In 1980 Feldstein and Horioka (F-H) found high saving-investment cross-section correlation among OECD countries and interpreted this result as evidence of low capital mobility. Such a inconsistency between the conventional wisdom about capital mobility in the last decades and its empirical...

The aim of this paper is to explore the role of institutional determinants of international comparative advantage. Starting from a theoretically well founded general equilibrium framework, where specialization depends on relative factor endowments and technological differences, we study the...