Research was supported by the Harvard Institute for International Development and by the IRIS Center, University of Maryland, College Park. An eariler draft of this paper was presented at the Harvard-MIT Political Economy Seminar in May 1992. We appreciate the helpful discussions with A. Banerji, P. Collier, A. Alesina, T. Panayotou, D. Rodrik, P. Srivastava, T. Verdier, and J. Widner. All errors are omissions and the authors'.
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