Foreign direct investment (FDI) is observed to be a predominant form of capital flows to low and middle income countries with insufficiently developed capital markets. This paper analyzes the problem of channelling domestic savings into productive investment in the presence of asymmetric...

What is the impact on output of movement towards free trade? Can trade liberalization have a permanent effect on output levels, and more importantly, does it have an impact on steady-state growth rates? The model developed here emphasizes the role that knowledge spillovers emanating from...

An empirical investigation of fiscal effects on saving is carried out with Israeli data, which disply large variability in both the saving rate and the fiscal variables.

This paper develops an overlapping generations model of Social Security and human capital formation in which - somewhat against the conventional wisdom - an increase in the dependency ratio can lead to a reduced tax burden or less generous social transfers. A higher dependency ratio resulting...