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 language | English |
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Pages (from-to) | 836-858 |
Number of pages | 23 |
Journal | Emerging Markets Finance and Trade |
Volume | 54 |
Issue number | 4 |
DOIs | |
Publication status | Published - 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)