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Growth Divergences: Explaining Differences in Economic Performance

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Unlike the 1950s and 1960s, when the rising tide of economic growth lifted most economies, the last three decades have been characterized by a paradox of greater international economic integration as well as divergent economic growth performances. In recent years, most developing countries have grown faster than the developed economies. But the converse has been true in the 1980s and 1990s, except for a number of mostly Asian developing economies. Hence, the growing North-South gap of the last two centuries has ...

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Overview

Unlike the 1950s and 1960s, when the rising tide of economic growth lifted most economies, the last three decades have been characterized by a paradox of greater international economic integration as well as divergent economic growth performances. In recent years, most developing countries have grown faster than the developed economies. But the converse has been true in the 1980s and 1990s, except for a number of mostly Asian developing economies. Hence, the growing North-South gap of the last two centuries has been moderated by the better economic performance of China, India and others in East Asia, implying the expansion of the 'middle income' category.

This volume of analytical studies seeks to explain these major differences in economic performance in recent decades by considering the dynamics of international economic growth, diverging growth rates, economic structures, and sources of demand, successes and collapses in the developing world, recent episodes of real income stagnation of countries. Several chapters critically review recent misleading claims and the conventional wisdom regarding the relationship of trade liberalization, financial development, development, aid, infrastructure spending, violent conflict, good governance, and industrial policy to economic growth.

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Product Details

  • ISBN-13: 9781842778814
  • Publisher: Zed Books
  • Publication date: 1/22/2008
  • Pages: 400
  • Product dimensions: 5.54 (w) x 8.57 (h) x 0.75 (d)

Meet the Author

Jomo K. S. is Assistant Secretary General for Economic Development based in the Department of Economic and Social Affairs (DESA) of the United Nations Secretariat. José Antonio Ocampo is Under-Secretary General for the Department of Economic and Social Affairs (DESA) in the United Nations Secretariat. Rob Vos is Director of the Development Policy and Analysis Division at the Department of Economic and Social Affairs of the United Nations.

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Table of Contents

Acknowledgements     vii
Overview     viii
Explaining Growth Divergences   Jose Antonio Ocampo   Jomo K. S.   Rob Vos     1
Mind the Gaps: Economic Openness and Uneven Development   Richard Kozul-Wright     25
Productive Structure and Effective Demand during the Great Divergence: Regional Contrasts   Codrina Rada   Lance Taylor     67
Explaining the Dual Divergence: The Role of External Shocks and Specialization Patterns   Jose Antonio Ocampo   Maria Angela Parra     98
Growth Empirics in a Complex World: A Guide for Applied Economists and Policymakers   Francisco Rodriguez     128
Industrial Policy and Growth   Helen Shapiro     148
Openness and Growth: What Have We Learned?   Francisco Rodriguez     172
Financial Development and Economic Growth: A Critical View   E. V. K. FitzGerald     204
Aid Does Matter After All: Revisiting the Relationship between Aid and Growth   Camelia Minoiu   Sanjay G. Reddy     236
Have Collapses in Infrastructure Spending Led to Cross-Country Divergence in Per Capita GDP?   Francisco Rodriguez     259
Governance, Economic Growth and Development since the 1960s   Mushtaq H. Khan     285
The Conflict-Growth Nexus and the Poverty of Nations   Syed Mansoob Murshed     324
Contributors     352
Index     356

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