Economic Growth (MIT Press)

The discussion quickly turns to the regression framework to be used throughout the rest of the book, which is based on the neoclassical framework. In Chapter 1, the regression framework is applied to a panel of data covering roughly a hundred countries over the years in an effort to determine what factors are important in explaining long-run growth.

The findings highlighted in this chapter are that the growth rate of real per capita GDP is enhanced by better maintenance of the rule of law, smaller government consumption, longer life expectancy, more male secondary and higher levels of schooling, lower fertility rates, and improvements in the terms of trade. The data also support the notion of conditional convergence; that is, for given values of these variables, countries with a lower initial level of real per capita GDP grow faster.

The analysis also looks at democracy and inflation as potential factors determining growth rates, but their roles are the topics of Chapters 2 and 3. Finally, Chapter 1 concludes with projections of growth rates through the end of the century based on the empirical framework developed earlier in the chapter.

Chapter 2 looks at the role of political freedom in determining growth rates; that is, whether or not a more democratic form of government promotes long-run growth. With this, the analysis turns to developing a framework for determining the level of democracy over time and across countries. While this has largely been a topic of interest to political scientists, the main finding is that levels of democracy are a function of economic factors. The chapter closes with long-run forecasts of the level of democracy across countries based on the empirical model developed in the chapter.

The third chapter considers the effects of inflation on long-run economic performance. Barro devotes a large part of this chapter to dealing with endogeneity issues; that is, ensuring that causation is running from inflation to growth and not in the other direction.

Navigation menu

Economic growth Pearson, Addison Wesley. Surveys in economic growth: This volume collects articles from a special issue of the Journal of Economic Surveys. The mystery of economic growth. Knowledge, Technological Catch-up and Economic Growth. Easterly, William and Levine, Ross It's not factor accumulation: World Bank Economic Review , 15 2 , World Development , 29 1.

Advanced macroeconomics , 2nd edition, chapters Policy influences on economic growth in OECD countries: World Bank Research Observer , February, 15 1. Oxford University Press, Oxford. This book brings together his Radcliffe lectures on exogenous growth theory, his Nobel Prize lecture, and his Siena Lectures on endogenous growth theory. The new empirics of economic growth.

In Handbook of macroeconomics. Amsterdam, New York and Oxford: Elsevier Science, North-Holland, Principles of Economic Growth.

Explaining cross-country income differences. The new growth evidence. Journal of Economic Literature , 37 1 , March, Labor markets and economic growth. In Handbook of labor economics. Amsterdam; New York and Oxford: CEP discussion paper no. Political variables in cross-country growth analysis. Journal of Economic Surveys , 11 2 , The empirics of economic growth and convergence: Journal of Economic Dynamics and Control , 21, An introduction to economic growth.

Oliver Falck, Christian Gollier, and Ludger Woessmann

But if the society is bereft of knowledge, individuals face little incentive to invest, or if they do, will likely leave the economy in a brain drain. According to Easterly, governments can help overcome poverty traps by subsidizing investment in new knowledge, reducing taxes on capital goods and technology, and actively seeking private investment. According to Easterly, "the prime suspect for mucking up incentives is government.

However, good government can promote broad and deep growth when it holds itself accountable and "energetically takes up the task of investing in collective goods like health, education, and the rule of law. The Economist called it a "refreshing, iconoclastic book" which would leave its readers "chastened, instructed and entertained. In the years following publication of Elusive Quest for Growth , Easterly became embroiled in a public debate with rival development economist Jeffrey Sachs over the role of foreign aid.

From Wikipedia, the free encyclopedia. Journal of Economic Literature. Retrieved March 5, Retrieved from " https: Articles with short description Pages to import images to Wikidata. Views Read Edit View history.