We examine the policy implications of relaxing constraints on the educational choice of individuals for economic development. Distinguishing human capital accumulation through schooling and through learning-by-doing and knowledge spillovers, we show that in the earlier stages of development,...

We study the empirical determinants of China's capital flight. In addition to the covered interest differential, our empirical exercise includes a rather exhaustive list of macroeconomic variables and a few institutional factors. Overall, our regression exercise shows that China's capital flight...

How does foreign direct investment (FDI) affect China's industrial productivity? While the topic is important, the relevant empirical studies in the literature have been limited. This paper attempts to close the gap by investigating the issue with panel data in the period 2001-06. Empirical...

We analyze the garlic dispute between Korea and China with the aim of exploring the improved WTO dispute settlement rules that could apply to disputes where WTO accession applying developing countries are involved in. After examining the background of the dispute, we analyze it from both the...

This paper examines the impact of foreign aid on the process of economic development in India by controlling for the degree of financial liberalization. A composite index is constructed using the method of principal component analysis to capture the joint influence of various financial sector...

In this paper we try to understand the phenomenon whereby a large proportion of the population evades tax payments. We present a model which incorporates elements from the theory of information cascades with the standard model of tax evasion and analyze the connection between the decision of a...

What is the relationship between trade and economic growth? Does trade positively affect economic growth? Owing to the ambiguity of this relationship, the empirical relationship has remained open ( <link rid="b23">Rodriguez and Rodrik, 2001</link>; <link rid="b4">Baldwin, 2003</link>). This paper introduces "trade structure" variables,...

The literature on strategic environmental policy has not fully addressed welfare effects of trade liberalization from autarky. In a reciprocal market model of duopoly with transboundary pollution, we study how reductions in transport costs and import tariffs affect the Nash-equilibrium welfare...

This paper examines the impact of economic liberalization on interregional inequality in India. It has been observed in many studies that interregional inequality in India has been steadily increasing over time. This paper is a further confirmation of this result. We have tried to locate the...

This paper examines the impact of exchange rate uncertainty on the timing of foreign direct investment (FDI) with heterogeneous investing motives. We first extend Dixit-Pindyck's real options model to show that while an increase in exchange rate volatility tends to delay FDI of a market-seeking...