Essays on growth, development, and international trade

This dissertation analyzes some determinants of, and obstacles to, growth and development in the less-developed countries (LDC). In particular, we consider situations where an LDC may be caught in a low-growth 'poverty trap' and discuss some mechanisms by which it may escape from this trap, focusing on the potential for welfare-enhancing policy intervention. We first examine development problems in a closed economy, and then turn to open-economy issues. Specifically, the first essay, 'Economic Growth, Endogenous Reductions in Mortality, and the Demographic Transition' explores the links between economic growth, mortality, and fertility. The second essay, 'Economic Development with Economies of Agglomeration: Foreign Direct Investment versus Import Substitution' studies the role of trade and foreign direct investment in industrial development. The third essay, 'Macroeconomic and Sectoral Effects of Terms-of-Trade Shocks: The Experience of the Oil-Exporting LDC,' analyzes the impact of changes in the external environment on investment and growth.