Deeper trade integration between Central America and the United States, as envisaged under the Central American Free Trade Agreement, is likely to lead to closer links between Central American and U.S. business cycles. This article assesses the degree of business cycle synchronization between...

In this note work from the end of 2001 to August 2002 is updated in an attempt to disentangle potential contagion and spillover effects of the Argentine crisis from other sources of co-movement or market volatility. We also examine the evidence on FDI flows, inquiring about potentially more...

The relationship between trade liberalisation and informal activity has received little theoretical and empirical attention. The conventional view poses that trade liberalisation would cause a rise in the share of informal production and a rise in informal employment. This article uses three...

"The rest of the paper is organized as follows. The next section uses times series techniques to identify the impact of NAFTA on the income gap between Mexico and the United States. To deal with the big-events little- time problem, we apply two time series methods. First, we follow Harvey in...

Exchange rate policy in many emerging markets shifts between a stronger and weaker commitment to peg. This observation raises the following questions, which we address in our paper: Does intervention policy exhibit switching? And if so, what causes policy to shift? The theoretical literature...

This paper examines the adjustment of developing country labor markets to macroeconomic shocks. It models as having two sectors: a formal salaried (tradable) sector that may or may not be affected by union or legislation induced wage rigidities, and an informal (nontradable) self-employment...

Deeper trade integration between Central America and the United States, as envisaged under the Central American Free Trade Agreement, is likely to lead to closer links between Central American and U.S. business cycles. This article assesses the degree of business cycle synchronization between...

This article operates at the interface of the literature on the impact of foreign direct investment (FDI) on host countries and the literature on the determinants of institutional quality. We argue that FDI contributes to economic development by improving institutional quality in the host...