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Cross-country studies of growth and policy : methodological, conceptual, and statistical problems

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  • Levine, Ross
  • Renelt, David

Abstract

This paper reviews the conceptual, methodological, and statistical problems associated with drawing inferences from cross-country regressions. The authors elaborate on the particular problems associated with empirical attempts to link particular policies with long-run growth. They hope to stimulate improvements in the design, implementation, and interpretability of cross-country investigations and to caution readers about the confidence they place in existing findings.

Suggested Citation

  • Levine, Ross & Renelt, David, 1991. "Cross-country studies of growth and policy : methodological, conceptual, and statistical problems," Policy Research Working Paper Series 608, The World Bank.
    • Handle: RePEc:wbk:wbrwps:608
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    References listed on IDEAS

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    2. Mahmud, Hassan, 2008. "Why has Growth slowed in Sub-Saharan Africa: A System GMM-IV Approach," MPRA Paper 25910, University Library of Munich, Germany.
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    4. Hansen, Paul & King, Alan, 1996. "The determinants of health care expenditure: A cointegration approach," Journal of Health Economics, Elsevier, vol. 15(1), pages 127-137, February.
    5. António Afonso & Juan Alegre, 2011. "Economic growth and budgetary components: a panel assessment for the EU," Empirical Economics, Springer, vol. 41(3), pages 703-723, December.
    6. T. N. Srinivasan, 1995. "Long-Run Growth Theories and Empirics: Anything New?," NBER Chapters, in: Growth Theories in Light of the East Asian Experience, pages 37-70, National Bureau of Economic Research, Inc.
    7. Xuan-Vinh Vo, 2010. "Net private capital flows and economic growth-the case of emerging Asian economies," Applied Economics, Taylor & Francis Journals, vol. 42(24), pages 3135-3146.
    8. Garriga, Ana Carolina & Rodriguez, Cesar M., 2020. "More effective than we thought: Central bank independence and inflation in developing countries," Economic Modelling, Elsevier, vol. 85(C), pages 87-105.
    9. Fic, Tatiana & Ghate, Chetan, 2005. "The welfare state, thresholds, and economic growth," Economic Modelling, Elsevier, vol. 22(3), pages 571-598, May.
    10. de la Fuente, Angel, 1997. "The empirics of growth and convergence: A selective review," Journal of Economic Dynamics and Control, Elsevier, vol. 21(1), pages 23-73, January.
    11. Zee, Howell H., 1996. "Empirics of crosscountry tax revenue comparisons," World Development, Elsevier, vol. 24(10), pages 1659-1671, October.
    12. -, 2009. "Economics of climate change in Latin America and the Caribbean: summary 2009," Libros y Documentos Institucionales, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 2930 edited by Eclac, January.
    13. Lipow, Jonathan & Antinori, Camille M., 1995. "External security threats, defense expenditures, and the economic growth of less-developed countries," Journal of Policy Modeling, Elsevier, vol. 17(6), pages 579-595, December.
    14. Torrisi, Gianpiero, 2009. "Infrastructures and economic performance: a critical comparison across four approaches," MPRA Paper 18688, University Library of Munich, Germany.
    15. Joel Slemrod, 1995. "What Do Cross-Country Studies Teach about Government Involvement, Prosperity, and Economic Growth?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 26(2), pages 373-431.
    16. Diego Bastourre & Luis Casanova & Alejo Espora, 2011. "Tipo de Cambio Real y Crecimiento: Síntesis de la Evidencia y Agenda de Investigación," Department of Economics, Working Papers 082, Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata.
    17. Verner, Dorte, 2005. "What factors influence world literacy? is Africa different?," Policy Research Working Paper Series 3496, The World Bank.
    18. Khalifa Ghali, 1999. "Government size and economic growth: evidence from a multivariate cointegration analysis," Applied Economics, Taylor & Francis Journals, vol. 31(8), pages 975-987.
    19. Gurgul, Henryk & Lach, Łukasz, 2014. "Globalization and economic growth: Evidence from two decades of transition in CEE," Economic Modelling, Elsevier, vol. 36(C), pages 99-107.
    20. Lawrence Bouton & Mariusz A. Sumlinski, 2000. "Trends in Private Investment in Developing Countries : Statistics for 1970-1998," World Bank Publications - Books, The World Bank Group, number 13986.
    21. Christos T. Papadas & Sophia Efstratoglou, 2004. "Estimation of Regional Economic Convergence Equations Using Artificial Neural Networks with Cross Section Data," ERSA conference papers ersa04p149, European Regional Science Association.
    22. Ejaz Ghani & Musleh-Ud Din, 2006. "The Impact of Public Investment on Economic Growth in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 45(1), pages 87-98.
    23. Patricio Mujica & Jorge Quiroz, 1992. "Los Determinantes del Crecimiento Económico: la Evidencia Empírica y el Problema de Equivalencia Observacional," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 29(87), pages 307-328.
    24. Ahmed, Sadiq, 1994. "Explaining Pakistan's high growth performance over the past two decades : can it be sustained ?," Policy Research Working Paper Series 1341, The World Bank.
    25. Queiroz, Cesar & Gautam, Surhid, 1992. "Road infrastructure and economic development : some diagnostic indicators," Policy Research Working Paper Series 921, The World Bank.

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