Determinants of Economic Growth: A Bayesian Panel Data Approach

39 Pages Posted: 14 Oct 2010

See all articles by Enrique Moral-Benito

Enrique Moral-Benito

Banco de España; Universidad Carlos III de Madrid

Multiple version iconThere are 2 versions of this paper

Date Written: October 13, 2010

Abstract

Model uncertainty hampers consensus on the key determinants of economic growth. Some recent cross-country cross-sectional analyses have employed Bayesian Model Averaging to tackle the issue of model uncertainty. This paper extends that approach to panel data models with country-specific fixed effects in order to simultaneously address model uncertainty and endogeneity issues. The empirical findings suggest that in a panel setting the most robust growth determinants are the price of investment goods, distance to major world cities, and political rights.

Keywords: Growth determinants, model uncertainty, bayesian model averaging, dynamic panel estimation

JEL Classification: C11, C23, O4

Suggested Citation

Moral-Benito, Enrique, Determinants of Economic Growth: A Bayesian Panel Data Approach (October 13, 2010). Banco de Espana Working Paper No. 1031. Available at SSRN: https://ssrn.com/abstract=1691565 or http://dx.doi.org/10.2139/ssrn.1691565

Enrique Moral-Benito (Contact Author)

Banco de España ( email )

Alcala 50
Madrid 28014
Spain

Universidad Carlos III de Madrid ( email )

CL. de Madrid 126
Madrid, Madrid 28903
Spain

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