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- All LAC Argentina Bolivia Brazil Chile Colombia Costa Rica Ecuador Mexico Peru Venezuela Source: WDI and Authors' calculations Figure I.3a: Growth Rates of GDP per Capita, by Country, 1961-2000 South Cone Countries -6 -4 -2 0 2 4 6 8
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Alonso-Borrego, C. and Arellano, M. (1996). Symmetrically Normalised Instrumental Variable Estimation Using Panel Data. CEMFI Working Paper No. 9612.
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- Argentina Peru Chile Mexico Brazil Colombia Percentage points Actual Change Projected Change Transitional Convergence Cyclical Reversion Structural Reforms Stabilization Policies External Conditions Figure II.2: Explaining Changes in Growth Between the 1970s - 1980s Selected Latin American Countries -7 -6 -5 -4 -3 -2 -1 0 1 2 3
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Attanasio, O. P., L. Picci, and A. Scorcu (2000). “Saving, Growth, and Investment: A Macroeconomic Analysis Using a Panel of Countries.†Review of Economics and Statistics 82(2): 182-211.
Author’s calculations using data from Caprio and Klingebiel (1999), and Kaminsky and Reinhart (1998). External Conditions Terms of Trade Shocks Log difference of the terms of trade. Terms of trade are defined as customary.
- Author’s calculations with data from World Development Network (2002) and The World Bank (2002).
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- Authors' construction using data from Nehru and Dareshwar (1993) updated with The World Bank (2002), and unemployment rates from ILO, IMF, ECLA, and various Central Banks and National Statistical Agencies. Labor Force, total, adjusted for human capital.
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- Authors' construction using data from The World Bank (2002). Unemployment Rates Ratio of the number of people actually working to the economically active population, taken from several labor surveys. Several sources: ILO, IMF, ECLA, and various Central Banks and National Statistical Agencies. Employment, total. Number of people actually working, taken from several labor surveys. Several sources: ILO, IMF, ECLA, and various Central Banks and National Statistical Agencies. Average Worked Hours Average numbers of hours actually worked by worker. Data was extrapolated for some periods, on the basis of unemployment rates and per capita GDP series. Authors' construction using data from ILO, Angus Maddison, and various Central Banks and National Statistical Agencies. Average Years of Schooling Average number of years of schooling in the population.
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- Authors' construction using Nehru and Dareshwar (1993) and The World Bank (2002). Labor Force, Total Working-age population (aged 15 to 64). Series were smoothed when unjustified jumps were found.
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- Authors' construction using Summers and Heston (1991) and The World Bank (2002).
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- Authors' construction using Summers and Heston (1991) and The World Bank (2002). 3. Growth Determinants Output Growth See above.
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- Authors' construction using Summers and Heston (1991) and The World Bank (2002). Cyclical Reversion Initial Output Gap Difference between the log of actual GDP and (the log of) potential (trend) GDP around the start of the period. In order to decompose the log of GDP, the Baxter-King filter is used. Author’s calculations. Structural Policies and Institutions Education Ratio of total secondary enrollment, regardless of age, to the population of the age group that officially corresponds to that level of education.
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- Authors' construction using The World Bank (2002), Barro and Lee (2000), and Psacharopoulos (1994). Employment, total, adjusted for human capital and for average worked hours.
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- Authors' construction using The World Bank (2002), Barro and Lee (2000), Psacharopoulos (1994), ILO, IMF, ECLA, Angus Deaton, and various Central Banks and National Statistical Agencies. Appendix B (cont.) Definitions and Sources of Variables Used in Regression Analysis Variable Definition and Construction Source 2. Saving and Investment Output Growth See above.
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- Average Argentina Bolivia Brazil Chile Colombia Ecuador Paraguay Peru Uruguay Venezuela Growth Rate 1991-99 Projected Growth Rate 2000-10 Figure III.4: Growth Forecasts for Central America and the Caribbean under a Continuous Trend Scenario -4 -3 -2 -1 0 1 2 3 4 5 Costa Rica Dominican Republic El Salvador Haiti Honduras Jamaica Mexico Nicaragua Panama Trinidad &
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Barro, R. J. (2002). “Quantity and Quality of Economic Growth†in Economic Growth: Sources, Trends, and Cycles, edited by N. Loayza and R. Soto. Santiago, Chile: Central Bank of Chile.
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Barros, R. de Paes and C. H. Corseuil (2001). The Impact of Regulations on Brazilian Labor Market Performance. Research Network Working paper #R-427, Latin American Research Network, IADB, October.
Baxter, M. and R.G. King (1999). “Measuring Business Cycles: Approximate Band-Pass Filters for Economic Time Series.†The Review of Economics and Statistics 81, 575-593.
- Beck, Demirguc-Kunt and Levine (2000).
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Bekaert, G., C. Harvey, and C. Lundblad (2001). “Does Financial Liberalization Spur Growth?†National Bureau of Economic Research Working Paper No.W8245.
