Why Guyana's self discovery is the missing link in its development strategy
The 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.
|Date of creation:||Jan 2013|
|Date of revision:|
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- Hausmann, Ricardo & Pritchett, Lant & Rodrik, Dani, 2004.
CEPR Discussion Papers
4538, C.E.P.R. Discussion Papers.
- Hausmann, Ricardo & Pritchett, Lant & Rodrik, Dani, 2004. "Growth Accelerations," Working Paper Series rwp04-030, Harvard University, John F. Kennedy School of Government.
- Ricardo Hausmann & Lant Pritchett & Dani Rodrik, 2004. "Growth Accelerations," NBER Working Papers 10566, National Bureau of Economic Research, Inc.
- Abdul Qayyum & Idrees Khawaja & Asma Hyder, 2008.
"Growth Diagnostics in Pakistan,"
2008:47, Pakistan Institute of Development Economics.
- Hausmann, Ricardo & Rodrik, Dani, 2002.
"Economic Development as Self-Discovery,"
Working Paper Series
rwp02-023, Harvard University, John F. Kennedy School of Government.
- Ebrima A Faal, 2003. "Currency Demand, the Underground Economy, and, Tax Evasionâ€”The Case of Guyana," IMF Working Papers 03/7, International Monetary Fund.
- 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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