The IMF Working Papers series is designed to make IMF staff research available to a wide audience. Almost 300 Working Papers are released each year, covering a wide range of theoretical and analytical topics, including balance of payments, monetary and fiscal issues, global liquidity, and national and international economic developments.
Manuk Ghazanchyan, Janet Stotsky, and Qianqian Zhang
INTERNATIONAL MONETARY FUND
This study examines the drivers of growth in Asian countries, with focus on the role of investment,
the exchange rate regime, financial risk, and capital account openness. We use a panel data set of a
sample of Asian countries over the period 1980 to 2012. Our results indicate that private and
public investments are strong drivers of growth, while more limited evidence is found that reduced
financial risk and higher foreign direct investment support growth. The exchange rate regime does
not appear to be a strongly significant determinant of growth, but some specifications suggest that
more flexible regimes are beneficial in this respect. Financial crises have a stronger dampening
effect on growth in countries with more open capital accounts.