nep-fdg New Economics Papers
on Financial Development and Growth
Issue of 2007‒11‒03
two papers chosen by
Iulia Igescu
Global Insight, GmbH

  1. Determinants of Economic Growth: Will Data Tell? By Ciccone, Antonio; Jarocinski, Marek
  2. The Role of Fiscal Transparency in Sustaining Stability and Growth in Latin America By Taryn Parry

  1. By: Ciccone, Antonio; Jarocinski, Marek
    Abstract: Many factors inhibiting and facilitating economic growth have been suggested. Will international income data tell which matter when all are treated symmetrically a priori? We find that growth determinants emerging from agnostic Bayesian model averaging and classical model selection procedures are sensitive to income differences across datasets. For example, many of the 1975-1996 growth determinants according to World Bank income data turn out to be irrelevant when using Penn World Table data instead (the WB adjusts for purchasing power using a slightly different methodology). And each revision of the 1960-1996 PWT income data brings substantial changes regarding growth determinants. We show that research based on stronger priors about potential growth determinants is more robust to imperfect international income data.
    Keywords: growth regressions; robust growth determinants
    JEL: E01 O47
    Date: 2007–10
  2. By: Taryn Parry
    Abstract: Latin America has experienced a resurgence in growth in recent years. However, it is also a region that has been prone to crises while growth has not delivered a significant reduction in poverty and inequality. Maintaining a strong and stable macroeconomic performance in Latin America will depend on further cuts in public debt, identification and reduction of fiscal vulnerabilities and improvements in the quality of public spending. Improvements in governance and the business environment will also aid in attracting investment. This paper draws on assessments of fiscal transparency in twelve countries in Latin America to highlight good fiscal management and improvements in fiscal transparency that might enhance the prospect for sound fiscal performance and a more favorable investment environment. This would be an important step toward sustaining stable, higher quality growth in the region.
    Keywords: Working Paper , Latin America , Fiscal transparency , Fiscal management , Economic stabilization , Economic growth ,
    Date: 2007–09–18

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