The Okada & Samreth (2012, EL) and Asongu (2012, EB; 2013, EEL) debate on ‘the effect of foreign aid on corruption’ has had an important influence in policy and academic circles. This paper provides a unifying framework by using investment and fiscal behavior transmission channels in 53 African countries for the period 1996-2010. Findings unite the two streams of the debate and broadly suggest ...

This paper considers a developing nation that faces a foreign exchange shortage and hence its demand for foreign goods is limited both by its income and its foreign exchange balance. Availability of international credit relaxes the second constraint. We develop a simple model of strategic interaction between lending institutions and firms, and show that the availability of international credit ...

Democratic capitalism has become the popular paradigm in the modern world, and it is spreading further through globalization. It is a model based on growth, expansion and constant innovation. However, it is accompanied by social problems which may worsen despite overall gains in wealth. In this paper, we suggest that democratic capitalist societies may benefit from the application of what has b...

Distribution of Natural Resources, Entrepreneurship, and Economic Development: Growth Dynamics with Two Elites This paper develops a model in which the interaction of entrepreneurial investments and power of the owners of land or other natural resources determines structural change and economic development. A more equal distribution of natural resources promotes structural change and growth thr...

This paper presents a contractual framework to investigate the dynamic relation between income inequality and occupational choice in an overlapping generations model. Depending on the natures of equilibrium loan contracts, ex ante expected utilities (or average lifetime incomes) of different occupations in economy are not equal and such inequality persists in the long run. This result is, in co...

Do International Labor Standards Contribute to the Persistence of the Child Labor Problem? In recent years, a number of governments and consumer groups in rich countries have tried to discourage the use of child labor in poor countries through measures such as product boycotts and the imposition of international labor standards. The purported objective of such measures is to reduce the incidenc...

Recent research on growth empirics has been focused on resolving model and variable uncertainty. The conventional approach has been to assume a linear growth process and then to proceed with investigating the relevant variables that determine cross-country growth. This paper questions the linearity assumption underlying the vast majority of such research and uses recently-developed nonparametri...

Two of the fastest growing frontiers in econometrics and quantitative finance are time series and financial econometrics. Significant theoretical contributions to financial econometrics have been made by experts in statistics, econometrics, mathematics, and time series analysis. The purpose of this special issue of the journal on “Frontiers in Time Series and Financial Econometrics” is to highl...

Many Colombians are confronted with the ongoing conflict that influences their decision making in everyday life, including their behavior in labor markets. This study focuses on the impact of violent conflict on self-employment, enlarging the usual determinants with a set of conflict variables. In order to estimate the effect of conflict on self-employment, we employ fixed effects estimation. T...

The paper develops an economic–political model to explain why the convergence hypothesis fails even though good economic policies seem to be a sufficient condition for strong economic growth (Sachs, J., Warner, A., 1995a. Economic convergence and economic policies. NBER Working Paper No. 5039. National Bureau of Economic Research, Cambridge, MA.). The model has three variables: growth, policy, ...