Background Globalisation has brought significant benefits to countries' industrialisation, but its impact has not been uniform. Policymakers in developing countries have increasingly focused on sound institutions' role in offsetting the potential negative effects of an integrated economic...

Modeling policy effects in the context of high-dimensional data requires a balanced consideration of omitted interaction bias and overfitting problems. This paper investigates the role of machine learning algorithms in stabilizing estimates and demonstrates the possible regularization bias...