How do relative wages (between skilled and unskilled workers) respond to technical progress and to relative supply shifts? An empirical model of the wage premium for Mexican manufacturing is employed on two monthly data samples: one, from 1987 to 1995, displays the well-documented rising trend...

The authors use a panel data fixed effect model to identify the determinants of foreign direct investment (FDI) for a large sample of 29 sub-Saharan African countries from 1980 to 2003. They test whether human capital development, defined by either literacy rates or economic freedom, and the...

Several empirical studies report the existence of declining terms of trade between commodities and manufactures, supporting the Prebisch-Singer hypothesis. As globalisation leads to greater integration of markets, we ask if in a fully integrated economy the terms of trade will display the same...

Examining quarterly real exchange rates (RER) from 1976 to 2006 in panels of Asian and Latin American countries, shows that crisis-battered Asian currencies incur a higher speed of adjustment towards purchasing power parity (PPP). The degree of mean reversion of the three most volatile Asian...

The increase in oil prices in recent years has occurred concurrently with a rapid expansion of Chinese exports in the world markets, despite China being an oil importing country. In this paper we develop a theoretical model that explains the positive correlation between Chinese exports and the...

The wage premium between skilled and unskilled workers in Mexican maquiladoras has moved up, from 4.14 in January 1990 to 4.79 in March 2006. This 16 per cent increase in wage differentials favouring skilled workers is contrasted to a measure of relative labour supplies within a model of...

This paper examines the effects of intra-industry imports on total factor productivity (TFP). Employing a new sample of 25 Mexican manufacturing industries with annual data from 1984 to 2000, interesting panel data results emerge. First, we find the positive impact of intra-industry imports on...