IV Convergence and Divergence in Developing Countries
Author:
International Monetary Fund. Research Dept.
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Abstract

During the past two decades there have been wide disparities in the pace of economic growth among developing countries. Differences in the external environment account for some of these divergences, but domestic policies have been decisive. There is considerable evidence that macroeconomic stability and the removal of structural distortions boost growth by improving the incentives to save and invest, as well as the efficiency of investment. As more countries implement stabilization and structural reform policies, the medium-term prospects for the developing world appear brighter than they have been for some time.

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