All that glitters is not gold: a ranking of global rankings

Ela Díaz and Rodrigo Valdés

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: This paper examines the predictive power of different global rankings on country growth. An influential framework to shape policy decisions is to look at a specific global ranking and implement policies to reduce gaps with respect to best practices or the frontier. Using panel data regressions, we show that different rankings predict growth with quite dissimilar levels of success. Rankings with a focus on government effectiveness or, to a lesser extent, on globalization offer statistically significant and economically relevant guidance when we consider three-yearahead growth. Others, usually presented as focused on competitiveness assessments, show zero correlation with future growth. When there are effects, they appear in trend, rather than cyclical, GDP and in foreign direct investment. Total factor productivity growth and exports do not change appreciably. We do not detect nonlinear effects.

Keywords: growth; global rankings; competitiveness; structural reforms (search for similar items in EconPapers)
JEL-codes: E00 O47 O50 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2020-04-01
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Published in Economía, 1, April, 2020, 20(2), pp. 223 - 254. ISSN: 1529-7470

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http://eprints.lse.ac.uk/123246/ Open access version. (application/pdf)

Related works:
Journal Article: All That Glitters Is Not Gold: A Ranking of Global Rankings (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:123246

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