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The Growth Comeback in Developing Economies: A New Hope or Back to the Future?

Author

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  • Mr. John C Bluedorn
  • Rupa Duttagupta
  • Mr. Jaime Guajardo
  • Miss Nkunde Mwase

Abstract

Growth takeoffs in developing economies have rebounded in the past two decades. Although recent takeoffs have lasted longer than takeoffs before the 1990s, a key question is whether they could unravel like some did in the past. This paper finds that recent takeoffs are associated with stronger economic conditions, such as lower post-takeoff debt and inflation levels; more competitive real exchange rates; and better structural reforms and institutions. The chances of starting a takeoff in the 2000s was triple that before the 1990s, with domestic conditions accounting for most of the increase. The findings suggest that if today’s dynamic developing economies sustain their improved policies; they are more likely to stay on course compared to many of their predecessors.

Suggested Citation

  • Mr. John C Bluedorn & Rupa Duttagupta & Mr. Jaime Guajardo & Miss Nkunde Mwase, 2013. "The Growth Comeback in Developing Economies: A New Hope or Back to the Future?," IMF Working Papers 2013/132, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2013/132
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    1. Abiad, Abdul & Bluedorn, John & Guajardo, Jaime & Topalova, Petia, 2015. "The Rising Resilience of Emerging Market and Developing Economies," World Development, Elsevier, vol. 72(C), pages 1-26.
    2. Mr. Alexander Culiuc, 2020. "Real Exchange Rate Overshooting in Large Depreciations: Determinants and Consequences," IMF Working Papers 2020/060, International Monetary Fund.
    3. Domínguez, Rafael & Olivié, Iliana, 2014. "Retos para la cooperación al desarrollo en el post-2015 /Challenges for Development Cooperation in the Post-2015," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 32, pages 995-1020, Septiembr.

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