Development

Why developing host countries sign increasingly strict investment agreements

Eric Neumayer, Peter Nunnenkamp, Martin Roy, 1 August 2014

Hoping to attract more FDI, developing countries are increasingly entering stricter investment agreements. But there is no conclusive evidence that such agreements serve them well. This column argues that contagion may help explain this trend. Competition between developing countries for FDI from developed ones could drive the diffusion of international investment agreements.

Long-term damage of the US court’s Argentinian debt ruling

Jeffrey Frankel, 22 July 2014

The US court ruling forcing Argentina to pay its hold-out creditors has big implications. This column argues that some of them are particularly worrying. The court ruling undermines the possibility of negotiated re-structuring of unsustainable debt burdens in future crises. In the future, it will not be not enough for the debtor and 92% of creditors to reach an agreement, if holdouts and a New York judge can block it. This will make both debtors and creditors worse-off.

New price adjustments reshape the world, yet again

Angus Deaton, Bettina Aten, 16 July 2014

When the international comparison project published its latest estimates of purchasing power parity exchange rates in April there was some consternation. Poor countries became richer overnight, world GDP increased, and global income inequality was revised downwards. Alas, no one stopped being poor. This column digs into the numbers to see if we’ve been consistently underestimating the relative size of poorer economies and overestimating global poverty and inequality.

Knowledge elites, enlightenment, and industrialisation

Nico Voigtländer, Mara Squicciarini, 13 July 2014

Although studies of contemporary economies find robust associations between human capital and growth, past research has found no link between worker skills and the onset of industrialisation. This column resolves the puzzle by focusing on the upper tail of the skill distribution, which is strongly associated with industrial development in 18th-century France.

External integration and development: Evidence from Argentina

Pablo Fajgelbaum, Stephen Redding, 12 July 2014

External integration is often viewed as an important driver of economic development, but most existing studies use aggregate data. This column present evidence from a natural experiment provided by Argentina’s integration into the world markets in the late 19th century. The findings suggest that proximity to trade centres is associated with employment density, high lands rates relative to wages, and structural transformation away from agriculture.

Other Recent Articles:

Vox eBooks