Both Institutions and Policies Matter but Differently for Different Income Groups of Countries: Determinants of Long-Run Economic Growth Revisited

Keun Lee () and Byung-Yeon Kim

World Development, 2009, vol. 37, issue 3, 533-549

Abstract: Summary This paper revisits the recent debate on the determinants of long-run economic growth with the simple idea that different factors matter at different country groups classified by income levels. This paper improves on the methodology by conducting not only cross-section estimations but also fixed-effects panel and system-GMM estimations. The results suggest that new policy variables such as technology and tertiary education, as well as institutions, matter as the determinants of long-run economic growth. In addition, this paper finds that while secondary education and institution turn out to be important for lower-income countries, an emphasis on technology and higher education appears to be effective in generating growth for the upper middle- and high-income countries but not for the lower middle and low-income countries.

Keywords: economic; growth; institution; technology; policies; income; levels; education (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (166)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:wdevel:v:37:y:2009:i:3:p:533-549

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