The Landscape of Economic Growth: Do Middle-Income Countries Differ?

Barry Eichengreen, Donghyun Park, Kwanho Shin

    Research output: Contribution to journalReview articlepeer-review

    4 Citations (Scopus)

    Abstract

    We review the growth experience of middle-income countries. Economic factors associated with growth appear to differ between middle-income and other countries. The efficiency of the financial system is importantly related to the growth rate in low- and middle-income countries, but appears to matter less as one moves up the income scale. Demographic variables also matter importantly in low-income countries. In middle-income countries, in contrast, measures of the financial system no longer appear to matter as importantly, as if inefficiencies in banking and financial systems are no longer as binding a constraint as at earlier stages of financial development; nor are demographic variables as important as before. At this point, other variables gain a growing role: these include whether the country experiences a banking or currency crisis, the extent of non-foreign direct investment capital inflows, and government debt as a share of gross domestic product.

    Original languageEnglish
    Pages (from-to)836-858
    Number of pages23
    JournalEmerging Markets Finance and Trade
    Volume54
    Issue number4
    DOIs
    Publication statusPublished - 2018 Mar 16

    Bibliographical note

    Funding Information:
    This work was supported by the Asian Development Bank.

    Publisher Copyright:
    Copyright © Taylor & Francis Group, LLC.

    Keywords

    • crisis
    • growth
    • middle income
    • total factor productivity

    ASJC Scopus subject areas

    • Finance
    • Economics, Econometrics and Finance(all)

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