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Determinants of Economic Growth in the Developing Countries: An Extreme Bounds Analysis

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  • Fatimah Hosseinpour, Mansour Zarra-Nezhad, Sayed Aziz Arman and Ahmad Salahmanesh

    (Khorramshahr University of Marine Science and Technology, Shahid Chamran University)

Abstract

The present study aimed to test the hypothesis of inadequacy of growth theories in developing countries by identifying the robust determinants of economic growth under uncertainty in model selection. The extreme bounds analysis approach was adopted, and nearly 11 million regressions were estimated. Results showed that in developing countries, the behavior of some potential determinants of growth, such as corruption and bureaucracy quality, is against economic growth theories, and some of other variables are weak determinants of growth. The findings also confirmed the power of variables such as investment and trade proxies.

Suggested Citation

  • Fatimah Hosseinpour, Mansour Zarra-Nezhad, Sayed Aziz Arman and Ahmad Salahmanesh, 2019. "Determinants of Economic Growth in the Developing Countries: An Extreme Bounds Analysis," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 44(4), pages 43-67, December.
    • Handle: RePEc:jed:journl:v:44:y:2019:i:4:p:43-67
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    More about this item

    Keywords

    Economic Growth; Extreme Bounds Analysis; Developing Countries;
    All these keywords.

    JEL classification:

    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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