What Makes Growth Sustained?

35 Pages Posted: 24 Mar 2008

See all articles by Jonathan David Ostry

Jonathan David Ostry

International Monetary Fund (IMF)

Jeromin Zettelmeyer

Peter G. Peterson Institute for International Economics; CEPR

Date Written: July 2007

Abstract

We identify structural breaks in economic growth in 140 countries and use these to define growth spells: periods of high growth preceded by an upbreak and ending either with a down break or with the end of the sample. Growth spells tend to be shorter in African and Latin American countries than elsewhere. We find that growth duration is positively related to: the degree of equality of the income distribution; democratic institutions; export orientation (with higher propensities to export manufactures, greater openness to FDI, and avoidance of exchange rate overvaluation favorable for duration); and macroeconomic stability (with even moderate instability curtailing growth duration).

Keywords: Economic growth, Income distribution, Trade, Foreign direct investment

Suggested Citation

Ostry, Jonathan David and Zettelmeyer, Jeromin, What Makes Growth Sustained? (July 2007). IMF Working Papers, Vol. , pp. 1-33, 2007. Available at SSRN: https://ssrn.com/abstract=1112161

Jonathan David Ostry (Contact Author)

International Monetary Fund (IMF)

700 19th Street, N.W.
Washington, DC 20431
United States

Jeromin Zettelmeyer

Peter G. Peterson Institute for International Economics ( email )

1750 Massachusetts Avenue, NW
Washington, DC 20036
United States

CEPR ( email )

London
United Kingdom

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