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A Quality of Growth Index for Developing Countries: A Proposal

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  • Mr. Sampawende J Tapsoba
  • Rene Tapsoba
  • Mr. Montfort Mlachila

Abstract

This paper proposes a new quality of growth index (QGI) for developing countries. The index encompasses both the intrinsic nature and social dimensions of growth, and is computed for over 90 countries for the period 1990-2011. The approach is premised on the fact that not all growth is created equal in terms of social outcomes, and that it does matter how one reaches from one level of income to another for various theoretical and empirical reasons. The paper finds that the quality of growth has been improving in the vast majority of developing countries over the past two decades, although the rate of convergence is relatively slow. At the same time, there are considerable cross-country variations across income levels and regions. Finally, emprirical investigations point to the fact that main factors of the quality of growth are political stability, public pro-poor spending, macroeconomic stability, financial development, institutional quality and external factors such as FDI.

Suggested Citation

  • Mr. Sampawende J Tapsoba & Rene Tapsoba & Mr. Montfort Mlachila, 2014. "A Quality of Growth Index for Developing Countries: A Proposal," IMF Working Papers 2014/172, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:2014/172
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    References listed on IDEAS

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    More about this item

    Keywords

    WP; correlation matrix; composite index; final period; standard deviation; Quality of growth; social indicators; QGI score; benchmark QGI; QGI process; QGI dynamics; growth fundamentals; QGI value; QGI performance; Inclusive growth; Personal income; Income inequality; Sub-Saharan Africa; Africa;
    All these keywords.

    JEL classification:

    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • I10 - Health, Education, and Welfare - - Health - - - General
    • I20 - Health, Education, and Welfare - - Education - - - General
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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