Asset trading resolves coordination problems in most currently existing models of coordination failure. We argue that a principal limitation of these models is their ignoring idiosyncratic and aggregate uncertainty in investment returns. We introduce such uncertainty in a standard model of...

Why has growth, especially in exports, in low-income developing and transitional countries been low relative to the rest of the world? Why is it that such countries appear not to be benefiting from globalisation? These are the questions addressed by the studies in this collection, and the...

This study explored the association between export earnings fluctuations and capital formation in Nigeria. Using a reduced form equation built around the flexible accelerator model and adopting a cointegration technique, it discovered that the current level of export earning fluctuations...

Typically, a small and open economy trades goods at given worl prices. Here, we present a model of a very open small economy, where capital and labor are internationally mobile, too. When targeting mobile capital ("FDI"), the economy's government attracts not only mobile capital but mobile...