We develop a model where temporary non-technology shocks can lead to permanent changes in the rate of growth of total factor productivity (TFP). The key ingredient of the model is a matching processes between basic researchers, product developers, and the stock of knowledge of the economy. In...

A model is proposed to examine the relationship between interdependence of preferences and economic performance in the presence of an obstruction technology. In such a context the growth rate of the economy is found to depend on the relative effectiveness of the available obstruction and...

Growth of the Korean economy has been sluggish, and this situation is more pronounced in the service sector. We argue that capital misallocation, especially in the service sector, could contribute to this slowdown. Utilizing firm and sectoral level data, first we assess the rising dispersion of...

Empirical explorations of the growth and productivity impacts of infrastructure have been characterized by ambiguous (countervailing signs) results with little robustness. A number of explanations of the contradictory findings have been proposed. These range from the crowd-out of private by...

This research explores the emergence and prevalence of economic specialization and trade in pre-modern societies. It advances the hypothesis, and establishes empirically that population diversity had a positive causal effect on economic specialization and trade. Based on a novel ethnic level...

Ülkemiz, uzun yıllardır istikrarsız bir ekonomik büyüme yaşadıktan sonra, ilk kez 2002–2005 döneminde pozitif ve göreli olarak daha istikrarlı bir büyüme hızı elde etmiş bulunmaktadır. Yine önceki yıllarda kopuk olan büyüme-verimlilik artışı ilişkisi, bu son dönemde...

The literature on aid effectiveness has focused more on recipient policies than the determinants of aid allocation yet a consistent result is that political allies obtain more aid from donors than non-allies. This paper shows that aid allocated to political allies is ineffective for growth,...

This paper models the impact on economic growth of HIV/AIDS when the epidemic is in a mature phase, in contrast with previous studies focused on periods of expansion, as in African countries. Simulations for Honduras, the epicenter of the epidemic in Central America, show that AIDS is not likely...

Sudanese external debts became a chronic problem for the past thirty years. They were first acquired for economic development projects, failed to fulfill that function due to many reasons, economic planning, mismanagement, political turmoil, failure in absorption capacity, corruption…etc. For...