Policy determinants of growth : survey of theory and evidence
This paper explores the broad themes of the literature on economic growth. It makesthe following two broad conclusions. First, it notes that the efficiency of investment is as important as the level of investment in determining growth performance. Secondly, it states that keeping to a minimum the distortion of resource allocation by government policies makes saving and investment more efficient and promotes long-term economic growth. Policies that contribute to the efficiency of investment and that lower distortions in resource allocation will thus generally encourage growth. Policies that promote investment, liberalize trade restrictions and remove distortions in financial markets are likely to raise a country's long-run rate of growth. It is noted, however, that more research is needed to formulate structural models of growth that give clear guidance on the effect of various policy measures.
|Date of creation:||31 Dec 1989|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (202) 477-1234
Web page: http://www.worldbank.org/Email:
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:343. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi)
If references are entirely missing, you can add them using this form.