We explore the effects of openness to trade on growth and the implications for income convergence in Africa. Fixed-effect estimation results indicate that the evidence on the direct impact of openness to trade on growth is mixed and there is no support for conditional convergence. On the other...

This paper uses the Granger-causality technique to test Friedman 's hypothesis that variability in monetcuy growth causes changes in velocity. Two models are constructed and tested. The first model uses aggregate money without distinction between the anticipated and unanticipated money growth....

We analyze the interplay of political elites’ de facto power, democracy and education based on a theoretical framework inspired by the model in Acemoglu and Robinson (2006). We identify conditions under which the elite may overcompensate the loss of de jure power (as a result of political...

We present a model of vertical product differentiation and exit where a domestic and a foreign firm face fixed setup costs and quality-dependent costs of production and compete in quality and price in the domestic market. Quality-dependent costs are quadratic in qualities, but independent of the...

We present a model of vertical product differentiation and exit where a domestic and a foreign firm face fixed setup costs and quality-dependent costs of production and compete in quality and price in the domestic market. Quality-dependent costs are quadratic in qualities, but independent of the...

This study investigates the impact of corruption on public and private investment in African countries as a way of exploring one channel through which corruption undermines growth. The empirical results indicate that corruption affects economic growth directly and through its impact on...