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Recent developments in economic growth

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  • Diego Restuccia

Abstract

There are large differences in welfare—measured as gross domestic product (GDP) per capita—across nations. Over time, there are numerous country experiences in relative income of catch-up, collapse, and catch-up followed by a decline. What explains why some countries are rich and others poor? What are the determinants of catch up and collapse in relative income for individual countries? Assessing the determinants of income levels and growth across countries has been a challenging and exciting task in the recent literature of growth economics. I review the literature with a focus on quantitative explorations. A distinctive feature of the recent literature is an emphasis on resource allocation across heterogeneous productive units where these units can generically refer to sectors/industries or establishments. Substantial work remains to be done on identifying the fundamental determinants of resource allocation across productive units.

Suggested Citation

  • Diego Restuccia, 2011. "Recent developments in economic growth," Economic Quarterly, Federal Reserve Bank of Richmond, issue 3Q, pages 329-357.
  • Handle: RePEc:fip:fedreq:y:2011:i:3q:p:329-357:n:v.97no.3
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    References listed on IDEAS

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    Cited by:

    1. Hehe Liu & Tianyu Yang, 2015. "Explaining the Productivity Growth Gap Between China and India: The Role of Structural Transformation," The Developing Economies, Institute of Developing Economies, vol. 53(2), pages 100-121, June.
    2. Diego Restuccia, 2013. "The Latin American Development Problem: An Interpretation," ECONOMIA JOURNAL, THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION - LACEA, vol. 0(Spring 20), pages 69-108, January.

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