A Quality of Growth Index for Developing Countries : A Proposal

Author/Editor:

Montfort Mlachila ; Rene Tapsoba ; Sampawende J Tapsoba

Publication Date:

September 16, 2014

Electronic Access:

Free Full Text. Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper proposes a new quality of growth index (QGI) for developing countries. The index encompasses both the intrinsic nature and social dimensions of growth, and is computed for over 90 countries for the period 1990-2011. The approach is premised on the fact that not all growth is created equal in terms of social outcomes, and that it does matter how one reaches from one level of income to another for various theoretical and empirical reasons. The paper finds that the quality of growth has been improving in the vast majority of developing countries over the past two decades, although the rate of convergence is relatively slow. At the same time, there are considerable cross-country variations across income levels and regions. Finally, emprirical investigations point to the fact that main factors of the quality of growth are political stability, public pro-poor spending, macroeconomic stability, financial development, institutional quality and external factors such as FDI.

Series:

Working Paper No. 14/172

Subject:

English

Publication Date:

September 16, 2014

ISBN/ISSN:

9781498379274/1018-5941

Stock No:

WPIEA2014172

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

33

Please address any questions about this title to publications@imf.org