This paper uses a novel dataset to test the capital-skill complementarity hypothesis in a cross-section of countries. It is shown that for the full sample there exists evidence in favor of the hypothesis. When we arbitrarily split the full sample into OECD and non-OECD countries, we find no...

Tariffs and other policy distortions typically lower real national income relative to what it otherwise would have been for any given rate of factor accumulation. Even while lowering real income, however, policy distortions may raise an economy's real measured growth rate and so, somewhat...

The paper examines the effects of aid and its volatility on consumption, investment, and the structure of production in the context of an intertemporal two-sector general equilibrium model. A permanent flow of aid finances mainly consumption, a result consistent with the historical failure of...

This paper analyzes export performance in the Middle East and North Africa (MENA) using a gravity model applied to panel data. It addresses two questions: (i) are there significant unexploited export markets for the MENA region?; and (ii) have integration efforts with the EU since the mid-1990s...