A two-final-good, one-primary-factor, small open endogenous growth model is constructed based on R&D. The model yields two steady states with different growth rates as potential equilibria. Depending on history and the external environment, the economy may fall into the poverty trap in free...

This paper examines the hypothesis that countries which pursue export-promoting (EP) policies are much more likely to converge than countries which pursue import-substituting (IS) policies. The hypothesis is tested statistically in the context of a sample of developing countries that have in the...

Agricultural policy in developing countries is strongly shaped by views about speculation in the foodgrain markets. The central issue is whether speculative expectations are rational. Yet, data availability and the absence of futures markets rarely permits a direct examination of this...

This paper analyzes the economic consequences of illegal migrants in the context of a model of trade and growth. In the model, capital and domestic labor are mobile sectors while illegal migrants are sector-specific. These assumptions give rise to a production possibility curve (with migrants)...