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Determinants of Economic Growth: A Bayesian Panel Data Approach

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  • Enrique Moral-Benito

Abstract

Model uncertainty hampers consensus on the key determinants of economic growth. Some recent cross-country cross-sectional analyses have employed Bayesian Model Averaging to address the issue of model uncertainty. This paper extends that approach to panel data models with country-specific fixed effects. The empirical results show that the most robust growth determinants are investment price, air distance to big cities and political rights. Moreover, the results are robust to different prior assumptions on expected model size.

Suggested Citation

  • Enrique Moral-Benito, 2007. "Determinants of Economic Growth: A Bayesian Panel Data Approach," Working Papers wp2007_0719, CEMFI.
    • Handle: RePEc:cmf:wpaper:wp2007_0719
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    More about this item

    JEL classification:

    • C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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