What Explains Developing Country Growth? / Magnus Blomstrom, Robert E. Lipsey, Mario Zejan.

Format:

Book

Author/Creator:

Blomstrom, Magnus.

Contributor:

National Bureau of Economic Research.

Lipsey, Robert E.

Zejan, Mario.

Series:

Working Paper Series (National Bureau of Economic Research) no. w4132.

NBER working paper series no. w4132

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1992.

Summary:

Among developing countries, there was no gross relationship between real income per capita in 1960 and subsequent growth in per capita income. However, once other significant influences, such as education, changes in labor force participation rates, inflows of foreign investment, price structures, and fixed investment ratios are taken into account, the lower the 1960 income level, the faster the income growth. This "conditional" convergence was particularly strong among the poorest half of the developing countries, contradicting the idea of a "convergence club" confined to relatively well-off countries. Inflows of direct investment were an important influence on growth rates for higher income developing countries, but not for lower income ones. For the latter group, secondary education, changes in labor force participation rates, and initial distance behind the United States were all major factors.

Notes:

Print version record

August 1992.