Journal of Economic Growth

, Volume 10, Issue 4, pp 303–329

Growth Accelerations

  • Ricardo Hausmann
  • Lant Pritchett
  • Dani Rodrik
Article

DOI: 10.1007/s10887-005-4712-0

Cite this article as:
Hausmann, R., Pritchett, L. & Rodrik, D. J Econ Growth (2005) 10: 303. doi:10.1007/s10887-005-4712-0

Unlike most cross country growth analyses, we focus on turning points in growth performance. We look for instances of rapid acceleration in economic growth that are sustained for at least 8 years and identify more than 80 such episodes since the 1950s. Growth accelerations tend to be correlated with increases in investment and trade, and with real exchange rate depreciations. Political-regime changes are statistically significant predictors of growth accelerations. External shocks tend to produce growth accelerations that eventually fizzle out, while economic reform is a statistically significant predictor of growth accelerations that are sustained. However, growth accelerations tend to be highly unpredictable: the vast majority of growth accelerations are unrelated to standard determinants and most instances of economic reform do not produce growth accelerations.

Keywords

economic reform growth episodes 

Copyright information

© Springer Science+Business Media, Inc. 2005

Authors and Affiliations

  • Ricardo Hausmann
    • 1
  • Lant Pritchett
    • 2
  • Dani Rodrik
    • 1
  1. 1.John F. Kennedy School of GovernmentHarvard UniversityUSA
  2. 2.The World BankUSA

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