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Abstract

This paper examines the robustness of explanatory variables in cross-country economic growth regressions. It introduces and employs a novel approach, Bayesian Averaging of Classical Estimates (BACE), which constructs estimates by averaging OLS coefficients across models. The weights given to individual regressions have a Bayesian justification similar to the Schwarz model selection criterion. Of 67 explanatory variables we find 18 to be significantly and robustly partially correlated with long-term growth and another three variables to be marginally related. The strongest evidence is for the relative price of investment, primary school enrollment, and the initial level of real GDP per capita.

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File URL: http://www.aeaweb.org/articles.php?doi=10.1257/0002828042002570
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Bibliographic Info

Article provided by American Economic Association in its journal American Economic Review.

Volume (Year): 94 (2004)
Issue (Month): 4 (September)
Pages: 813-835

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Handle: RePEc:aea:aecrev:v:94:y:2004:i:4:p:813-835

Note: DOI: 10.1257/0002828042002570
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Find related papers by JEL classification:

• O51 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada
• O52 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Europe
• O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

References

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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:

1. Democracia y crecimiento económico volátil (Por David Cuberes)
   by Jesús Fernández-Villaverde in Nada Es Gratis on 2011-02-09 07:00:07
2. Why thereâ??s no â??GrowthGate:â? Frustration vs. Chicanery in Explaining Growth
   by William Easterly in Aid Watch on 2009-12-10 05:01:50
3. Did Nations that Boosted Education Grow Faster? , by Garett Jones
   by ? in Econlog on 2012-10-29 09:36:20

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