Why Guyana's self discovery is the missing link in its development strategy
AbstractThe paper attempts to indentify the constraints to growth in Guyana using the Hausmann et al (2005) methodology. Although Guyana suffers from low domestic savings and high interest rate spreads, the paper argues that high cost of finance is a non-binding constraint on entrepreneurial activity. The paper concludes that market failures such as information externalities is a binding constraint on growth in Guyana. It explains the country’s static economic structure and why the composition of its export basket has not changed in 46 years. The paper recommends non-competitive policies to stimulate structural transformation and to internalise the information externalities.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 44205.
Date of creation: Jan 2013
Date of revision:
Economic Growth; Growth Diagnostics; Information Externalities; Imperfect Competition;
Find related papers by JEL classification:
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-02-16 (All new papers)
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.:
- Khemraj, Tarron, 2007. "The missing link: the finance-growth nexus and the Guyanese growth stagnation," MPRA Paper 16342, University Library of Munich, Germany.
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- Ricardo Hausmann & Dani Rodrik, 2002. "Economic Development as Self-Discovery," NBER Working Papers 8952, National Bureau of Economic Research, Inc.
- Ebrima Faal, 2003. "Currency Demand, the Underground Economy, and Tax Evasion: The Case of Guyana," IMF Working Papers 03/7, International Monetary Fund.
- Abdul Qayyum & Idrees Khawaja & Asma Hyder, 2008.
"Growth Diagnostics in Pakistan,"
2008:47, Pakistan Institute of Development Economics.
- Hausmann, Ricardo & Pritchett, Lant & Rodrik, Dani, 2004.
Working Paper Series
rwp04-030, Harvard University, John F. Kennedy School of Government.
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