This introduction to a special edition of Review of International Economics summarizes a collection of articles that originated in a conference on "Is Globalization of Capital Markets a Boost or a Hindrance to Development?" that was sponsored by the Program in Economic Policy Management (PEPM)...

The paper examines the real per-capita growth effects of the quality of democracy, the rule of law, and capital flows in developing countries. The direct growth effects of democracy are positive and often statistically significant. Moreover, the estimates from a three-stage least-squares...

The paper models the choice between currency boards (CBs) and adjustable pegs (or managed floating). Countries adopting CBs have grown faster and inflated less on average than countries adopting other regimes. The explanation hinges on key features of CBs: policy discipline and inflation...

The field of international trade has been a focus of renewed debate for academics and policy-makers alike. The progressive integration of economics at a worldwide level have led to debates surrounding the migration of labor markets, restrictive trade practices, the impact of foreign investment,...

In a world with two similar, developed economies, economic integration can cause a permanent increase in the worldwide rate of growth. Starting from a position of isolation, closer integration can be achieved by increasing trade in goods or by increasing flows of ideas. The authors consider two...

This paper examines the effects of capital account liberalization on the long-run growth of a developing economy. A general-equilibrium, endogenous growth model is constructed in which corruption forms an integral part of the governance system of the country. By undermining the profitability of...

The paper examines how democracy affects long-run growth by influencing the quality of governance. Empirical evidence is first presented showing that measures of the quality of governance are substantially higher in more democratic countries. A general-equilibrium, endogenous growth model is...