Why Guyana's self discovery is the missing link in its development strategy

Collin Constantine ()

MPRA Paper from University Library of Munich, Germany

Abstract: The paper attempts to indentify the constraints to growth in Guyana using the Hausmann et al (2005) methodology. Although Guyana suffers from low domestic savings and high interest rate spreads, the paper argues that high cost of finance is a non-binding constraint on entrepreneurial activity. The paper concludes that market failures such as information externalities is a binding constraint on growth in Guyana. It explains the country’s static economic structure and why the composition of its export basket has not changed in 46 years. The paper recommends non-competitive policies to stimulate structural transformation and to internalise the information externalities.

Keywords: Economic Growth; Growth Diagnostics; Information Externalities; Imperfect Competition (search for similar items in EconPapers)
JEL-codes: O11 O12 O40 (search for similar items in EconPapers)
Date: 2013-01
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:44205

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