Evidence supporting the positive effects of capital account liberalization on growth is mixed at best. Even after conditioning on the quality of domestic financial institutions, a significant number of studies still find no effect. One possible explanation is reverse causation. If low growth countries liberalize in order to spur growth, the observed correlation between growth and liberalization...

We document a negative relationship between average growth and average volatility in a cross-section of countries. We then provide an interpretation of this result using a robustness (RB) version of the Obstfeld (1994) model of financial diversification and openness. Incorporating a preference for robustness can generate the observed negative relationship between growth and volatility of real G...

This paper examines the long run cointegrating relation and short run dynamics among carbon emissions, energy consumption, economic growth, urbanization, financial development and openness to trade in Bangladesh by using autoregressive distributed lag (ARDL) bounds testing approach of cointegration. Empirical results for Bangladesh over the period 1975-2010 suggest an evidence of a long-run rel...

Does capital flow from rich to poor countries? We revisit the Lucas paradox and explore the role of capital account restrictions in shaping capital flows at various stages of economic development. We find that, when accounting for the degree of capital account openness, the prediction of the neoclassical theory is confirmed: less developed countries tend to experience net capital inflows and mo...

In this paper we resolve the long standing Feldstein-Horioka (FH, 1980) puzzle dynamically and explain it statistically. We first study the dynamic properties of capital mobility, and re-estimate the evolution of the FH coefficient using a time-varying-parameter model for each of 67 countries from 1970 to 2009. We find that the trend of the FH coefficient is highly consistent with increased glo...

We study whether financial openness facilitates the economic integration of formerly centrally planned economies with the EU-15. Two dimensions of economic integration are considered: cross-country convergence of per-capita incomes and bilateral trade in goods and services. We find that more financially open economies effectively catch-up faster and trade more with the EU-15. These integration-...

Recent studies have challenged the view that trade openness leads to more specialization in countries’ trade. Using a panel of 116 countries over 35 years, we show that openness can be positively associated with both specialization and diversification, depending on the measure used. Moreover, for developing countries in our sample, the effect of openness on trade structure depends on the type o...

Every modern company should measure the value of its intellectual capital and to report to complement the traditional annual balance sheets. The purpose of this work is to measure the intellectual capital in an Algerian company (or production system) using the Weightless Wealth Tool Kit (WWTK). The results of the measurement of intellectual capital are supplemented by traditional financial rati...