Should industrial policy be targeted to a few sectors or be more broad based and therefore more neutral? Our theoretical analysis demonstrates that access to foreign markets is key to answering this question. We show that in a less open economy, industrial policy should be targeted, while in a...

This paper examines the main determinants of linkages between foreign and domestic firms in developing countries. Based on existing evidence, we highlight the relevance of linkages generated by MNEs in developing countries and then we discuss the factors which boost or hamper the interactions...

Is international migration an adaptation strategy to sudden or gradual climatic shocks? In this paper we investigate the direct and the indirect role of climatic shocks in developing countries as a determinant of out-migration flows toward rich OECD countries in the period 1990-2001. Contrarily...

This unique and fascinating book illustrates that the ‘credit crunch’ and the ensuing financial and economic crisis of 2007–2009 did not only strike hard at the economy in the Western world, but also at its policymakers, at economics as a scientific discipline and, more...

In this paper we show that highly skilled undocumented migrants are more likely to return home than migrants with low or no skills when illegality causes “skill waste”, i.e. when illegality reduces the rate of return of individual capabilities (i.e. skills and human capital) in both the...

This paper aims to analyse the effect of deepening regional integration on the incentive for factors of production, in particular labour, to spatially relocate. We adopt a general equilibrium, economic-geography model built on Krugman (1991) allowing for skill heterogeneity in the manufacturing...

In this paper we show that highly skilled illegal migrants may be more likely to return home than migrants with low or no skills when illegality causes skill waste, i.e. reduced ability of making use of individual capabilities both in the labor and the financial markets. This result is in...

The importance of human capital as a key source of value added, innovation and economic growth is widely acknowledged by both economists and policy-makers. Local governments can directly affect individuals’ decision making by subsidising human capital formation. The ability of a regional...

In this paper we show that highly skilled clandestine migrants are more likely to return home than migrants with low or no skills when illegality causes "skill waste", i.e. when illegality reduces the rate of return of individual capabilities (i.e. skills and human capital) in the country of...

The present paper analyzes how policy intervention should be designed so as to create industrialization. We focus on whether intervention should be targeted, promoting investment in specific firms or industries, or broad based, increasing the profitability of investment in general. Our main...