Frankel and Rose (1998) reassessed the Mundellian criteria on OCAs and considered their application to be untenable, since trade integration and cycle synchronisation may be endogenous. This research aims at testing this hypothesis for Mercosur countries. In particular it intends to evaluate...

We use the establishment of Special Economic Zones in China to estimate the effect of economic reforms on GDP. A panel of 270 Chinese cities from 1988 to 2010 allows us to exploit the variation in the establishment of zones across time and space. The results from our baseline...

Foreign Direct Investment (FDI) has surged in Latin America (LA) since the mid 1990s. European and North American FDI is of capital importance. We investigate the FDI-growth nexus in LA allowing for different source countries, regional heterogeneity, more than 20 growth determinants, and...

Even though most countries have agreed to a harmonization of intellectual property rights by signing the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), there is still much dispute about the optimal level of protection of intellectual property rights in the world....

In the course of growth, sectoral data features (i) changing relative expenditures of different sectors, (ii) non-constancy in the growth rates of relative prices and (iii) shifting relative TFP growth rates of sectors. This paper presents a simple model of directed technical change, which is...

This paper analyzes the effect of migration and remittances on a small, open, migrant-sending country in the context of an endogenous growth model with technology transfers. The paper demonstrates that, due to a dynamic feedback effect from economic conditions to migration and from migration to...

In the center of this paper there are two questions: ’Is it true that globalization is to a crucial degree dependant on technical innovation?’ and ’Can globalization be regarded as a determinant of economic growth and technical progress?’. To answer these questions the paper provides a...

This paper proposes a new mechanism based on the allocation of labor to help understand why differences among countries have remained stable. We formulate a neoclassical growth model in which agents devote time either to produce or to commit predation. Labor share is the key variable which...

We analyze the transitional dynamics of an endogenous growth model with heterogeneous consumption goods. In this model, convergence is driven by two different forces: the diminishing returns to capital and the growth of the relative price between physical and human capital. Because this second...

Market imperfections may lead to underinvestment in dynamic general equilibrium models. An interesting but unexplored question is whether policy interventions which attenuate underinvestment gaps necessarily imply that consumption will initially decline. By employing a calibrated version of a...