 Accelerating Economic Growth: The Science beneath the ArtMichele Peruzzi and Alessio Terzi Economic Modelling, 2021, vol. 103, issue C Abstract: Rapid and sustained accelerations in economic growth can have huge implications for poverty alleviation and people's wellbeing, but does the economic profession have the knowledge to engineer them? Conspicuously disappointing outcomes for countries scrupulously following mainstream growth policy recipes have sown some doubt. This paper deploys a novel statistical approach to show that 80% of 135 successful growth acceleration episodes – occurring between 1962 and 2002 worldwide – were preceded by major improvements in standard growth determinants, and particularly orthodox policies such as economic liberalisations. However, a set of counterfactual analyses suggest that such major improvements in growth determinants are a necessary but hardly sufficient condition for success, failing to accelerate growth in 9 out of 10 instances. Our overall results indicate that to increase their effectiveness, acceleration strategies should remain focussed on mainstream growth recipes, but abandon off-the-shelf approaches or all-encompassing “shock therapy” solutions, favouring improved tailoring to local economic conditions. Keywords: Growth accelerations; Economic growth; Washington consensus; Policy reform; Structural breaks (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:103:y:2021:i:c:s0264999321001826 DOI: 10.1016/j.econmod.2021.105593 Access Statistics for this article Economic Modelling is currently edited by S. Hall and P. Pauly More articles in Economic Modelling from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.