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Bergoeing, R., P. Kehoe, T. Kehoe, and R. Soto (2002). “A Decade Lost and Found: Mexico and Chile in the 1980s.†Review of Economic Dynamics 5(1): 166-205. 58 Bernanke, B. and R. Gurkaynak (2001). “Is Growth Exogenous? Taking Mankiw, Romer, and Weil Seriously.†National Bureau of Economic Research Working Paper No. W8365.
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- Bolivia Colombia Ecuador Peru Venezuela, RB 1961-70 1971-80 1981-90 1991-00 Source: WDI and Authors' calculations Figure I.3d: Growth Rates of GDP per Capita, by Country, 1961-2000 Caribbean - Continental Countries -6 -4 -2 0 2 4 6 8
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- Calderón and Servén (2003) 121 Countries (21 LAC). 1960-00 (5-year averages) GMM-IV System Estimator (Arellano and Bover, 1995; Blundell and Bond, 1998).
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Calderón, C. and K. Schmidt-Hebbel (2003). “Macroeconomic Policies and Performance in Latin America.†Journal of International Money and Finance 22: 895-923.
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- Calderón, C., N. Loayza, and L. Servén (2004). “Greenfield FDI and Mergers and Acquisitions: Feedback and Macroeconomic Effects.†The World Bank Policy Research Paper 3192, January.
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Campos, N. and J. Nugent (1998). Institutions and Economic Growth in Latin America: Can Human Capital Be a Link? CEPAL Review, 64: 7-27.
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- Central Bank of Chile (2001). Indicadores Económicos y Sociales 1960-2000, Santiago, Chile: Central Bank of Chile.
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- Costa Rica El Salvador Guatemala Honduras Mexico Nicaragua Panama 1961-70 1971-80 1981-90 1991-00 Source: WDI and Authors' calculations Figure I.3f: Growth Rates of GDP per Capita, by Country, 1961-2000 Caribbean - Small Island Countries -6 -4 -2 0 2 4 6 8
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- Cyclical volatility computed from actual values and forecasts of output gap estimates for 2001-2005. Output gap for the 2003-2005 period projected using Consensus Forecasts or IMF forecasts for GDP growth and applying the Baxter-King filter to those forecasts. For 2006-2010 projected using a panel data estimation considering the first lag of the variable and fixed effects for each country.
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- De Gregorio and Lee (1999) 81 Countries (21 LAC). 1965-95 (10 year averages) Panel Data. Seemingly Unrelated Regressions (SUR) and 3SLS.
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- De Gregorio and Lee (2003) 85 Countries (21 LAC). 1970-00 (5-year averages) Three-Stage Least Squares (3SLS) Blyde and Fernández-Arias (2004) 73 Countries (20 LAC). 1970-99 (5-year averages) Panel Data. Instrumental Variables (IV) with Fixed Effects.
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De Gregorio, J. and C. Bravo-Ortega (2002). “The Relative Richness of the Poor? 60 Natural Resources, Human Capital and Economic Growth.†Central Bank of Chile Working Paper Series No. 139.
- De Gregorio, J. and J.-W. Lee (1999). “Economic Growth in Latin America: Sources and Prospects.†Universidad de Chile, Mimeo, December.
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- De Gregorio, J. and J.-W. Lee (2003). “Growth and Adjustment in East Asia and Latin America.†Central Bank of Chile Working Paper 245, December.
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Dohse, D. (1996). “The Transmission of Knowledge Spillovers and its Impact on Regional Economic Growth.†Institut Fur Weltwirtschaft An Der Universitat. Kiel Working Papers No.774: 1-27.
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DTBC-264 Chile’s Free Trade Agreements: How Big is The Deal? Rómulo A. Chumacero, Rodrigo Fuentes y Klaus Schmidt-Hebbel Junio 2004 DTBC-263 Labor Market Rigidity and Structural Shocks: An Open-Economy Approach for International Comparisons ElÃas Albagli, Pablo GarcÃa y Jorge Restrepo Mayo 2004 DTBC-262 Monetarismo más allá del M1A Pablo GarcÃa y Rodrigo O. Valdés Mayo 2004 DTBC-261 Dedollarization, Indexation and Nominalization: The Chilean Experience Luis Oscar Herrera y Rodrigo O. Valdés Mayo 2004 DTBC-260 Forecasting Chilean Industrial Production and Sales with Automated Procedures Rómulo Chumacero Mayo 2004 DTBC-259 Evaluating the Chilean Government’s Debt Denomination ElÃas Albagli Mayo 2004 DTBC-258 Desempleo y Consumo en Chile Claudio Soto Mayo DTBC-257 Función de Ingresos de los Hogares Chilenos: Ciclo de Vida y Persistencia de Shocks en el Tiempo Paulina Granados Z.
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- Easterly (2001). Systemic Banking Crises Number of years in which a country underwent a systemic banking crisis, as a fraction of the number of years in the corresponding period.
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Easterly, W. (1999). “Life During Growth: International Evidence on Quality of Life and Per Capita Income.†World Bank, Policy Research Working Paper 2110.
