We explore the consequences of international trade in an economy that encompasses technology choice and an endogenous distribution of mark-ups due to credit market frictions. We show that in such an environment a gradual opening of trade may —but not necessarily must —have a negative impact on productivity and overall output. The reason is that the pro-competitive effects of trade reduce mark-u...

Entrepreneurship Programs in Developing Countries: A Meta Regression Analysis This paper provides a synthetic and systematic review on the effectiveness of various entrepreneurship programs in developing countries. We adopt a meta-regression analysis using 37 impact evaluation studies that were in the public domain by March 2012, and draw out several lessons on the design of the programs. We ob...

The study analyzes the impact of foreign direct investment (FDI) and domestic investment (DI) on economic growth in Sub-Saharan Africa for the period 1990–2003. The results show that DI is positive and significantly correlated with economic growth in both the OLS and fixed effects estimation, but FDI is positive and significant only in the OLS estimation. The study also found that FDI has an in...

Article history: Received 11 September 2012 Received in revised form 16 October 2013 Accepted 9 January 2014 Available online 17 January 2014 While the existing literature acknowledges the effect of banking structure on industrial growth as well as the effect of financial development on industrial growth and its volatility, we examine whether banking structure, given financial development, exer...

Here we perform the same kind of “integration experiments” as in Rivera-Batiz and Romer (1991), this time in the context of a “quality ladder model”, where international trade integration is not enough to prevent redundancy of R&D efforts. Thus a further kind of integration is analysed: “financial market integration”. We adopt as a setup the Simple Schumpeterian Model in Aghion and Howitt (2005...

Abstraci-Chemi& and mechanical site preparation methods were studied for establishing loblolly (%WS tee& L) rind S&h (p. 8l&O16? Mf. 8&O&! fingelm.) pi118 f~hding both i&gmted fUehVOOdpulpwood harvesting and conventiil who&tree harvesting of pines and hardwoods In southem Alabama’s Middle Coastal Plain. Revegetation was assessed in year 1, planted pines were measured afler years 2 and 5, and so...

This paperexplores theconsequences of improvingpropertyrights tofacilitate the use of fixed assets as collateral, popularly attributed to the influential policy advocate Hernando de Soto. We use an equilibrium model of a credit market with moral hazardtocharacterizethetheoretical effects andalsodevelopa quantitative analysis using data from Sri Lanka. We show that the effects are likely to be n...

When expanding abroad, a multinational bank faces a trade-o¤ between accessing a foreign country via cross border lending or a …nancial foreign direct investment, i.e. green…eld or acquisition entry. We analyze the entry mode choice of multinational banks and explicitly derive the entry mode pattern in the banking industry. Moreover, we show that in less developed banking markets, a trend towar...

The corporate finance literature suggests that a financially constrained firm invests less than an identical unconstrained firm. This does not imply that financial frictions cause firms to invest less than in a frictionless economy. When firms compete for investment funds, an increase in financial frictions can lead individual firms to increase their investment levels. A greater than the fricti...

We estimate the effect of social capital on the ability of households to insure consumption after unexpected negative shocks. Many theoretical models argue that strong ties to extended family members and to one’s community help protect families when an adult becomes ill or disabled. Using household-level longitudinal data on Indonesian families, we test whether consumption declines less after a...