Economic Policy, Institutional Development, and Income Growth: How Arab Countries Compare with Other Developing Countries
AbstractSimilar to most other developing countries, almost all Arab countries failed to catch up economically with advanced industrial countries. This paper discusses three possible explanations of the disappointing growth performance: (i) an insufficient reformmindedness of developing country governments, (ii) counterproductive policy recipes of the Washington Consensus and (iii) more deeply rooted barriers to growth related to institutional deficiencies prevailing in various developing countries. The empirical evidence for Arab countries and other developing countries provides little support to the first two hypotheses. By contrast, institutional development is shown to have a significant impact on policy-related variables and the growth performance of developing countries. For Arab countries as a group, institutional development is more advanced than for the control group of other developing countries. Yet, serious institutional deficiencies tend to constrain future growth in several Arab countries. These findings have important implications for national policymakers and the international community.
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Bibliographic InfoPaper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1183.
Length: 38 pages
Date of creation: Sep 2003
Date of revision:
Washington Consensus; implementation deficits; effectiveness of reforms; institutional growth determinants;
Find related papers by JEL classification:
- O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General
- O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-04-11 (All new papers)
- NEP-CWA-2004-04-11 (Central & Western Asia)
- NEP-DEV-2004-04-11 (Development)
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.:
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- William Easterly, 2002. "The Elusive Quest for Growth: Economists' Adventures and Misadventures in the Tropics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262550423.
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