Mirjalili, Seyed hossein (2016): آسیب شناسی رشد اقتصادی. Published in: Economic Studies , Vol. 22, No. 14 (17 April 2016): pp. 1-31.
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Abstract
Persistent underperformance in long-term economic growth remains a critical policy concern for many developing economies. This paper undertakes a review of three conventional analytical tools—cross-country growth regressions, growth accounting, and international benchmarking—arguing that their aggregated nature and structural assumptions often fail to identify economy-specific, binding growth constraints. As an alternative, it advances the Growth Diagnostics framework pioneered by Hausmann, Rodrik, and Velasco, which employs decision-tree logic to systematically isolate the most restrictive bottlenecks to private investment and entrepreneurial activity. The study synthesizes evidence from World Bank applications and country case studies (e.g., Mongolia, Brazil, Pakistan, and Nicaragua) to illustrate the framework’s practical relevance and limitations, including judgment-dependence, non-linear interactions among constraints, and static bias. Applying these insights to developing countries economic context and their Development Plan targets, the paper contends that adopting a Growth Diagnostics approach would enable policymakers to prioritize structural reforms, strengthen property rights and governance, improve financial intermediation, and more efficiently allocate scarce resources. Such targeted interventions are essential to achieving the high economic growth objective and fostering sustained, inclusive development.
Item Type: | MPRA Paper |
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Original Title: | آسیب شناسی رشد اقتصادی |
English Title: | Diagnosing Binding Constraints on Economic Growth |
Language: | Persian |
Keywords: | Economic growth diagnostics; Binding constraints; Decision-tree framework; Growth accounting; Cross-country regressions; Structural reforms; Investment climate; |
Subjects: | E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E65 - Studies of Particular Policy Episodes O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Empirical Studies of Economic Growth ; Aggregate Productivity ; Cross-Country Output Convergence |
Item ID: | 126195 |
Depositing User: | Prof. seyed hossein mirjalili |
Date Deposited: | 17 Sep 2025 16:37 |
Last Modified: | 17 Sep 2025 18:05 |
References: | 1. Hausmann, Ricardo, Bailey Klinger and Rodrigo Wagner,(2008),”Doing Growth Diagnostics in practice: A Mind book”, Center for International Development at Harvard University, working paper No.177. 2. Hausmann, Ricardo, Dani and Velasco, Andres, (2005)”Growth Roderick Diagnostics”, In: growth lab.cid.harvard.edu/files/growth-diagnostics.pdf 3. Herald Habermann and Pablo padrutt,(2011),”Growth Diagnostics: Strengths and weaknesses of a creative analytical framework to Identify economic growth constraints in developing countries”, journal of knowledge Management, Economics and information Technology,issue7 4. Rodrik, Danni, (2010),”Diagnostics before prescription”, journal of Economic perspectives, Vol.24, No.3, summer. 5. Rodrik, Danni,(2013),”The why and how of growth Diagnostics”, Institute for advanced study, in: www. sss. ias. Edu / files / pdfs /presentations/growth-diagnostics.pdf. 6. World Bank,(2012),”Growth Diagnostic studies”,PREM Network, in:Worldbank.org/website/External/Extaboutus/organization. 7. Elena Ianchovichina and Sudarashan Goopta,(2007),”Growth Diagnostics for a Resource-Rich Transition Economy: The case of Mongolia”, policy Research working paper, No. 4396,World Bank Publication. 8. Aghion, philippe.&Durlauf,Steven,(2009),”From Growth Theory to Policy Design”, Commission on Growth and Development, Working Paper No.57, International Bank for Reconstruction and Development, World Bank, Washington DC. 9. Felipe,J.& Usui,N.(2008), “Rethinking the Growth Diagnostics Approach: Questions from the practitioners” ,ADB Economics Working Paper series,No.132, Asian Development Bank. |
URI: | https://mpra.ub.uni-muenchen.de/id/eprint/126195 |