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This paper reviews the implications for industrial strategy of recent research on technological capabilities at the firm and national levels. After exploring the nature and determinants of microlevel technological development, a simple framework for explaining the growth of national capabilities is set out, based on the interplay of incentives, capabilities(More)
New evidence is presented on environmental innovation and diffusion over the 1970s and 1980s. At a global level, a substantial amount of innovations occurred. In the United States, Japan, and Germany, the share of environmental patents in all patents varied between 0.6 and 3%, and as such was higher than the corresponding share of pollution abatement(More)
What accounts for the worldwide advance of financial reforms in the last quarter century? Using a new index of financial liberalization, we find that influential events shook the policy status quo. Balance of payments crises spurred reforms, but banking crises set liberalization back; falling global interest rates strengthened reformers, while new(More)
Increasing foreign bank participation and high, and often rising, concentration levels characterize the recent evolution of banking market structures in many developing countries. We analyze the impact of these factors on bank spreads using bank level data for Argentina, Chile, Colombia, Mexico, and Peru during the late 1990s. Our results suggest that(More)
This paper develops comparative indices of environmental policy and performance for 31 countries, using a quantiŽ ed analysis of reports prepared for the United Nations Conference on Environment and Development (UNCED). In cross-country regressions, we Ž nd a very strong, positive association between our indicators and the level of economic development,(More)
Recent empirical analyses show that asset flows can be modeled by the same “gravity” equations that trade economists have used so successfully for the past few decades. This is something of a surprise. Trade economists do not yet have a unified theory of why gravity models should work—and the situation is worse for asset flows. Reasonable theories would(More)
This paper updates earlier findings concerning the impact of collective-action clauses on borrowing costs. It has been argued that only in recent quarters have investors focused on the presence of these provisions, and that, given the international financial institutions’ newfound resolve to “bail in” investors, they now regard these clauses with(More)
While substantial research finds that financial development boosts overall economic growth, we study whether financial development disproportionately raises the incomes of the poor and alleviates poverty. Using a broad cross-country sample, we distinguish among competing theoretical predictions about the impact of financial development on changes in income(More)
How did the Subprime Crisis, a problem in a small corner of U.S. financial markets, affect the entire global banking system? To shed light on this question we use principal components analysis to identify common factors in the movement of banks’ credit default swap spreads. We find that fortunes of international banks rise and fall together even innormal(More)