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Easterly, W. and R. Levine (2002). “Tropics, Germs, and Crops: How Endowments Influence Economic Development.†University of Minnesota. Mimeograph. 61 Economic Commission for Latin America and the Caribbean, Macroeconomic Database, available on line at http://www.eclac.org/estadisticas/.
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- Financial Depth Projected for 2001-2010 using OLS regression models incorporating (linear or quadratic) trends, a convergence effect, and ARMA terms. The inclusion criterion was (i) to increase the fit of equation and (ii) to generate plausible values for the projected variable.
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Fischer, S. (1993). “The Role of Macroeconomic Factors in Growth.†Journal of Monetary Economics 32(3): 485-511.
Gallego, F. and N. Loayza (2002). “The Golden Period for Growth in Chile. Explanations and Forecasts.†in Economic Growth: Sources, Trends, and Cycles, edited by N. Loayza and R. Soto. Santiago, Chile: Central Bank of Chile.
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- Government Burden Projected for 2000-2010 using OLS regression models incorporating (linear or quadratic) trends and ARMA terms. The inclusion criterion was (i) to increase the fit of equation and (ii) to generate plausible values for the projected variable.
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- Government Burden Ratio of government consumption to GDP. The World Bank (2002). Public Infrastructure Telephone mainlines are telephone lines connecting a customer's equipment to the public switched telephone network. Data are presented per 1,000 population for the entire country.
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- Gross Domestic Saving (% of GDP) Ratio of Gross Domestic Saving to GDP. The World Bank (2002).
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- Growth Log difference of real GDP per capita. Authors' construction using Summers and Heston (1991) and The World Bank (2002).
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- Growth rate of GDP per capita 0.0148 0.0263 -0.1073 0.0857 0.0142 0.0224 -0.0784 0.0749 Initial GDP per capita (in logs) 8.1553 0.9871 5.9225 9.8279 8.1058 0.9431 6.1592 9.7251 Initial output gap (in logs) -0.0007 0.0247 -0.1246 0.0668 -0.0034 0.0297 -0.1650 0.0528 Secondary enrollment (in logs) 3.9255 0.6734 1.2042 5.0294 3.9076 0.6753 1.0869 4.9289 Private domestic credit/GDP (in logs) -1.1631 0.9104 -5.6893 0.7345 -1.1528 0.8454 -4.1289 0.7090 Structure-adjusted trade volume/GDP (in logs) 0.0369 0.4455 -1.6896 1.3629 0.0278 0.4472 -1.5450 1.2887 Government consumption /GDP (in logs) -1.9355 0.3703 -3.1305 -0.9681 -1.9374 0.3708 -3.1781 -0.9722 Main telephone lines per capita (in logs) 3.8887 1.8291 -0.1576 6.5271 3.8287 1.8167 -0.2070 6.5244 1st principal component of ICRG indicators 0.5529 1.8510 -3.2562 3.4684 0.5201 1.8291 -3.2562 3.4684 Inflation (in log [100+inf. rate]) 4.7905 0.4047 4.5749 8.7974 4.8142 0.4218 4.6151 7.8395 Std.
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Human Capital Authors' calculations using data from Barro and Lee (2000) and Psacharopoulos (1994) Unemployment Rate National Bureau of Statistics, Venezuela Employment National Bureau of Statistics, Venezuela Worked Hours Splicing using series from Maddison (1995) and authors' estimations using information on unemploment rate and per-capita GDP Capital Share Bernanke and Gurkaynak (2001) Growth Rates Appendix B Definitions and Sources of Variables Used in Regression Analysis Variable Definition and Construction Source 1. Growth Accounting Output Level Ratio of total GDP to total population. GDP is in 1985 PPP-adjusted US$.
- Inflation For countries with inflation targets, central bank targets were used as the projections for the 2006-2010, private forecasts from Consensus Forecasts for the 2004-2005 period, and actual values for the 2000-2003 period.
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- Initial per capita GDP Ratio of total GDP to total population in 2000 from the World Development Indicators . For 2005, projected value using the estimated growth rate during 2001-2005 and the initial per capita GDP in 2000. Estimated growth rates come from the projections of growth determinants for 2001-2005 and the panel data models previously presented.
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- International Labor Organization. “LABORSTAT.†http://laborsta.ilo.org/ International Monetary Fund (2002). World Economic Outlook, Washington, DC.
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King, R. G. and R. Levine (1994). “Finance and Growth: Schumpeter Might Be Right.†Quarterly Journal of Economics 108(3): 717-37 King, R. G. and R. Levine (1994). “Capital Fundamentalism, Economic Development, and Economic Growth.†Carnegie-Rochester Conference Series on Public Policy V. 40: 259-92.
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Levine, R. (1997). “Financial Development and Economic Growth: Views and Agenda.†Journal of Economic Literature 35 (2): 688-726.
Levine, R., N. Loayza, and T. Beck (2000). “Financial Intermediation and Growth: Causality and Causes.†Journal of Monetary Economics 46, No.1: 31-77.
