The Landscape of Economic Growth: Do Middle-Income Countries Differ?

36 Pages Posted: 30 May 2018

See all articles by Barry Eichengreen

Barry Eichengreen

University of California, Berkeley; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR)

Donghyun Park

Asian Development Bank - Economic Research

Kwanho Shin

Korea University

Date Written: August 2017

Abstract

We review the growth experience of middle-income countries. Economic factors associated with growth appear to differ between middle income and other countries. The efficiency of the financial system is importantly related to the growth rate in low- and middle-income countries, but appears to matter less as one moves up the income scale. Demographic variables also matter importantly in low-income countries. In middle-income countries, in contrast, measures of the financial system no longer appear to matter as importantly, as if inefficiencies in banking and financial systems are no longer as binding a constraint as at earlier stages of financial development; nor are demographic variables as important as before. At this point, other variables gain a growing role: these include whether the country experiences a banking or currency crisis, the extent of nonforeign direct investment capital inflows, and government debt as a share of gross domestic product.

Keywords: crisis, growth, middle income, total factor productivity

JEL Classification: O10, O40, O47

Suggested Citation

Eichengreen, Barry and Park, Donghyun and Shin, Kwanho, The Landscape of Economic Growth: Do Middle-Income Countries Differ? (August 2017). Asian Development Bank Economics Working Paper Series No. 517. Available at SSRN: https://ssrn.com/abstract=3187804 or http://dx.doi.org/10.2139/ssrn.3187804

Barry Eichengreen

University of California, Berkeley ( email )

310 Barrows Hall
Berkeley, CA 94720
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Donghyun Park (Contact Author)

Asian Development Bank - Economic Research ( email )

6 ADB Avenue, Mandaluyong City 1550
Metro Manila
Philippines

Kwanho Shin

Korea University ( email )

1 Anam-dong 5 ka
Sunbuk-Ku, Department of Economics
Seoul 136-701
Korea
82-2-3290-2220 (Phone)
82-2-3290-2719 (Fax)

HOME PAGE: econ.korea.ac.kr/~khshin

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