TY - JOUR
T1 - The Landscape of Economic Growth
T2 - Do Middle-Income Countries Differ?
AU - Eichengreen, Barry
AU - Park, Donghyun
AU - Shin, Kwanho
N1 - Funding Information:
This work was supported by the Asian Development Bank.
Publisher Copyright:
Copyright © Taylor & Francis Group, LLC.
PY - 2018/3/16
Y1 - 2018/3/16
N2 - 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.
AB - 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.
KW - crisis
KW - growth
KW - middle income
KW - total factor productivity
UR - http://www.scopus.com/inward/record.url?scp=85041863983&partnerID=8YFLogxK
U2 - 10.1080/1540496X.2017.1419427
DO - 10.1080/1540496X.2017.1419427
M3 - Review article
AN - SCOPUS:85041863983
SN - 1540-496X
VL - 54
SP - 836
EP - 858
JO - Emerging Markets Finance and Trade
JF - Emerging Markets Finance and Trade
IS - 4
ER -