Convergence

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The first essay, entitled “Sectoral Adjustment Costs and Real Exchange Rate Dynamics in a Two-Sector Dependent Economy,” investigates dynamics of real exchange rates in a two-sector model with both capital accumulation and capital reallocation. Instead of choosing one of the ext…

Much of the theoretical literature on corruption and economic growth suggests that corruption harms growth, yet the empirical literature is ambiguous. One highly cited paper, Mauro (1995), estimates that corruption has a moderately harmful effect on growth, yet once more recentl…