Using a simple innovation-driven growth model I investigate to what extent labor market regulations underlie the devastating effects of output volatility on long-run growth trends. Empirical analysis conducted for 154 countries over the 1996-2005 period shows that an increase from low values of...

Even as African countries became increasingly indebted, they experienced large-scale capital flight. Some of this was legitimately acquired capital fleeing economic and political uncertainties; some was illegitimately acquired wealth spirited to safer havens abroad. This paper presents new...