Determinants Of Economic Growth: A Bayesian Panel Data Approach
AbstractDue to model uncertainty, there is no consensus about which are the most salient determinants of economic growth. To address model uncertainty, Bayesian Model Averaging approaches have recently been used in cross-country cross-sectional analyses. This paper extends these approaches to panel data models with country specific fixed effects. We find that when using this approach the strongest evidence of robustness is for the trade openness, the size of the labor force, the government consumption level and the Latin America dummy. Moreover, our results are robust to different prior assumptions on the expected model size.
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Bibliographic InfoPaper provided by CEMFI in its series Working Papers with number wp2007_0719.
Date of creation: Dec 2007
Date of revision:
Growth determinants; model uncertainty; Bayesian Model Averaging; dynamic panel estimation.;
Other versions of this item:
- Enrique Moral-Benito, 2012. "Determinants of Economic Growth: A Bayesian Panel Data Approach," The Review of Economics and Statistics, MIT Press, vol. 94(2), pages 566-579, May.
- Enrique Moral-Benito, 2010. "Determinants of economic growth: A Bayesian panel data approach," Banco de Espaï¿½a Working Papers 1031, Banco de Espa�a.
- Moral-Benito, Enrique, 2009. "Determinants of Economic Growth: A Bayesian Panel Data Approach," Policy Research Working Paper Series 4830, The World Bank.
- C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Longitudinal Data; Spatial Time Series
- O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
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