This paper analyzes how interaction effects can be consistently estimated under economically plausible assumptions in linear panel models with a fixed Tdimension. We advocate for a correlated interaction term estimator (CITE) and show that it is consistent under conditions that are not...

This paper documents that cross-border investment income flows are important for explaining current account balances in major economies. Those investment incomes reflect returns on cross-border asset holdings and on balance often reach magnitudes around 5% of major economies' gross domestic...

This paper shows how growth regressions can be useful for analyzing a country's growth performance. Growth regressions describe changes in key macroeconomic variables that countries typically experience during their growth process. Such partial correlations facilitate comparative analysis, can...

This paper assesses Vietnam's recent experience with reforming its state-owned enterprise (SOE) sector and discusses potential ways forward. It does so by: reviewing the economic principles that account for the motivations and shortcomings of state ownership; taking stock of stylized facts about...

This paper first shows that important economic arguments in favor of the Prebisch-Singer hypothesis of falling terms of trade of developing countries have implicitly relied on the role of multinational corporations and foreign direct investment. As of yet, the relationship between the latter and...