According to recent UN projections more than 50 percent of the growth in world population over the next half century will be due to population growth in Africa. Given this, any policy that influences African demography will have a significant impact on the world distribution of income. In this...

This work shows the asymmetric effect of the reduction in transportation costs across different sectors in the process of the Great Divergence. Specifically, the analysis indicates that reductions in transportation costs of industrial goods enhance convergence of the growth rates of trading...

Does trade improve institutions and contribute to long run growth? I develop a theory of trade, in which trade liberalization provides incentive to change institutions in two ways. On the one hand, trade leads to specialization according to comparative advantage, expanding the industries that do...

The current global-imbalance literature (which explains why capital flows from poor to rich countries) is unable to explain China's foreign asset positions because capital cannot flow out of China under capital controls. Hence, this literature has not succeeded in explaining China's large and...

Most of the expansion of global trade during the last three decades has been of the North-South kind – between capital-abundant developed and labour-abundant developing countries. Based on this observation, I argue that the recent growth of world trade is best understood from a...

Our study employs a difference-in-differences technique to test two channels of Dutch disease effects predicted by the theory. First, if there is a deindustrialization in resource-rich countries, then the outflow of resources from the manufacturing sector should put industries with higher...

A lo largo de los tiempos se ha podido comprobar que los países con mayores tasas de crecimiento económico y desarrollo son aquellos que su economía se encuentra mayormente liberalizada. El presente trabajo pretende analizar la conveniencia de la aplicación de un régimen arancelario único...

Economic theory provides several arguments as to why institutions and economic integration determine economic growth through their impact on the diffusion of technology. The empirical evidence for a joint impact of institutions and integration is ambiguous and depends on finding adequate...

In his inaugural lecture of 1953 Hicks conjectured that any uniform expansion of a country's production set would benefit its trading partner. Corden and Ikema later provided conditions on that country's consumption which, if added to Hicks' condition on production, would validate Hicks'...

We extend the model of Nishimura and Shimomura (2002) to consider a two-country framework where under autarky indeterminacy arises in one country but determinacy in the other, and show that indeterminacy could be eliminated when trade takes place between the two