Journal ArticleDOI
Africa's Growth Tragedy: Policies and Ethnic Divisions
William Easterly,Ross Levine +1 more
TLDR
This article showed that ethnic diversity helps explain cross-country differences in public policies and other economic indicators in Sub-Saharan Africa, and that high ethnic fragmentation explains a significant part of most of these characteristics.Abstract:
Explaining cross-country differences in growth rates requires not only an understanding of the link between growth and public policies, but also an understanding of why countries choose different public policies. This paper shows that ethnic diversity helps explain cross-country differences in public policies and other economic indicators. In the case of Sub-Saharan Africa, economic growth is associated with low schooling, political instability, underdeveloped financial systems, distorted foreign exchange markets, high government deficits, and insufficient infrastructure. Africa's high ethnic fragmentation explains a significant part of most of these characteristics.read more
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Brain Drain and LDCs' Growth: Winners and Losers
TL;DR: In this paper, the authors present an empirical evaluation of the growth effects of the brain drain for the source countries of migrants and find that most countries combining low levels of human capital and low migration rates of skilled workers tend to be positively affected by the brain-drone phenomenon.
Journal ArticleDOI
Patriotism in your portfolio
Adair Morse,Sophie Shive +1 more
TL;DR: In a panel of World Values Surveys covering 53 countries, measures of patriotism are positively related to home bias measures after controlling for transaction barriers, diversification benefits, information, and familiarity as discussed by the authors.
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Nature, Power, and Growth
TL;DR: In this article, the authors reviewed the relationship between natural-resource abundance and economic growth around the world, and presented some new results, such as that the share of the primary sector in the labour force in the labor force is inversely related to exports, domestic and foreign investment, and education, and directly related to external debt, import protection, corruption and income inequality.
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The European Origins of Economic Development
William Easterly,Ross Levine +1 more
TL;DR: This paper found a strong and uniformly positive relationship between colonial European settlement and economic development, and no evidence that the positive relationship diminishes or becomes negative at very low levels of colonisation, contradicting a large literature focusing on the enduring adverse effects of small European settlements creating extractive institutions.
Journal ArticleDOI
Egalitarianism and international investment
TL;DR: The authors found a robust influence of egalitarianism on cross-national flows of bond and equity issuances, syndicated loans, and mergers and acquisitions, likely through its direct influence on managers' daily business conduct.
References
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The mechanics of economic development
Abstract: This paper considers the prospects for constructing a neoclassical theory of growth and international trade that is consistent with some of the main features of economic development. Three models are considered and compared to evidence: a model emphasizing physical capital accumulation and technological change, a model emphasizing human capital accumulation through schooling, and a model emphasizing specialized human capital accumulation through learning-by-doing.
Journal ArticleDOI
On the mechanics of economic development
TL;DR: In this article, the authors consider the prospects for constructing a neoclassical theory of growth and international trade that is consistent with some of the main features of economic development, and compare three models and compared to evidence.
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Law and Finance
Rafael La Porta,Rafael La Porta,Florencio Lopez de Silanes,Florencio Lopez de Silanes,Andrei Shleifer,Andrei Shleifer,Robert W. Vishny,Robert W. Vishny +7 more
TL;DR: This paper examined legal rules covering protection of corporate shareholders and creditors, the origin of these rules, and the quality of their enforcement in 49 countries and found that common law countries generally have the best, and French civil law countries the worst, legal protections of investors.
ReportDOI
Economic Growth in a Cross Section of Countries
TL;DR: For 98 countries in the period 1960-1985, the growth rate of real per capita GDP is positively related to initial human capital (proxied by 1960 school-enrollment rates) and negatively related to the initial (1960) level as mentioned in this paper.
Journal ArticleDOI
Finance and Growth: Schumpeter Might Be Right
TL;DR: In this paper, the authors examined a cross-section of about 80 countries for the period 1960-89 and found that various measures of financial development are strongly associated with both current and later rates of economic growth.