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Who Can Explain the Mauritian Miracle: Meade, Romer, Sachs, or Rodrik?

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Author Info
Devesh Roy
Arvind Subramanian

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Abstract

This paper examines different explanations-initial conditions, openness to trade and FDI, and institutions-of the Mauritian growth experience since the mid-1970s. We show that arguments based on openness to trade and FDI are either misleading or incomplete, and the transmission mechanism insufficiently identified. However, even when correctly articulated, openness appears to be a proximate rather than an underlying explanation for the Mauritian experience. The institution-based explanation offers greater promise. Ultimately, however, the econometric results indicate that existing explanations may be incomplete. Some idiosyncratic factors, particularly Mauritian diversity and the responses to managing it, may provide the missing pieces in the story of Mauritius's success.

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Paper provided by International Monetary Fund in its series IMF Working Papers with number 01/116.

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Length: 42 pages
Date of creation: 10 Sep 2001
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Handle: RePEc:imf:imfwpa:01/116

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Related research
Keywords: Economic growth ; Mauritius ; Trade liberalization ; Manpower policy ;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Susan M. Collins & Barry P. Bosworth, 1996. "Economic Growth in East Asia: Accumulation versus Assimilation," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 27(1996-2), pages 135-204. [Downloadable!]
  2. Mauro, Paolo, 1995. "Corruption and Growth," The Quarterly Journal of Economics, MIT Press, vol. 110(3), pages 681-712, August. [Downloadable!] (restricted)
  3. Rodrik, Dani, 1999. " Where Did All the Growth Go? External Shocks, Social Conflict, and Growth Collapses," Journal of Economic Growth, Springer, vol. 4(4), pages 385-412, December. [Downloadable!] (restricted)
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  4. Paul Cashin & Catherine A. Pattillo, 2000. "Terms of Trade Shocks in Africa - Are They Short-Lived or Long-Lived?," IMF Working Papers 00/72, International Monetary Fund.
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  5. Coe, David T & Helpman, Elhanan & Hoffmaister, Alexander, 1995. "North-South R&D Spillovers," CEPR Discussion Papers 1133, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  6. Francisco Rodriguez & Dani Rodrik, 1999. "Trade Policy and Economic Growth: A Skeptic's Guide to the Cross-national Evidence," Electronic Working Papers 99-003, University of Maryland, Department of Economics. [Downloadable!]
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  7. Francisco Rodriguez & Dani Rodrik, 1999. "Trade Policy and Economic Growth: A Skeptic's Guide to Cross-National Evidence," NBER Working Papers 7081, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  8. Arvind Subramanian, 2000. "Trade and Trade Policies in Eastern and Southern Africa," IMF Occasional Papers 196, International Monetary Fund.
  9. Sachs, Jeffrey D & Warner, Andrew M, 1997. "Sources of Slow Growth in African Economies," Journal of African Economies, Oxford University Press, vol. 6(3), pages 335-76, October.
  10. Paul Collier & Jan Willem Gunning, 1999. "Explaining African Economic Performance," Journal of Economic Literature, American Economic Association, vol. 37(1), pages 64-111, March. [Downloadable!] (restricted)
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  11. A. Dalmazzo & Guido De Blasio, 2001. "Resources and Incentives to Reform: A Model and Some Evidence on Sub-Saharan African Countries," IMF Working Papers 01/86, International Monetary Fund. [Downloadable!]
  12. Daron Acemoglu & Simon Johnson & James A. Robinson, 2000. "The Colonial Origins of Comparative Development: An Empirical Investigation," NBER Working Papers 7771, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  13. Arvind Subramanian & Natalia T. Tamirisa, . "Africa's Trade Revisted," IMF Working Papers 01/33, International Monetary Fund. [Downloadable!]
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Vittas, Dimitri, 2003. "The insurance industry in Mauritius," Policy Research Working Paper Series 3034, The World Bank. [Downloadable!]
  2. Mattoo, Aaditya & Roy, Devesh & Subramanian, Arvind, 2002. "The Africa Growth and Opportunity Act and its rules of origin : generosity undermined?," Policy Research Working Paper Series 2908, The World Bank. [Downloadable!]
    Other versions:
  3. Subramanian, Arvind, 2009. "The Mauritian Success Story and its Lessons," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  4. Rodrik, Dani, 2003. "Growth Strategies," CEPR Discussion Papers 4100, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  5. Laaksonen, Kalle & Maki-Franti, Petri & Virolainen, Meri, 2007. "Mauritius and Jamaica as Case Studies of the Lome Sugar Protocol," Working Papers 18855, TRADEAG - Agricultural Trade Agreements. [Downloadable!]
  6. Hazama, Yasushi, 2008. "The Political Economy of Growth: A Review," IDE Discussion Papers 141, Institute of Developing Economies, Japan External Trade Organization(JETRO). [Downloadable!]
  7. Habiyaremye, Alexis & Ziesemer, Thomas, 2008. "Export Demand Elasticities as Determinants of Growth: Estimates for Mauritius," UNU-MERIT Working Paper Series 072, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology. [Downloadable!]
  8. Baliamoune, Mina N., 2002. "Assessing the Impact of One Aspect of Globalization on Economic Growth in Africa," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  9. Vittas, Dimitri, 2003. "The role of occupational pension funds in Mauritius," Policy Research Working Paper Series 3033, The World Bank. [Downloadable!]
  10. Bastos, Fabiano & Angelo Divino, Jose, 2009. "Exchange rate and output fluctuations in the small open economy of Mauritius," Policy Research Working Paper Series 5065, The World Bank. [Downloadable!]
  11. Nathaniel John Porter, 2004. "Wage Compression, Employment Restrictions and Unemployment: The Case of Mauritius," IMF Working Papers 04/205, International Monetary Fund. [Downloadable!]
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