Ever since development economics became a field, there has been a search for “the” key to development. Physical capital accumulation, human capital, industrial development, institutional quality, social capital, and a variety of other factors have been the focus at one time or another. As...

Twelve years ago, when I was chief economist of the World Bank, I suggested that the major challenge to development economics was learning the lessons of the previous several decades: a small group of countries, mostly in Asia, but a few in other regions, had had phenomenal success, beyond...

Purpose This paper aims to examine whether integration of national markets fosters innovation in the technologically inferior country. Design/methodology/approach The authors examine a simple game theoretic framework where a technologically backward home firm and a technologically advanced...

Purpose The purpose of this paper is to develop a dynamic model to understand the evolution of the firm size distribution in developing countries. Design/methodology/approach Evidence points to the existence of a “missing middle” in the size distribution of firms in developing countries. In...