Across the world, researchers and business analysts are closely watching the People’s Republic of China (PRC), especially its recent economic slowdown. The Asia and Pacific region is extremely anxious about the PRC’s slowdown, but the rest of the world has a definite reason to worry about...

What do we know about the output effects of fiscal policy in low income countries (LICs)? There are very few empirical studies on the subject. This paper fills this gap by estimating the output effects of government spending shocks in LICs. Our analysis-based on the local projection method-finds...

In 2007, Hausmann, Hwang and Rodrik (HHR) demonstrated that export specialization patterns have important implications for economic growth. The authors developed an indicator of income level linked to the country’s exports they called EXPY and showed that higher values of the indicator lead to...