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Loayza, N. (1996). “The Economics of the Informal Sector: A Simple Model and Some Empirical Evidence from Latin America.†Carnegie-Rochester Conference Series on Public Policy 45.
- Loayza, N. and L. Palacios (1997). “Economic Reform and Progress in Latin America and the Caribbean.†World Bank Policy Research Working Paper No. 1829. Washington, D. C.
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Lucas, R. (1988). On the Mechanics of Economic Development. Journal of Monetary Economics 22:3-42.
- Maddison, A. (1995). Monitoring the World Economy: 1820-1992. Development Centre Studies. Paris and Washington, D.C.: Organization for Economic Co-operation and Development.
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Mauro, P. (1995). “Corruption and Growth.†Quarterly Journal of Economics 110: 681-712.
Miller, S. and M. Upadhyay (2000). “The Effects of Openness, Trade Orientation and Human Capital on Total Factor Productivity.†Journal of Development Economics Vol. 63 No. 2: 399423.
Mincer, J. (1981). “Human capital and Economic Growth.†Economics of Education Review 3(3): 195-205.
- Number of people actually working, adjusted for the average years of primary, secondary and tertiary schooling in the population, using the rates of social returns to education calculated by Psacharopoulos (1995), and for the average numbers of hours actually worked.
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Olofsdotter, K. (1998). “Foreign Direct Investment, Country Capabilities and Economic Growth.†Weltwirtschaftliches Archiv Vol. 134 (3).
- Otani, I, and D. Villanueva (1990). “Long-term Growth in Developing Countries and Its Determinants: An Empirical Analysis.†World Development 18(6): 769-83.
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- Physical and Human Capital Domestic Capital Stock (in 1987 US$ dollars) Data until 1990 from Nehru and Dareshwar (1993), updated with WDI data, using perpetual inventory method, and assuming a 4% depreciation rate.
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Pritchett, L. (1996). “Measuring Outward Orientation in LDCs: Can It Be Done?†Journal of Development Economics 49(2):307-35.
- Pritchett, L. (2001). “Where Has All the Education Gone?†World Bank Economic Review, V15, No. 3: 367-391.
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- Projected for 2006-2010 (2005-2010) for countries with available Consensus Forecasts or IMF forecasts for 2004-2005 (2004) using OLS regression models incorporating (linear or quadratic) trends, a convergence term to annual inflation of 3%, and ARMA terms. The inclusion criterion was (i) to increase the fit of equation and (ii) to generate plausible values for the projected variable.
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Psacharopoulos, G. (1994). Returns to Investment in Education: A Global Update. World Development v22, n9: 1325-43 Romer, P. (1989). “Capital Accumulation in the Theory of Long-run Growth.†in Modern Business Cycle Theory, edited by R. Barro. Cambridge, Mass.: Harvard University Press.
- Public Infrastructure Projected for 2003-2010 using OLS regression models incorporating (linear or quadratic) trends, a convergence effect, and ARMA terms. The inclusion criterion was (i) to increase the fit of equation and (ii) to generate plausible values for the projected variable.
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- Real Exchange Rate Overvaluation Projected for 2000-2010 using OLS regression models incorporating (linear or quadratic) trends, the lagged difference between the index and the equilibrium level, and ARMA terms. The inclusion criterion was (i) to increase the fit of equation and (ii) to generate plausible values for the projected variable.
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- Real Exchange Rate Overvaluation Real effective exchange rate, with the level adjusted such that the average for 1976-85 equals Dollar’s (1992) index of overvaluation (based on the ratio of actual to incomeadjusted Summers-Heston purchasing power parity comparisons).
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Shea, J. (1998). “What Do Technology Shocks Do?†National Bureau of Economic Research Macroeconomics Annual 1998, 275-321.
- Source: Authors' calculations External Conditions Countries Structural Policies Stabilization Policies Growth Rate 1991-1999 Potential Change Contributions to Potential Improvement in the Growth Rate Transitional Convergence Source: WDI and Authors' calculations Source: WDI and Authors' calculations Figure I.1: Growth Rates of GDP per Capita, GDP-Weighted Average by Regions, 1961-2000 (constant sample) -4 -2 0 2 4 6 8
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- Source: Authors' calculations Figure I.6: Simple Growth Decomposition Median Country by Decade -2 -1 0 1 2 3 4 5 6 1961-70 1971-80 1981-90 1991-00 GDP growth Labor Capital Total Factor Productivity (TFP 1) Figure I.7: Growth Decomposition Adjusted for Human Capital Median Country by Decade -3 -2 -1 0 1 2 3 4 5 6 1961-70 1971-80 1981-90 1991-00 GDP growth Labor Capital Total Factor Productivity (TFP 2) Figure I.8: Growth Decomposition Adj. for Human Capital and Input Utilization Median Country by Decade -3 -2 -1 0 1 2 3 4 5 6 1961-70 1971-80 1981-90 1991-00 GDP growth Labor Capital Total Factor Productivity (TFP 3) Source: Authors' calculations Source: Authors' calculations Figure II.1: Explaining Changes in Growth Between the 1980s - 1990s Selected Latin American Countries -2 -1 0 1 2 3 4 5 6 7 8
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- Sources GDP Authors' construction using Summers and Heston (1991) and The World Bank (2002).
