M. Ayhan Kose, Franziska Ohnsorge, Lei (Sandy) Ye, 24 April 2017

Investment growth in emerging market and developing economies has slowed sharply since 2010. This column argues that this slowdown reflects a range of factors, including negative terms-of-trade shocks, slowing FDI inflows, weak activity, and rising private debt burdens and political risk. Policymakers can boost investment directly through public investment, and indirectly by taking measures to improve overall growth prospects and the business climate.

Tessa Bold, Tobias Broer, 16 February 2017

The substantial literature examining risk-sharing practices in rural villages in developing countries has typically taken the social institutions in these communities as given. Using data from India, this column challenges this assumption by showing how the costs and benefits of risk-sharing arrangements can shape these social institutions. The results suggest that the size and nature of these risk-sharing groups may evolve over time as their environment changes. Public policy to reduce consumption fluctuations can be counterproductive in the standard model because of a strong crowding-out effect.

Viral Acharya, Stephen Cecchetti, José De Gregorio, Sebnem Kalemli-Ozcan, Philip Lane, Ugo Panizza, 05 October 2015

Emerging market firms have borrowed in foreign currency to take advantage of low interest rates. This column argues that when the Fed inevitably raises rates, such borrowing will be a threat to emerging economy financial systems. Yet so long as authorities use their existing prudential tools wisely, the risks appear manageable.

Demián Dalle, Verónica Fossati, Federico Lavopa, 13 April 2014

Discussions of global value chains (GVCs) have permeated international organisations’ research and policy agendas. This column presents a critical view on some of the recent policy recommendations that urge for as much liberalisation of trade in goods and services as possible. These proposals cannot be automatically applied to developing countries without some type of government intervention.

Maximiliano Sosa Andrés, Christiane Krieger-Boden, Peter Nunnenkamp, 08 March 2012

Investors from emerging and developing economies are becoming bigger players in FDI, particularly in developing countries. While some raise concerns that emerging economies might gain control over raw materials, others are hopeful that non-traditional investors might provide new opportunities for development. This column analyses these new FDI flows and finds that while fears may be exaggerated so too is the optimism.

Francisco Rodríguez, 23 February 2009

The development theme in the Global Crisis Debate has elicited many important and novel contributions on what the crisis means for the developing world and how developing nations should react. This column provides a synthesis and commentary of the key proposals.

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