What Makes Growth Sustained?

35 Pages Posted: 24 Mar 2008

See all articles by Jonathan D. Ostry

Jonathan D. Ostry

Georgetown University; International Monetary Fund (IMF)

Jeromin Zettelmeyer

International Monetary Fund (IMF); Peterson Institute for International Economics; CEPR

Date Written: July 2007


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 D. and Zettelmeyer, Jeromin, What Makes Growth Sustained? (July 2007). IMF Working Paper No. 08/59, Available at SSRN: https://ssrn.com/abstract=1112161

Jonathan D. Ostry (Contact Author)

Georgetown University ( email )

Washington, DC 20057
United States

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

Jeromin Zettelmeyer

International Monetary Fund (IMF) ( email )

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

Peterson Institute for International Economics ( email )

1750 Massachusetts Avenue, NW
Washington, DC 20036
United States

CEPR ( email )

United Kingdom

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