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Why Economic Growth Trends Differ So Much Across Developing Countries. The Globalization Debate and Its Relevance to Pakistan

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  • Peter Nunnenkamp

Abstract

The claim of globalization critics that the income gap to industrial countries is bound to widen for essentially all developing countries as a consequence of economic globalization is in conflict with empirical evidence. Economic performance differs tremendously across developing countries. We discuss several factors such as capital accumulation, openness to trade and foreign indebtedness which may explain the varying experience with globalization in regard to per capita income growth and income distribution. Economic restructuring is shown to represent an important – though frequently neglected – link between globalization and country-specific performance. We conclude that national policymakers continue to have effective leverage to promote economic catching- up and poverty alleviation in the countries they govern.

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Bibliographic Info

Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1091.

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Length: 50 pages
Date of creation: Jan 2002
Date of revision:
Handle: RePEc:kie:kieliw:1091

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Related research

Keywords: economic growth; income inequality; economic restructuring; openness to trade; globalization critics;

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References

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  1. Jeffrey D. Sachs & Andrew M. Warner, 1995. "Economic Convergence and Economic Policies," Harvard Institute of Economic Research Working Papers 1715, Harvard - Institute of Economic Research.
  2. Robert J. Barro, 1991. "Economic Growth in a Cross Section of Countries," NBER Working Papers 3120, National Bureau of Economic Research, Inc.
  3. Mankiw, N Gregory & Romer, David & Weil, David N, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, MIT Press, vol. 107(2), pages 407-37, May.
  4. Jeffrey Sachs & Harry Huizinga, 1987. "U.S. Commercial Banks and the Developing Country Debt Crisis," NBER Working Papers 2455, National Bureau of Economic Research, Inc.
  5. Geoffrey J. Bannister, 2001. "International Trade and Poverty Alleviation," IMF Working Papers 01/54, International Monetary Fund.
  6. Gary G. Moser & Toshihiro Ichida, 2001. "Economic Growth and Poverty Reduction in Sub-Saharan Africa," IMF Working Papers 01/112, International Monetary Fund.
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Cited by:
  1. Baliamoune, Mina N., 2002. "Assessing the Impact of One Aspect of Globalization on Economic Growth in Africa," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  2. Looney, R. & Frederiksen, P. C., 2004. "An assessment of relative globalization in Asia during the 1980s and 1990s," Journal of Asian Economics, Elsevier, vol. 15(2), pages 267-285, April.

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