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ON THE PROCESS OF GROWTH AND ECONOMIC POLICY IN DEVELOPING COUNTRIES

Source: www.econ.ucla.edu
Topic: Economic Policy

Sort Desciption: relationship of economic policies to. economic growth and how the process ... economic policy can operate to liberate. the forces of growth. ...

Content Inside: ON THE PROCESS OF GROWTH AND ECONOMIC POLICY IN DEVELOPING COUNTRIES PPC Issue Paper No. 13 December 2005 PN-ADE-081 This paper is available from USAIDs Development Experience Clearinghouse (DEC).To order or download go to dec.usaid.gov and enter the document identification number in the search box (see front cover).The DEC may also be contacted at 8403 Colesville Rd. Ste. 210 Silver Spring MD 20910; tel 301-562-0641; fax 301-588-7787; email docorder@dec.usaid.gov. Editorial design and production assistance was provided by IBI-International Business InitiativesArlingtonVA under contract no. HFM-C-00-01-00143-00. For more information contact IBIs Publications and Graphics Support Project at 703-525-2224 or pgsp@ibi-usa. Cover photos: Top L to R: Malcolm Romain iStockphoto; WWW-Cannon/Edward Parker; Ivan Chuyev iStockphoto; USAID; John W. Allen Partnerships for Food Industry Development Michigan State University Bottom L to R: USDA; Laura Lartigue USAID; USAID; USAID; USAID ONTHE PROCESS OF GROWTH AND ECONOMIC POLICY IN DEVELOPING COUNTRIES Bureau for Policy and Program Coordination Arnold C. Harberger University of California Los Angeles The findings and conclusions in this report are those of the author and do not necessarily represent the views of USAID. ON THE PROCESS OF GROWTH AND ECONOMIC POLICY IN DEVELOPING COUNTRIES iii Contents Figures andTables .iv Preface . vii Acknowledgments ix Introduction . 1 The Recent Record of Unprecedented Success . 1 Dissecting the Process of Economic Growth . 3 The Role of Economic Policies . 5 The Results of Good Policies 5 Effects ofTrade Liberalization 6 Growth as anAccumulation of Changes in Level . 8 The Role of Creative Destruction . 10 Infrastructure and Economic Growth 12 Exploring Successful Growth Episodes . 14 More on Export Growth 20 Project Evaluation as a Development Policy . 23 Economic Growth and Poverty Relief 26 Conclusion . 27 Appendix 1.Notes . 29 Appendix 2.Data 35 Referenc ...

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