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Markets and Growth

  • Stepan Jurajda

    (CERGE-EI)

  • Janet Mitchell

    (Facultes universitaires Saint Louis)

This paper studies key markets (financial, labor, natural resource, and product) to assess how they are facilitating or constraining growth. First, we draw on the body of existing theoretical and empirical literature to discuss the links between markets and growth. Second, we present four stylized scenarios of the process of growth, which summarize differences across six regions of the developing world. Financial market infrastructure and efficient factor reallocation in response to shocks appear to be among the most important growth determinants. We highlight the relative lack of research on the relationship between labor markets and growth, as opposed to the relationship between human capital production and growth. Finally, we combine suggestions of Topel (1999) and Pritchett (2000) to argue that country-specific markets should be a principal focus of future research on growth. This paper provides a framework for such studies.

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Paper provided by EconWPA in its series GE, Growth, Math methods with number 0111001.

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Length: 46 pages
Date of creation: 04 Nov 2001
Date of revision:
Handle: RePEc:wpa:wuwpge:0111001
Note: Type of Document - Acrobat PDF; pages: 46
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