This paper examines the effects of the collapse of the communist regimes of Eastern Europe on economic reform in developing countries within a framework earlier developed by Albert O. Hirschman (1964). It is shown that countries relying on help from Eastern Europe, socialist developing...

This paper analyzes empirically the relationship between the structure of property rights and economic growth. Two aspects of property rights are taken into consideration: the degree to which property is state owned and the presence of arbitrary seizure of property. The variable measuring state...

We use a specific-factor model to examine the conditions under which policy-makers are able to increase aggregate production of high-tech goods by production or R&D-subsidies in the short and long run. The difficulties for the policy-makers in designing a subsidy scheme that succeeds in...

A large share of world trade, especially among the OECD countries, is two-way trade within industries, so called intra-industry trade. Despite this, few attempts have been made to examine why countries export some products within industries, whereas they import others. We examine this issue, by...

This paper empirically studies why price distortions are more prevalent in some countries than in others. The authors find no significant difference between democracies and dictatorships but frequent regime changes reduce distortions. Political systems (factional-subordinate) that encourage...

This paper shows that it is impossible to rule out factor-intensity reversals (FIRs) under monopolistic competition unless production functions are homothetic. We construct a simple example where the capital-intensity at unchanged output is fixed, but where FIRs still can occur because...