Learning from the Doers: Developing Country Lessons for Advanced Economy Growth
Anusha Chari, Peter Blair Henry
American Economic Review · 2014 · Volume 104 · Issue 5
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.
Keywords
Search, Learning, Information and Knowledge, Communication, Belief, Business Fluctuations, Cycles, Fiscal Policy, Financial Crises, Macroeconomic Analyses of Economic Development, Fiscal and Monetary Policy in Development, Measurement of Economic Growth, Aggregate Productivity, Cross-Country Output Convergence
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