Real price levels are systematically lower in developing countries than in developed countries. This paper provides time series evidence about the effect of financial development on real price level differences for 40 developing countries. Based on cointegration tests, we find a long-run...

Recent studies on the welfare implications of internationally mobile capital for a country employing commercial policy have been restricted to constant‐returns‐to‐scale (CRS) production models. It is generally concluded that the pursuit of such policies is welfare‐decreasing under CRS...

Recent studies on the welfare implications of internationally mobile capital for a country employing commercial policy have been restricted to constant-returns-to-scale (CRS) production models. It is generally concluded that the pursuit of such policies is welfare-decreasing under CRS...