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From Growth Theory to Policy Design

Author

Listed:
  • Philippe Aghion
  • Steven Durlauf

Abstract

This paper focuses on how growth theory can guide growth policy design. It first argues that policy matters for growth, in particular when policy variables are interacted with country?specific variables (financial development, institutional environment, technological development, and so forth). Second, it argues that the Schumpeterian paradigm does a better job at delivering policy prescriptions that vary with country characteristics. Third, it discusses the advantages and drawbacks of growth regression analysis. Finally, it briefly describes and then questions the recently proposed 'growth diagnostic' approach.

Suggested Citation

  • Philippe Aghion & Steven Durlauf, 2009. "From Growth Theory to Policy Design," World Bank Publications - Books, The World Bank Group, number 28001.
    • Handle: RePEc:wbk:wbpubs:28001
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    File URL: https://openknowledge.worldbank.org/bitstream/handle/10986/28001/577560NWP0Box353767B01PUBLIC10gcwp057web.pdf?sequence=1
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    Citations

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    Cited by:

    1. Aleknavičiūtė Rasa & Skvarciany Viktorija & Survilaitė Simona, 2016. "The Role of Human Capital for National Innovation Capability in Eu Countries," Economics and Culture, Sciendo, vol. 13(1), pages 114-125, June.
    2. Noel Ihebuzor & Damiete O. Lawrence & Anthony Wakwe Lawrence, 2021. "Policy Coherence and Mandate Overlaps as Sources of Major Challenges in Public Sector Management in Nigeria," International Business Research, Canadian Center of Science and Education, vol. 14(1), pages 1-68, January.
    3. Castañeda, Gonzalo & Chávez-Juárez, Florian & Guerrero, Omar A., 2018. "How do governments determine policy priorities? Studying development strategies through spillover networks," Journal of Economic Behavior & Organization, Elsevier, vol. 154(C), pages 335-361.
    4. Al Raee, Mueid & Ritzen, Jo & Crombrugghe, Denis de, 2017. "Innovation policy & labour productivity growth: Education, research & development, government effectiveness and business policy," MERIT Working Papers 2017-019, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    5. Gregorio Giménez Esteban & Carmen López Pueyo & Jaime Sanaú Villarroya, 2011. "La medición del capital humano de los países de la OCDE," Investigaciones de Economía de la Educación volume 6, in: Antonio Caparrós Ruiz (ed.), Investigaciones de Economía de la Educación 6, edition 1, volume 6, chapter 57, pages 933-952, Asociación de Economía de la Educación.
    6. Harald HABERMANN & 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, ScientificPapers.org, vol. 1(7), pages 1-25, December.
    7. Carmen Camacho & Hannes Tepper, 2023. "Do this or do that? A model to prioritize reforms," PSE Working Papers halshs-04005785, HAL.

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