The MIT Faculty has made this article openly available. Please share how this access benefits you. Your story matters. Introduction One of the striking characteristics of the crisis is how quickly and how broadly it spread from the United States to the rest of the world. When the financial crisis intensified first in the United States, and then in Europe,… (More)
India has followed an idiosyncratic pattern of development, certainly compared with other fast-growing Asian economies. While the importance of services rather than manufacturing has been widely noted, within manufacturing India has emphasized skill-intensive rather than labor-intensive manufacturing, and industries with higher-than-average scale (though… (More)
The Czech Republic's mass-privatization scheme changed the governance of many firms in a short period of time. We show that it was effective in improving firms' management because of the concentrated ownership structure which resulted. For a cross-section of 706 firms over the 1992-95 period, we find that the more concentrated ownership is, the higher the… (More)
The First Era of Globalization, 1870-1913, was marked by a degree of integration in goods and financial markets comparable to that which prevails today. It also exhibited a large number of financial crises that unfolded in ways very similar to those experienced since the 1970s. In light of skepticism about whether market-based finance is good for… (More)
This paper studies the empirical, crosscountry , relationship between macroeconomic volatility and long-run economic growth. It addresses four central questions. The first is whether the volatility-growth link depends on country and policy characteristics, such as the level of development or trade openness. The second one is whether this link reflects a… (More)
This overview introduces and summarizes the findings of a practical volume on managing volatility and crises. The interest in these topics stems from the growing recognition that non-linearities tend to magnify the impact of economic volatility, leading to large output and economic growth costs, especially in poor countries. In these circumstances, good… (More)
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This paper studies the properties of self-financing ratios-the share of domestic capital that was financed by domestic savings, without relying on external borrowing. On average, 90% of the stock of capital in developing countries is self financed, and this fraction was stable throughout the 1990s. Greater integration of financial markets throughout the… (More)
Default episodes in the 1980s and 1990s: What have we learned?