Archive for March 3rd, 2014

Developing Country Lessons for Advanced Economy Growth

March 3, 2014

The tide has turned and how. After decades of lecturing the developing world, time for developed world to get some advice.

Anusha Chari and Peter Blair Henry point to the importance of discipline for advanced economic policy guys. They should learn these lessons from the developing world:

From 1980 to 1992, emerging and developing countries grew by 3.4 percent per year. Their annual rate of growth increased to 5.4 percent between 1993 and 2012. No such increase occurred for advanced nations, whose average growth from 1980-2012 was roughly constant (excluding the impact of the 2008-09 Recession). Developing nations turned themselves around by embracing discipline—sustained commitment to a pragmatic and flexible growth strategy. Three illustrations of discipline through the lens of trade, fiscal, and debt reforms in the developing world offer relevant, practical lessons for recovery in advanced economies and continued catch-up growth in developing nations.

Nice bit..

Did removing small-scale reservations in India work?

March 3, 2014

Leslie Martin, Shanthi Nataraj, and Ann Harrison look at this policy change in the 1990s.

Large number of products were reserved for Small scale sector in India. This was resreserved in 1990s. What was the impact of this policy change?

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