In this paper we consider whether the effects of trade liberalisation on GDP growth are offset by changes in other policy variables, namely changes in fiscal policy. Governments increase welfare spending as a response to greater exposure to international trade. We find for a sample of developing countries that this is not the case. Countries that liberalise their trade regimes do increase their...

Technology spillovers o¤er great opportunities for economic growth to developing countries that do little, if any, R&D activity. This paper explores the extent to which these countries bene…t from foreign technology, the di¤usion mechanisms involved, the factors that shape their absorption capabilities, and the sources of heterogeneity in the spillover gains. Results based on a non-stationary p...

We construct a variant of the neoclassical model with endogenous entry and operation decisions by …rms. The model is calibrated to match key features of the distribution of …rms, by age and by size, for the U.S. A higher entry cost leads to a higher degree of misallocation of productive factors across …rms, lower TFP, and lower output. In the data entry costs average 58 percent of per capita GD...

De Long and Summers (1991) began a literature examining the impact of equipment investment on growth. In this paper we examine such a relationship for developing countries by considering imports of equipment from advanced countries as our measure of equipment investment for a sample of 55 developing countries. We examine whether the level of human capital in a country affects its ability to ben...

Does Education Matter for Economic Growth? Empirical growth regressions typically include mean years of schooling as a proxy for human capital. However, empirical research often finds that the sign and significance of schooling depends on the sample of observations or the specification of the model. We use a nonparametric local-linear regression estimator and a nonparametric variable relevance ...

This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate. With official development assistance (ODA) set to rise as cou...

Three novel polyoxoanion-supported compounds modified by conjugated organic ligand tris(2-benzimidazylmethyl)amine (NTB) and nickel ions, [Ni(NTB)(H2O)]2(H2P2Mo5O23)·9.25H2O (1), [Ni(H2O)(NTB)]2(PMoMo(V)O40)·4.5H2O (2) and [Ni(NTB)]2(Mo8O26)·9H2O (3), have been successfully synthesized under hydrothermal conditions at different pH values. The compounds 1-3 contain similar rigid concave surfaces...

This paper uses a tractable macroeconomic model with idiosyncratic human capital risk and incomplete markets to analyze the growth and welfare effects of business cycles. The analysis is based on the assumption that the elimination of business cycles eliminates the variation in idiosyncratic risk. The paper shows that a reduction in the variation in idiosyncratic risk decreases the ratio of phy...

The existing literature establishes possibilities of local determinacy and dynamic indeterminacy in continuous-time two-sector models of endogenous growth with social constant returns. The necessary and sufficient condition for local determinacy is that the factor intensity rankings of the two sectors are consistent in the private/physical and social/value sense. The necessary and sufficient co...

Except for specialized resource economics models, neoclassical economics pays little attention to the role of energy in growth. This paper examines the basic flaws behind the mainstream analytical arguments for this neglect, and provides an empirical reassessment of this role. We use an error correction model in order to estimate the long-run output elasticity of primary energy use in 50 countr...