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- Sources GDP Authors' construction using Summers and Heston (1991) and The World Bank (2002).
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- Sources GDP Authors' construction using Summers and Heston (1991) and The World Bank (2002).
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- Sources GDP Authors' construction using Summers and Heston (1991) and The World Bank (2002).
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- Sources GDP Authors' construction using Summers and Heston (1991) and The World Bank (2002).
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- Sources GDP Authors' construction using Summers and Heston (1991) and The World Bank (2002).
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- Sources: GDP Authors' construction using Summers and Heston (1991) and The World Bank (2002).
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- Sources: GDP Authors' construction using Summers and Heston (1991) and The World Bank (2002).
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- Sources: GDP Authors' construction using Summers and Heston (1991) and The World Bank (2002).
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- Sources: GDP Authors' construction using Summers and Heston (1991) and The World Bank (2002).
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- Sources: GDP Authors' construction using Summers and Heston (1991) and The World Bank (2002).
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- Sources: GDP Authors' construction using Summers and Heston (1991) and The World Bank (2002).
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- Sources: GDP Authors' construction using Summers and Heston (1991) and The World Bank (2002).
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- Sources: GDP Authors' construction using Summers and Heston (1991) and The World Bank (2002).
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- Sources: GDP Authors' construction using Summers and Heston (1991) and The World Bank (2002).
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- Sources: GDP Authors' construction using Summers and Heston (1991) and The World Bank (2002).
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- Sources: GDP Authors' construction using Summers and Heston (1991) and The World Bank (2002).
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- Sources: GDP Authors' construction using Summers and Heston (1991) and The World Bank (2002).
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- Sources: GDP Authors' construction using Summers and Heston (1991) and The World Bank (2002).
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- Sources: GDP Authors' construction using Summers and Heston (1991) and The World Bank (2002).
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Summers, R. and A. Heston (1991). “The Penn World Table (Mark 5): An Expanded Set of International Comparisons, 1950-1988.†Quarterly Journal of Economics 106(2): 327-68.
Systemic Banking Crises Computed for 2000-2003 using the criterion defined in Caprio and Klingebiel (1999), and Kaminsky and Reinhart (1998). For 2004-2010 projected using a panel data model including the level of real exchange rate overvaluation and lagged presence of crisis as explanatory variables. The inclusion criterion was (i) to increase the fit of equation and (ii) to generate plausible values for the projected variable.
- Terms of trade shocks Computed using the projected of the level of terms of trade for 2000-2010 using OLS regression models incorporating ARMA terms. The inclusion criterion was (i) to increase the fit of equation and (ii) to generate plausible values for the projected variable. Initial Output Gap and Cyclical Volatility Initial output gap computed using the Baxter-King filter.
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- The social returns to education are obtained from Psacharopoulos (1994). The categories and their respective returns are: No Education (benchmark) = 1, Incomplete Primary Education = 1.68, Complete Primary Education = 2.69, Incomplete Secondary Education = 3.91, Complete Secondary Education = 5.53, Incomplete College Education = 5.87, Complete College Education = 8.80. 2. Labor Adjusted for Human Capital (HL) = Labor * H. 3. Labor Adjusted for Human Capital and Employment = HL * (1- Unemployment rate) * Participation Rate * Worked Hours. 4. Physical Capital Adjusted for Utilization = Physical Capital * (1-Unemployment Rate).
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- The social returns to education are obtained from Psacharopoulos (1994). The categories and their respective returns are: No Education (benchmark) = 1, Incomplete Primary Education = 1.68, Complete Primary Education = 2.69, Incomplete Secondary Education = 3.91, Complete Secondary Education = 5.53, Incomplete College Education = 5.87, Complete College Education = 8.80. 2. Labor Adjusted for Human Capital (HL) = Labor * H. 3. Labor Adjusted for Human Capital and Employment = HL * (1- Unemployment rate) * Participation Rate * Worked Hours. 4. Physical Capital Adjusted for Utilization = Physical Capital * (1-Unemployment Rate).
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- The social returns to education are obtained from Psacharopoulos (1994). The categories and their respective returns are: No Education (benchmark) = 1, Incomplete Primary Education = 1.68, Complete Primary Education = 2.69, Incomplete Secondary Education = 3.91, Complete Secondary Education = 5.53, Incomplete College Education = 5.87, Complete College Education = 8.80. 2. Labor Adjusted for Human Capital (HL) = Labor * H. 3. Labor Adjusted for Human Capital and Employment = HL * (1- Unemployment rate) * Participation Rate * Worked Hours. 4. Physical Capital Adjusted for Utilization = Physical Capital * (1-Unemployment Rate).
