Growth miracles and failures in a Markov switching classification model of growth

• 成果类型: Article
• 署名作者: Kerekes, Monika
• 署名单位: Free University of Berlin
• 刊物名称: JOURNAL OF DEVELOPMENT ECONOMICS
• ISSN/ISSBN: 0304-3878
• DOI: 10.1016/j.jdeveco.2011.06.012
• 发表日期: 2012
• 页码: 167-177
• 关键词: economic growth; regime switching; Latent class models

摘要

In this paper economic growth is interpreted as a sequence of transitions between distinct growth regimes that countries visit with different frequencies. Countries featuring similar growth dynamics are endogenously grouped into three different clusters. The first cluster comprises successful countries that are characterized by lengthy periods of high or very high growth. Moderately successful countries in the second cluster experience both periods of reasonable growth and periods of stagnation, whereas failing countries in the third cluster suffer from highly volatile growth rates with frequent episodes of crisis. Successful countries are characterized by better initial conditions, policies and institutions compared to the other countries. Neither initial conditions nor institutions distinguish moderately successful from failing countries: what makes them different is policy in the form of investments into infrastructure and human capital, trade liberalization and limited policy volatility. (C) 2011 Elsevier B.V. All rights reserved.