The authors examine the role of governance-measured by level of corruption and quality of bureaucracy-and ask how it affects the relationship between public spending and outcomes. Their main innovation is to see if differences in efficacy of public spending can be explained by quality of...

It has been argued that if several developing countries expand exports, they are likely to experience a decline in their terms of trade, export revenues, and real incomes. The general case for this export pessimism has lost much of its force, but remains very much alive for some specific...