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- The social returns to education are obtained from Psacharopoulos (1994). The categories and their respective returns are: No Education (benchmark) = 1, Incomplete Primary Education = 1.68, Complete Primary Education = 2.69, Incomplete Secondary Education = 3.91, Complete Secondary Education = 5.53, Incomplete College Education = 5.87, Complete College Education = 8.80. 2. Labor Adjusted for Human Capital (HL) = Labor * H. 3. Labor Adjusted for Human Capital and Employment = HL * (1- Unemployment rate) * Participation Rate * Worked Hours. 4. Physical Capital Adjusted for Utilization = Physical Capital * (1-Unemployment Rate).
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- The social returns to education are obtained from Psacharopoulos (1994). The categories and their respective returns are: No Education (benchmark) = 1, Incomplete Primary Education = 1.68, Complete Primary Education = 2.69, Incomplete Secondary Education = 3.91, Complete Secondary Education = 5.53, Incomplete College Education = 5.87, Complete College Education = 8.80. 2. Labor Adjusted for Human Capital (HL) = Labor * H. 3. Labor Adjusted for Human Capital and Employment = HL * (1- Unemployment rate) * Participation Rate * Worked Hours. 4. Physical Capital Adjusted for Utilization = Physical Capital * (1-Unemployment Rate).
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- The social returns to education are obtained from Psacharopoulos (1994). The categories and their respective returns are: No Education (benchmark) = 1, Incomplete Primary Education = 1.68, Complete Primary Education = 2.69, Incomplete Secondary Education = 3.91, Complete Secondary Education = 5.53, Incomplete College Education = 5.87, Complete College Education = 8.80. 2. Labor Adjusted for Human Capital (HL) = Labor * H. 3. Labor Adjusted for Human Capital and Employment = HL * (1- Unemployment rate) * Participation Rate * Worked Hours. 4. Physical Capital Adjusted for Utilization = Physical Capital * (1-Unemployment Rate).
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- The social returns to education are obtained from Psacharopoulos (1994). The categories and their respective returns are: No Education (benchmark) = 1, Incomplete Primary Education = 1.68, Complete Primary Education = 2.69, Incomplete Secondary Education = 3.91, Complete Secondary Education = 5.53, Incomplete College Education = 5.87, Complete College Education = 8.80. 2. Labor Adjusted for Human Capital (HL) = Labor * H. 3. Labor Adjusted for Human Capital and Employment = HL * (1- Unemployment rate) * Participation Rate * Worked Hours. 4. Physical Capital Adjusted for Utilization = Physical Capital * (1-Unemployment Rate).
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- The social returns to education are obtained from Psacharopoulos (1994). The categories and their respective returns are: No Education (benchmark) = 1, Incomplete Primary Education = 1.68, Complete Primary Education = 2.69, Incomplete Secondary Education = 3.91, Complete Secondary Education = 5.53, Incomplete College Education = 5.87, Complete College Education = 8.80. 2. Labor Adjusted for Human Capital (HL) = Labor * H. 3. Labor Adjusted for Human Capital and Employment = HL * (1- Unemployment rate) * Participation Rate * Worked Hours. 4. Physical Capital Adjusted for Utilization = Physical Capital * (1-Unemployment Rate).
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- The social returns to education are obtained from Psacharopoulos (1994). The categories and their respective returns are: No Education (benchmark) = 1, Incomplete Primary Education = 1.68, Complete Primary Education = 2.69, Incomplete Secondary Education = 3.91, Complete Secondary Education = 5.53, Incomplete College Education = 5.87, Complete College Education = 8.80. 2. Labor Adjusted for Human Capital (HL) = Labor * H. 3. Labor Adjusted for Human Capital and Employment = HL * (1- Unemployment rate) * Participation Rate * Worked Hours. 4. Physical Capital Adjusted for Utilization = Physical Capital * (1-Unemployment Rate).
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- The social returns to education are obtained from Psacharopoulos (1994). The categories and their respective returns are: No Education (benchmark) = 1, Incomplete Primary Education = 1.68, Complete Primary Education = 2.69, Incomplete Secondary Education = 3.91, Complete Secondary Education = 5.53, Incomplete College Education = 5.87, Complete College Education = 8.80. 2. Labor Adjusted for Human Capital (HL) = Labor * H. 3. Labor Adjusted for Human Capital and Employment = HL * (1- Unemployment rate) * Participation Rate * Worked Hours. 4. Physical Capital Adjusted for Utilization = Physical Capital * (1-Unemployment Rate).
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- The social returns to education are obtained from Psacharopoulos (1994). The categories and their respective returns are: No Education (benchmark) = 1, Incomplete Primary Education = 1.68, Complete Primary Education = 2.69, Incomplete Secondary Education = 3.91, Complete Secondary Education = 5.53, Incomplete College Education = 5.87, Complete College Education = 8.80. 2. Labor Adjusted for Human Capital (HL) = Labor * H. 3. Labor Adjusted for Human Capital and Employment = HL * (1- Unemployment rate) * Participation Rate * Worked Hours. 4. Physical Capital Adjusted for Utilization = Physical Capital * (1-Unemployment Rate).
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- The social returns to education are obtained from Psacharopoulos (1994). The categories and their respective returns are: No Education (benchmark) = 1, Incomplete Primary Education = 1.68, Complete Primary Education = 2.69, Incomplete Secondary Education = 3.91, Complete Secondary Education = 5.53, Incomplete College Education = 5.87, Complete College Education = 8.80. 2. Labor Adjusted for Human Capital (HL) = Labor * H. 3. Labor Adjusted for Human Capital and Employment = HL * (1- Unemployment rate) * Participation Rate * Worked Hours. 4. Physical Capital Adjusted for Utilization = Physical Capital * (1-Unemployment Rate).
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- The social returns to education are obtained from Psacharopoulos (1994). The categories and their respective returns are: No Education (benchmark) = 1, Incomplete Primary Education = 1.68, Complete Primary Education = 2.69, Incomplete Secondary Education = 3.91, Complete Secondary Education = 5.53, Incomplete College Education = 5.87, Complete College Education = 8.80. 2. Labor Adjusted for Human Capital (HL) = Labor * H. 3. Labor Adjusted for Human Capital and Employment = HL * (1- Unemployment rate) * Participation Rate * Worked Hours. 4. Physical Capital Adjusted for Utilization = Physical Capital * (1-Unemployment Rate).
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- The social returns to education are obtained from Psacharopoulos (1994). The categories and their respective returns are: No Education (benchmark) = 1, Incomplete Primary Education = 1.68, Complete Primary Education = 2.69, Incomplete Secondary Education = 3.91, Complete Secondary Education = 5.53, Incomplete College Education = 5.87, Complete College Education = 8.80. 2. Labor Adjusted for Human Capital (HL) = Labor * H. 3. Labor Adjusted for Human Capital and Employment = HL * (1- Unemployment rate) * Participation Rate * Worked Hours. 4. Physical Capital Adjusted for Utilization = Physical Capital * (1-Unemployment Rate).
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- The social returns to education are obtained from Psacharopoulos (1994). The categories and their respective returns are: No Education (benchmark) = 1, Incomplete Primary Education = 1.68, Complete Primary Education = 2.69, Incomplete Secondary Education = 3.91, Complete Secondary Education = 5.53, Incomplete College Education = 5.87, Complete College Education = 8.80. 2. Labor Adjusted for Human Capital (HL) = Labor * H. 3. Labor Adjusted for Human Capital and Employment = HL * (1- Unemployment rate) * Participation Rate * Worked Hours. 4. Physical Capital Adjusted for Utilization = Physical Capital * (1-Unemployment Rate).
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- The social returns to education are obtained from Psacharopoulos (1994). The categories and their respective returns are: No Education (benchmark) = 1, Incomplete Primary Education = 1.68, Complete Primary Education = 2.69, Incomplete Secondary Education = 3.91, Complete Secondary Education = 5.53, Incomplete College Education = 5.87, Complete College Education = 8.80. 2. Labor Adjusted for Human Capital (HL) = Labor * H. 3. Labor Adjusted for Human Capital and Employment = HL * (1- Unemployment rate) * Participation Rate * Worked Hours. 4. Physical Capital Adjusted for Utilization = Physical Capital * (1-Unemployment Rate).
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- The social returns to education are obtained from Psacharopoulos (1994). The categories and their respective returns are: No Education (benchmark) = 1, Incomplete Primary Education = 1.68, Complete Primary Education = 2.69, Incomplete Secondary Education = 3.91, Complete Secondary Education = 5.53, Incomplete College Education = 5.87, Complete College Education = 8.80. 2. Labor Adjusted for Human Capital (HL) = Labor * H. 3. Labor Adjusted for Human Capital and Employment = HL * (1- Unemployment rate) * Participation Rate * Worked Hours. 4. Physical Capital Adjusted for Utilization = Physical Capital * (1-Unemployment Rate).
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- The social returns to education are obtained from Psacharopoulos (1994). The categories and their respective returns are: No Education (benchmark) = 1, Incomplete Primary Education = 1.68, Complete Primary Education = 2.69, Incomplete Secondary Education = 3.91, Complete Secondary Education = 5.53, Incomplete College Education = 5.87, Complete College Education = 8.80. 2. Labor Adjusted for Human Capital (HL) = Labor * H. 3. Labor Adjusted for Human Capital and Employment = HL * (1- Unemployment rate) * Participation Rate * Worked Hours. 4. Physical Capital Adjusted for Utilization = Physical Capital * (1-Unemployment Rate).
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- The social returns to education are obtained from Psacharopoulos (1994). The categories and their respective returns are: No Education (benchmark) = 1, Incomplete Primary Education = 1.68, Complete Primary Education = 2.69, Incomplete Secondary Education = 3.91, Complete Secondary Education = 5.53, Incomplete College Education = 5.87, Complete College Education = 8.80. 2. Labor Adjusted for Human Capital (HL) = Labor * H. 3. Labor Adjusted for Human Capital and Employment = HL * (1- Unemployment rate) * Participation Rate * Worked Hours. 4. Physical Capital Adjusted for Utilization = Physical Capital * (1-Unemployment Rate).
