The authors attempt to analyze the direct impact of exchange rate volatility on the export performance of ten Central and Eastern European transition economies, as well as its indirect impact via changes in exchange rate regimes. Not only aggregate but also bilateral and sectoral export flows...

By making use of a simple general equilibrium model of a small open economy, the author examines the link between labor mobility and the size of wage inequality in the presence of productive public infrastructure. The paper shows that the provision of public infrastructure plays an important...

The authors examined the long-term changes in household income structure and decline in poverty in three rice-growing villages in the rural Philippines from 1985 to 2004. They found a shift of household income structure away from farm to nonfarm sources, accompanied by a decline in the incidence...

This study proposes a decomposition framework for quantifying contributions of the determinants of poverty to spatial differences or temporal changes in poverty. This framework is then applied to address the issue why poverty incidence is higher in inland than in coastal China. The empirical...

Several R&D-based growth models without scale effects claim that subsidies to R&D are not conductive for economic growth while a faster growing population is. Yet, in an effort to maintain high growth rates, most OECD countries continue to subsidize R&D, while several developing countries are...

The aim of this article is to construct a European production frontier using deterministic methods, and to break down growth and convergence during the period 1980-2001. The results show that EU growth is primarily driven by physical and human capital accumulation, the contribution of which is...

This paper models the allocation of bilateral foreign development aid to developing countries. A simple theoretical framework is developed, in which aid is treated as a private good of a donor country bureaucratic group responsible for bilateral aid allocation. This model is applied to time...

The primary aim of this paper is to examine the relationship between school attainment, school completion, and economic development. In doing so it also examines the effect of other macroeconomic variables on school attainment and completion. Estimation is conducted using a panel dataset of 138...

In this paper we present an endogenous growth model with foreign transfers for public capital formation in order to analyze the implications for growth maximization when the public sector in recipient countries co-finances investment projects. Our main innovation is to show that, first, there is...

Previous studies have found that the returns to education in rural China are far lower than estimates for other developing economies. In this paper, we seek to determine why previous estimates are so low and provide estimates of what we believe are more accurate measures of the returns. Whereas...