## Growth Determinants Revisited

_IMF Working Papers, December 1, 2009_

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## Bibliographic details
- Authors: Charalambos G Tsangarides, Alin T Mirestean
- Published: December 1, 2009
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451874136.001

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### Summary
- The paper revisits the cross-country growth empirics debate using a novel Limited Information Bayesian Model Averaging framework to address model uncertainty in the context of a dynamic growth model in panel data with endogenous regressors.
- Once model uncertainty is accounted for there is strong evidence that initial income, investment, life expectancy, and population growth are robustly correlated with economic growth.
- The authors also find evidence that debt, openness, and inflation are robust growth determinants.
- The set of robust growth determinants found in this paper differs from those identified by other studies that incorporate model uncertainty but ignore dynamics and/or endogeneity.
- The findings underscore the importance of accounting for model uncertainty and endogeneity in the investigation of growth determinants.

### Methodology
- Framework used: Limited Information Bayesian Model Averaging.
- Context: dynamic growth model in panel data with endogenous regressors.
- Purpose: to address model uncertainty while explicitly accounting for dynamics and endogeneity.

### Key empirical findings
- Robustly correlated with economic growth:
  - initial income
  - investment
  - life expectancy
  - population growth
- Additional robust determinants identified:
  - debt
  - openness
  - inflation
- Comparative result:
  - The identified robust determinants differ from those in studies that ignore dynamics and/or endogeneity even when they incorporate model uncertainty.

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/growth-determinants-revisited-23426_