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- The social returns to education are obtained from Psacharopoulos (1994). The categories and their respective returns are: No Education (benchmark) = 1, Incomplete Primary Education = 1.68, Complete Primary Education = 2.69, Incomplete Secondary Education = 3.91, Complete Secondary Education = 5.53, Incomplete College Education = 5.87, Complete College Education = 8.80. 2. Labor Adjusted for Human Capital (HL) = Labor * H. 3. Labor Adjusted for Human Capital and Employment = HL * (1- Unemployment rate) * Participation Rate * Worked Hours. 4. Physical Capital Adjusted for Utilization = Physical Capital * (1-Unemployment Rate).
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- The World Bank (2000) World Development Indicators. Period-specific Shifts Time dummy variables. Authors’ construction.
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- The World Bank (2002). Cyclical Volatility Standard deviation of the output gap for the period. Author’s calculations.
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- TIMSS (2000). The TIMSS 1999 International Database. Boston, Mass: Boston University.
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- Trade Openness Projected for 2001-2010 using OLS regression models incorporating (linear or quadratic) trends, a convergence effect, and ARMA terms. The inclusion criterion was (i) to increase the fit of equation and (ii) to generate plausible values for the projected variable.
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- Trade Openness Residual of a regression of the log of the ratio of exports and imports (in 1995 US$) to GDP (in 1995 US$), on the logs of area and population, and dummies for oil exporting and for landlocked countries.
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- Transitional Convergence Initial GDP Per Capita Initial value of ratio of total GDP to total population. GDP is in 1985 PPP-adjusted US$.
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Turnovsky, S. (2000). “Growth in an Open Economy: Some Recent Developmentsâ€. Manuscript, University of Washington.
- Working-age population (aged 15 to 64), adjusted for the average years of primary, secondary and tertiary schooling in the population, using the rates of social returns to education calculated by Psacharopoulos (1995).
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- Working-Age Population WDI Capital Authors' construction using Nehru and Dareshwar (1993) and The World Bank (2002).
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- Working-Age Population WDI Capital Authors' construction using Nehru and Dareshwar (1993) and The World Bank (2002).
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- Working-Age Population WDI Capital Authors' construction using Nehru and Dareshwar (1993) and The World Bank (2002).
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- Working-Age Population WDI Capital Authors' construction using Nehru and Dareshwar (1993) and The World Bank (2002).
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- Working-Age Population WDI Capital Authors' construction using Nehru and Dareshwar (1993) and The World Bank (2002).
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- Working-Age Population WDI Capital Authors' construction using Nehru and Dareshwar (1993) and The World Bank (2002).
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- Working-Age Population WDI Capital Authors' construction using Nehru and Dareshwar (1993) and The World Bank (2002).
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- Working-Age Population WDI Capital Authors' construction using Nehru and Dareshwar (1993) and The World Bank (2002).
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- Working-Age Population WDI Capital Authors' construction using Nehru and Dareshwar (1993) and The World Bank (2002).
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- Working-Age Population WDI Capital Authors' construction using Nehru and Dareshwar (1993) and The World Bank (2002).
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- Working-Age Population WDI Capital Authors' construction using Nehru and Dareshwar (1993) and The World Bank (2002).
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- Working-Age Population WDI Capital Authors' construction using Nehru and Dareshwar (1993) and The World Bank (2002).
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- Working-Age Population WDI Capital Authors' construction using Nehru and Dareshwar (1993) and The World Bank (2002).
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- Working-Age Population WDI Capital Authors' construction using Nehru and Dareshwar (1993) and The World Bank (2002).
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- Working-Age Population WDI Capital Authors' construction using Nehru and Dareshwar (1993) and The World Bank (2002).
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- Working-Age Population WDI Capital Authors' construction using Nehru and Dareshwar (1993) and The World Bank (2002).
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- Working-Age Population WDI Capital Authors' construction using Nehru and Dareshwar (1993) and The World Bank (2002).
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- Working-Age Population WDI Capital Authors' construction using Nehru and Dareshwar (1993) and The World Bank (2002).
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- Working-Age Population WDI Capital Authors' construction using Nehru and Dareshwar (1993) and The World Bank (2002).
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- World Bank (1997). World Development Indicators, Washington, DC: The World Bank.
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World Bank (2000). World Development Indicators, Washington, DC: The World Bank.
- World Bank (2001). World Development Indicators, Washington, DC: The World Bank.
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- World Bank (2002). Global Economic Prospects. Washington, D.C. 65 Young, A. (1989). Hong Kong and the Art of Landing on One’s Feet: A Case Study of a Structurally Flexible Economy, Ph.D. dissertation, Fletcher School, Tufts University, May.
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Young, A. (1995). “The Tyranny of Numbers: Confronting the Statistical Realities of the East Asian Growth Experience.†Quarterly Journal of Economics 110(3): 641-80.