By relying on a new dataset, this paper presents an econometric strategy to test the Fenoaltea’s thesis with regard to both the genesis of current account fluctuations and of the investment cycle. We perform a Granger causality test that shows that the persistent current account deficits in...

We take a long-term perspective (1900-2008) to examine the causal relationship between foreign trade and economic growth for Spain. Results from both Johansen's (1988) and Toda and Yamamoto's (1995) methodologies are quite consistent. For the first six decades of the 20th century, a sub-period...

Since 1981, the United States has managed a trade deficit that has become more negative with each passing year. Yet, economic growth has been on a positive trend. Is there a relationship between the two? Using annual data from 1950 to 2014, this article investigates the causal relationship...

The purpose of this research is to estimate the dynamic impacts of foreign direct investments (FDI) and exports on economic growth in Peru (1970-2020) using annual series. Starting with the theoretical Mundell-Fleming static model with assumptions, we find that the change in exports does not...

The causes of the USA's exceptional economic performance are investigated by comparing American wages and prices with wages and prices in Great Britain, Egypt, and India.  Habakkuk's views on the causes of American industrial pre-eminence are reassessed.  While the USA had abundant natural...

Brunnschweiler and Bulte (2008) provide cross-country evidence that the resource curse is a "red herring" once one corrects for endogeneity of resource exports and allows resource abundance affect growth. Their results show that resource exports are no longer significant while the value of...

Brunnschweiler and Bulte (2008) provide cross-country evidence that the resource curse is a “red herring” once one corrects for endogeneity of resource exports and allows resource abundance affect growth. Their results show that resource exports are no longer significant while the value of...

Joseph A. Schumpeter is one of the most famous economists of the 20th century and the ’patron saint’ of the finance and growth literature. We have discovered that the prevailing literature has, however, misinterpreted Schumpeter, which leads to puzzling empirical results and difficulties in...