Economic growth in middle-income countries: a theoretical and empirical approach to development in turbulent times

"This book develops a theoretical framework unlike the conventional neoclassical paradigm for the analysis of growth and deploys analytical data to understand the main policy issues affecting developing countries, with particular attention to countries which, after having a spurt of growth, have been unable to maintain the momentum of their economies. One of the guiding ideas of the book is that each one of these countries has its own middle-income trap. The book focuses the discussion on growth and development around the specific characteristics of these countries and the constraints they face to achieve rapid growth. The book offers the building blocks for an integrated approach to development economics from the perspective of developing economies themselves. It looks at real-life constraints to growth and development, such as institutions, access to financing, macroeconomic policies, the role of foreign direct investment, the pros and cons of trade and financial opening to the rest of the world, education and health issues, sustainable development in a world experiencing global warming, productive development policies, income distribution, and poverty. Further, it offers simple growth models that go beyond the conventional neoclassical model to help the reader understand the unique challenges facing developing countries. While recognizing that growth is necessary to achieve development, the book argues that there are other variables that can be just as important to wellbeing and pays close attention to issues such as health, education, and political freedom. The book summarizes the issues that are crucial for countries to be able to accelerate their growth rates and to achieve development and makes a theoretical contribution to the study of economic development, particularly growth models appropriate to middle-income countries. Thus, it will be a useful guide for researchers and academics in the field of development economics and other social sciences dealing with developing countries"--

Cover -- Half Title -- Series Page -- Title Page -- Copyright Page -- Dedication -- Table of Contents -- List of figures -- List of tables -- List of boxes and appendices -- Preface -- Chapter 1: Economic development: The central issue of our times -- A Introduction -- B The countries that are included -- C A brief summary of the contents of the book -- Notes -- Chapter 2: Growth and development since World War II -- A Introduction -- B Growth performance during the Golden Age: 1950-1980 -- C World economic growth in 1980-2019 -- D Much lower poverty, but worsening income distribution -- E Health and education -- F Conclusion: A bleak picture for developing countries -- Notes -- Chapter 3: An introduction to modeling growth in developing economies -- A Introduction -- B Are developing economies different? -- 1 The structure of the output and foreign trade -- 2 The heterogeneity of the labor force -- 3 Underdeveloped capital market -- 4 Currency for raising funds by governments and firms -- 5 International capital flows -- 6 Consequences for growth modeling -- C Harrod-Domar (HD) -- D An AK model with technological change in imported goods -- E A macroeconomic interpretation of Hausmann, Rodrik, and Velasco (HRV, 2008) -- F A multisector model of a small open economy -- G A simple empirical model -- H Recapitulating -- Notes -- Chapter 4: Institutions and development -- A Introduction -- B Markets and states -- C Changing institutions -- D The Worldwide Governance Indicators -- E Social capital -- F Concluding remarks -- Notes -- Chapter 5: Saving, investment, and financial markets -- A Introduction -- B The accounting relations between saving and investment -- C Causation -- D Some data on fixed investment and saving (domestic and foreign) -- E Financial constraints on investment -- F Capital markets and the saving-investment nexus.