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A New Look at the Determinants of Growth in Asian Countries
Author: Mr. Manuk Ghazanchyan, Ms. Janet Gale Stotsky, and Qianqian Zhang
Series:
IMF Working Papers
Volume/Issue:
Volume 2015: Issue 195
Language:
English
Publication Date:
03 Sep 2015
DOI:
https://doi.org/10.5089/9781513524535.001
ISBN:
9781513524535
ISSN:
1018-5941
Pages:
33
Keywords:
WP; center; regime; regime dummy; financial risk; stability requirement; Asia; growth; exchange rate regimes; investment; capital account openness; exchange rate volatility; exchange rate uncertainty; excessive exchange rate flexibility; exchange rate framework; exchange rate appreciation; Exchange rate arrangements; Capital account; Exchange rate flexibility; Estimation techniques; Public investment spending; Asia and Pacific; East Asia
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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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.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund