The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Emerging Markets

  • Joshua Aizenman
Reference work entry


The club of high-performing emerging markets is fairly concentrated in East Asia. Their TFP growth may not be extraordinary, though their growth rate is unprecedented. Factors argued to promote growth include trade, investment, external financing, and good governance. The importance of external financing is overrated – higher growth induces higher saving rate, allowing investment to be self-financed. Institutional changes as the key for take-off remains debatable – India and China took off without any prior major institutional overhaul. Allowing newcomers to challenge incumbents and the capacity to adjust policies to shocks may be the keys for sustainable growth.


Agency problems Asian miracle Emerging markets External financing Financial liberalization Financial risk Growth and governance Growth and institutions Growth and international trade High-performing Asian economies Moral hazard Savings Shocks Solow, R. Take-off Total factor productivity 

JEL Classifications

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© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Joshua Aizenman
    • 1
  1. 1.