This presentation discusses the effects of the Free Trade Area of the Americas (FTAA) on foreign direct investment (FDI). In particular, the inflow of FDI from the United States and Canada towards Latin American countries is discussed along with an analysis of the role of regional integration...

In this paper, the authors discuss in detail a number of channels through which RIA could affect the location of FDI. In addition to clarifying the main effects at play, this conceptual discussion should help lay down a roadmap for the empirical exercises that follow. First, a brief stylized...

Baumol (1967) showed that the rate of growth of an economy slows down if a sector has lower productivity than others and the demand between goods is inelastic. This paper points out that trade is equivalent to technological progress in the tradable sector. Therefore an open economy has higher...

This paper presents a test to discriminate among behaviors of producers of exhaustible resources. The behavior of a competitive producer of an exhaustible resource should follow an Euler equation. The existence of futures markets allows us to sidestep the difficult issues related to estimating...

This paper considers the adjustment of physical capital within a country in the long run and in the short run. It uses a unique data set on income, labor, human capital, and private and public physical capital in the Spanish regions over the past two decades. In the long run, the movement of...

Uncertainty over economic policy plays a key role in economic outcomes. But evidence and quantification for emerging markets are elusive because of measurement and reverse causality issues. In this paper, we construct a news-based economic policy uncertainty (EPU) index for Turkey and assess how...

This paper provides the first experimental evaluation of the participatory budgeting model showing that it increased public participation in the process of public decision making, increased local tax revenues collection, channeled larger fractions of public budgets to services stated as top...