This volume examines the impact on economic performance of structural policies-policies that increase the role of market forces and competition in the economy, while maintaining appropriate regulatory frameworks. The results reflect a new dataset covering reforms of domestic product markets,...

Several models on growth and trade conclude that a country grows more when trading with a less developed country. This paper shows that this conclusion depends crucially on the assumptions of homothetic preferences and/or having just two goods with respect to learning-by-doing. The paper...

Five years after the onset of the global financial crisis, Europe’s economy is still fragile. Notwithstanding recent positive signs amid calmer financial markets, medium-term growth is likely to remain frail owing to continuing weaknesses and vulnerabilities at the country level and in the...

Models on the composition of trade and growth often assume that the technological content of trade is negatively correlated with the income of the trading partner. First, this paper shows that this assumption is not supported empirically. Second, it presents a Ricardian model with non-homothetic...

Despite the increasing importance of remittances in total international capital flows, the relationship between remittances and growth has not been adequately studied. This paper studies one of the links between remittances and growth, in particular how local financial sector development...

This paper examines fungibility as a possible explanation for the missing link between foreign aid and economic growth. The composition of aid plays a crucial role in determining the composition of government spending and, consequently, the magnitude of fungibility and its impact on growth....