economic growth

“What goes down, must come up,” says Olin Business School’s Sam Chun. He will share tips on how businesses can prepare for economic recovery at the next “Thought Leadership Series” discussion in Kansas City, Mo.

Hong KongIn the days leading up to China’s taking over Hong Kong on July 1, 1997, the media and political pundits were spouting cautionary tales of how China would ruin Hong Kong’s success as Southeast Asia’s financial center. Were the foretellers of doom correct in their outlook? Not at all, says David Meyer, visiting professor of business at Washington University in St. Louis. In fact, ten years later, both Hong Kong and China have reaped the benefits.

Venezuelan President Hugo Chavez and Cuban leader Fidel Castro in 2004Venezuelan President Hugo Chavez’s recently announced plan to nationalize the telecommunications and electricity industries in his country sent shockwaves through the boardrooms of multinational corporations with large holdings in Latin America. While some see Chavez as the leading edge of a “socialist revolution,” research from Washington University in St. Louis suggests this latest nationalization push is nothing more than politics as usual, part of a predictable pattern of political tensions that often arise when corporations make large foreign investments.

MacDonaldShaken by numerous accounting-related scandals in recent years, some investors are clamoring for better legal protection for their investments. But does investor protection through government regulation foster economic growth? To assess the widely-held view that it does, WUSTL economics professor Glenn MacDonald and two colleagues have completed a study concluding that the positive effect of investor protection on economic growth is stronger for countries with fewer restrictions on international capital flows.

The International Monetary Fund (IMF) bills itself as an organization of 184 countries working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty. While the IMF’s objectives are laudable, a study just published in the Journal of Conflict Resolution provides compelling evidence that IMF intervention actually has a substantial negative impact on at least one important indicator of a country’s long-term economic vigor – the level of foreign direct investment in that country by private investors.