Working Paper: NBER ID: w19934
Authors: Anusha Chari; Peter Blair Henry
Abstract: From 1980 to 1992, emerging and developing countries grew by 3.4 percent per year. Their annual rate of growth increased to 5.4 percent between 1993 and 2012. No such increase occurred for advanced nations, whose average growth from 1980-2012 was roughly constant (excluding the impact of the 2008-09 Recession). Developing nations turned themselves around by embracing discipline--sustained commitment to a pragmatic and flexible growth strategy. Three illustrations of discipline through the lens of trade, fiscal, and debt reforms in the developing world offer relevant, practical lessons for recovery in advanced economies and continued catch-up growth in developing nations.
Keywords: No keywords provided
JEL Codes: E62; E65; F43; O11; O19; O57
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Disciplined economic policies in developing countries (O20) | Higher growth rates in developing countries (O57) |
| Trade liberalization and fiscal policies (F13) | Economic performance in developing countries (O57) |
| Fiscal austerity measures under specific conditions (E62) | Positive economic outcomes (D78) |
| Disciplined approach (reforms in trade, fiscal policy, and debt management) (E69) | Improved economic outcomes (F69) |
| South Korea's transition from import substitution to export-oriented growth (O25) | Economic turnaround (O00) |
| Discipline in policy-making (D78) | Growth (O00) |