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Rethinking the Growth Diagnostics Approach: Questions from the Practitioners

Author

Listed:
  • Felipe, Jesus

    (Asian Development Bank)

  • Usui, Norio

    (Asian Development Bank)

Abstract

The growth diagnostics methodology pioneered by Hausmann et al. (2005) is becoming a key piece of the toolkit for donor agencies in formulate their operational strategies. This paper aims at clarifying the primary objectives of the approach, highlighting some limitations for operational use. The key to benefiting from the full potential of this approach lies in a proper understanding of what it does; and being forewarned about the indiscriminate application of the approach to developing countries, for this can lead to misguided conclusions.

Suggested Citation

  • Felipe, Jesus & Usui, Norio, 2008. "Rethinking the Growth Diagnostics Approach: Questions from the Practitioners," ADB Economics Working Paper Series 132, Asian Development Bank.
    • Handle: RePEc:ris:adbewp:0132
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    References listed on IDEAS

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    1. Robert Boyer, 2006. "Employment and decent work in the era of flexicurity," PSE Working Papers halshs-00590452, HAL.
    2. Nancy Birdsall, 2010. "The Washington Consensus: Assessing a Damaged Brand - Working Paper 213," Working Papers 213, Center for Global Development.
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    6. J. S. L. McCombie & A. P. Thirlwall, 1994. "Economic Growth and the Balance-of-Payments Constraint," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-23121-8.
    7. Ricardo Hausmann, 2006. "Economic Growth: Shared Beliefs, Shared Disappointments?," CID Working Papers 125, Center for International Development at Harvard University.
    8. World Bank, 2006. "Fostering Higher Growth and Employment in the Kingdom of Morocco," World Bank Publications - Books, The World Bank Group, number 7114, December.
    9. Robert Boyer, 2006. "Employment and decent work in the era of flexicurity," Working Papers halshs-00590452, HAL.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Gabrisch, Hubert, 2014. "The binding constraint on growth in less developed Western Balkan countries," MPRA Paper 60020, University Library of Munich, Germany.
    2. Themba G. Chirwa & Nicholas M. Odhiambo, 2021. "Binding constraints to productive investment in Malawi: A modified HRV framework," African Development Review, African Development Bank, vol. 33(1), pages 130-153, March.
    3. Michael Walton, 2023. "Adaptive Evaluation: A Complexity-Based Approach to Systematic Learning for Innovation and Scaling in Development," CID Working Papers 428, Center for International Development at Harvard University.
    4. Ricardo Hausmann & Bailey Klinger & Rodrigo Wagner, 2008. "Doing Growth Diagnostics in Practice: A 'Mindbook'," CID Working Papers 177, Center for International Development at Harvard University.
    5. Eric Kemp-Benedict & Crystal Drakes & Nella Canales, 2020. "A Climate-Economy Policy Model for Barbados," Economies, MDPI, vol. 8(1), pages 1-21, February.
    6. Jigar D. Bhatt, 2022. "Are growth diagnostics biased against the poor? Evidence from the Millennium Challenge Corporation," Development Policy Review, Overseas Development Institute, vol. 40(2), March.
    7. Dragan TEVDOVSKI & Vladimir FILIPOVSKI & Igor IVANOVSKI, 2014. "A Diagnostics Approach To Economic Growth In Small Open Economies: The Case Of The Republic Of Macedonia," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 13, pages 47-68, June.
    8. Castañeda, Gonzalo & Chávez-Juárez, Florian & Guerrero, Omar A., 2018. "How do governments determine policy priorities? Studying development strategies through spillover networks," Journal of Economic Behavior & Organization, Elsevier, vol. 154(C), pages 335-361.
    9. Meerim Sydykova & Carlos Rodriguez, 2018. "Diagnosing Growth Constraints in Central Asia: The Case of the Kyrgyz Republic," Journal of Developing Societies, , vol. 34(3), pages 297-324, September.
    10. Matthijs Janssen, 2016. "What bangs for your bucks? Assessing the design and impact of transformative policy," Innovation Studies Utrecht (ISU) working paper series 16-05, Utrecht University, Department of Innovation Studies, revised Dec 2016.
    11. Meerim Sydykova, 2015. "Diagnosing Growth Constraints in Central Asia: The Case of the Kyrgyz Republic," ERSA conference papers ersa15p1626, European Regional Science Association.
    12. Mauricio SANTAMARIA SALAMANCA & Gabriel PIRAQUIVE GALEANO & Gustavo HERNANDEZ DIAZ & Norberto ROJAS DELGADILLO, 2013. "Crecimiento económico y desempleo: Retos a largo plazo," Archivos de Economía 11202, Departamento Nacional de Planeación.
    13. Harald HABERMANN & Pablo PADRUTT, 2011. "Growth Diagnostics: Strengths and Weaknesses of a Creative Analytical Framework to Identify Economic Growth Constraints in Developing Countries," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 1(7), pages 1-25, December.

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    More about this item

    Keywords

    approach; diagnostics; donor agencies; limitations; operational strategies;
    All these keywords.

    JEL classification:

    • O20 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - General
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth

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