurs. The...

The aim of the present contribution is two-fold. First, we are going to briefly overview the theoretical arguments suggesting that regional economic integration may enhance the process of real economic convergence or catching up by less-advanced members of integration arrangements towards the...

Globalization improves the prospects for developing countries (DCs) to catch up economically with industrialized countries. Depending on economic policies with respect to openness and factor accumulation, globalization may increase capital and technology flows to DCs, thereby generating a higher...