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A non-linear sensitivity analysis of cross-country growth regressions

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  • Pantelis Kalaitzidakis
  • Theofanis P. Mamuneas
  • Thanasis Stengos

Abstract

We extend the sensitivity analysis of cross-country growth regressions of Levine and Renelt (1992) by introducing a semi-parametric formulation of their regression function. Our results differ from theirs in how certain policy variables affect growth rates. We find that distortion variables, such as the standard deviation of gross domestic credit and inflation and real exchange rate distortions, have a robust negative effect on growth.

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Bibliographic Info

Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

Volume (Year): 33 (2000)
Issue (Month): 3 (August)
Pages: 604-617

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Handle: RePEc:cje:issued:v:33:y:2000:i:3:p:604-617

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