This paper proposes a simple theory of international trade with endogenous productivity differences across countries. The core of our analysis lies in the determinants of the division of labor. We consider a world economy comprising two large countries, with a continuum of goods and one factor...

The Chinese state undertakes large scale investments in a number of countries under the auspices of economic cooperation related investment (ECI). While there are suggestions that it is an extension of China‟s soft power aimed at facilitating Chinese FDI in those countries, often for access to...

This paper aims to investigate the relationship between economic growth, institutional quality and financial development whitin a sample of middle-income countries. We generate three hypothesis on the potential relationships between those three dimensions by reviewing the existing literature and...

The relationship between economic freedom and economic growth has always been frequently discussed in the economic literature. Economic freedom is often believed to enhance economic growth, which in turn creates more economic freedom. The first part of this paper studies the transition process...

This paper examines whether a country’s economic reforms are affected by reforms adopted by other countries. A simple model of economic reforms is developed to motivate the econometric work. Unsurprisingly, the model predicts that reforms are more likely when factors of production are...

While the last half century gave rise to over a dozen developing nations whose economic expansion surpassed the growth rates of many industrialized economies, the same fifty years witnessed a majority of aid-dependent Sub-Saharan Africa suffer from economic stagnation and in some cases even...

"This paper has provided a model framework of foreign assistance policy in the context of dynamic optimal control and investigated the environmental policies in LDCs that received some financial support from abroad. The model framework features a specific behavior of the social planner who...