American Economic Review Vol. 104 No. 5 2014

Learning From the Doers: Developing Country Lessons for Advanced Economy Growth

Anusha Chari¹; Peter Blair Henry²

¹ Department of Economics, University of North Carolina at Chapel Hill, Chapel Hill, NC 27599 and National Bureau of Economic Research (e-mail: ) · ² Leonard N. Stern School of Business, New York University, New York, NY 10002 and Brookings Institution (e-mail: )

Abstract

From 1980 to 1992, emerging and developing countries grew by 3.4 percent per year. Their annual rate of growth increased to 5.4 percent between 1993 and 2012. No such increase occurred for advanced nations, whose average growth from 1980 to 2012 was roughly constant (excluding the impact of the 2008-2009 Recession). Developing nations turned themselves around by embracing discipline-sustained commitment to a pragmatic and flexible growth strategy. Three illustrations of discipline through the lens of trade, fiscal, and debt reforms in the developing world offer relevant, practical lessons for recovery in advanced economies and continued catch-up growth in developing nations.

DOI

10.1257/aer.104.5.260

Volume

104

Issue

5

Pages

260-265

Language

en

Sources

bibtex:phds-export.bib openalex crossref

Cite

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