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Export-promotion policies as a superior development strategy for semi-industrialized countries (SICs) have found support in the statistically significant correlations established between export expansion and output growth. This positive export-GDP association is often attributed to the possible externalities of competition in world markets -e.g., efficiency of resource allocation, economies of scale, and various "demonstration" effects.In this paper, we show that the correlation mainly has been due to the contribution of exports to the reduction of import "shortages," which restrict the growth of output in many SICs.Ln this sense, export promotion is particularly important for countries that cannot obtain sufficient foreign aid or capital.\ second contribution of this paper is the development of a simultaneous equations model to deal with the simultaneity problem between GDP and export growth rates.

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Abstract-This paper theoretically and empirically examines ownership structure in foreign direct investment (FDI) projects. We show that in choosing an ownership structure, foreign investors, local entrepreneurs, and government consider the specific, costly-to-market assets that the participants and the country bring to the project. In equilibrium, the foreign equity share rises with the importance of foreign investor assets and declines with the contribution of local assets towards the amount of surplus generated in the project. Government policies and the institutional structure of the country also affect ownership structure.

SUMMARY This paper develops a long‐run output relation for a major oil‐exporting economy where the oil income‐to‐output ratio remains sufficiently high over a prolonged period. It extends the stochastic growth model developed in Binder and Pesaran (1999) by including oil exports as an additional factor in the capital accumulation process. The paper distinguishes between the two cases where the growth of oil income, go, is less than the natural growth rate (the sum of the population growth, n, and the growth of technical progress, g), and when go ≥ g + n. Under the former, the effects of oil income on the economy's steady growth rate will vanish eventually, while under the latter oil income enters the long‐run output equation with a coefficient which is equal to the share of capital if it is further assumed that the underlying production technology can be represented by a Cobb–Douglas production function. The long‐run theory is tested using quarterly data on nine major oil economies. Overall, the test results support the long‐run theory, with the existence of long‐run relations between real output, foreign output and real oil income established for six of the nine economies considered. Copyright © 2012 John Wiley & Sons, Ltd.