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Does a Leapfrogging Growth Strategy Raise Growth Rate? Some International Evidence

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  • Zhi Wang
  • Shang-Jin Wei
  • Anna Wong

Abstract

While openness to trade is a well-recognized hallmark of many successful emerging market economies known as “growth miracles,” another component of the growth model is a leapfrogging strategy – the use of policies to guide the industrial structural transformation ahead of a country's factor endowment. Does the leapfrogging strategy work? Opinions vary but the evidence is scarce in part because it is more difficult to measure the degree of leapfrogging than the extent of trade openness. We undertake a systematic look at the evidence across countries to assess the efficacy of such a strategy. So far, there is no strong and robust evidence that this strategy works reliably. Future research can explore a number of refinements.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 16390.

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Date of creation: Sep 2010
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Handle: RePEc:nbr:nberwo:16390

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  1. Francisco Rodríguez, 2006. "Cleaning Up the Kitchen Sink: Growth Empirics When the World Is Not Simple," Wesleyan Economics Working Papers 2006-004, Wesleyan University, Department of Economics, revised 17 May 2007.
  2. Robert Koopman & Zhi Wang & Shang-Jin Wei, 2008. "How Much of Chinese Exports is Really Made In China? Assessing Domestic Value-Added When Processing Trade is Pervasive," NBER Working Papers 14109, National Bureau of Economic Research, Inc.
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Cited by:
  1. Söderbom, Måns & Weng, Qian, 2012. "Multi-product firms, product mix changes and upgrading: Evidence from China's state-owned forest areas," Working Papers in Economics 525, University of Gothenburg, Department of Economics.

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