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Sri Lanka's Sources of Growth

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  • Nombulelo Duma
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    Abstract

    This paper uses the growth accounting framework to assess Sri Lanka''s sources of growth. It finds that while labor was the dominant factor contributing to growth in the 1980s, labor''s contribution declined over time and was overtaken, to a large extent, by total factor productivity (TFP) and, to a lower extent, by physical and human capital accumulation. A higher growth path over the medium term will depend on securing a stable political and macroeconomic environment; implementing structural reforms necessary to improve productivity and efficiency of investment; attaining fiscal consolidation; and creating space for the private sector.

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    Bibliographic Info

    Paper provided by International Monetary Fund in its series IMF Working Papers with number 07/225.

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    Length: 25
    Date of creation: 01 Sep 2007
    Date of revision:
    Handle: RePEc:imf:imfwpa:07/225

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    Related research

    Keywords: Economic growth; Capital accumulation; growth accounting; unemployment; real gdp; gdp growth; employment; total factor productivity; rate of unemployment; capital formation; gross fixed capital formation; economic growth performance; gdp per capita; fixed capital formation; nairu; labor migration; employed person; employment rate; natural rate of unemployment; unemployment rate; skilled labor; labor force data; per capita income; rates of unemployment; growth rate; foreign employment; growth rates; employment growth; unemployed;

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    1. Barry P. Bosworth & Susan M. Collins, 2003. "The Empirics of Growth: An Update," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 34(2), pages 113-206.
    2. Barro, Robert J, 1999. " Notes on Growth Accounting," Journal of Economic Growth, Springer, vol. 4(2), pages 119-37, June.
    3. Alberto Musso & Thomas Westermann, 2005. "Assessing potential output growth in the euro area - a growth accounting perspective," Occasional Paper Series 22, European Central Bank.
    4. Albers, Ronald & Vijselaar, Focco, 2002. "New technologies and productivity growth in the euro area," Working Paper Series 0122, European Central Bank.
    5. Dani Rodrik & Arvind Subramanian, 2004. "Why India Can Grow At 7 Percent a Year or More," IMF Working Papers 04/118, International Monetary Fund.
    6. Yisheng Bu, 2006. "Fixed capital stock depreciation in developing countries: Some evidence from firm level data," Journal of Development Studies, Taylor & Francis Journals, vol. 42(5), pages 881-901.
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