Determinants of Economic Growth: Will Data Tell?

44 Pages Posted: 10 Oct 2007

See all articles by Antonio Ciccone

Antonio Ciccone

Universitat Pompeu Fabra - Faculty of Economic and Business Sciences; Centre for Economic Policy Research (CEPR); Institute for the Study of Labor (IZA)

Marek Jarocinski

European Central Bank (ECB)

Multiple version iconThere are 2 versions of this paper

Date Written: January 2008

Abstract

Many factors inhibiting and facilitating economic growth have been suggested. Will international income data tell which matter when all are treated symmetrically a priori? We find that growth determinants emerging from agnostic Bayesian model averaging and classical model selection procedures are sensitive to income differences across datasets. For example, many of the 1975-1996 growth determinants according to World Bank income data turn out to be irrelevant when using Penn World Table data instead (the WB adjusts for purchasing power using a slightly different methodology). And each revision of the 1960-1996 PWT income data brings substantial changes regarding growth determinants. We show that research based on stronger priors about potential growth determinants is more robust to imperfect international income data.

Keywords: growth regressions, robust growth determinants

JEL Classification: E01, O47

Suggested Citation

Ciccone, Antonio and Jarocinski, Marek, Determinants of Economic Growth: Will Data Tell? (January 2008). ECB Working Paper No. 852, Available at SSRN: https://ssrn.com/abstract=1020573 or http://dx.doi.org/10.2139/ssrn.1020573

Antonio Ciccone (Contact Author)

Universitat Pompeu Fabra - Faculty of Economic and Business Sciences ( email )

Ramon Trias Fargas 25-27
Barcelona, 08005
Spain
+34 93 542 1669 (Phone)
+34 93 542 1746 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Institute for the Study of Labor (IZA)

P.O. Box 7240
Bonn, D-53072
Germany

Marek Jarocinski

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany
+49 69 1344 6414 (Phone)

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
304
Abstract Views
5,290
Rank
180,386
PlumX Metrics