(Download) "Sustained Economic Growth: Do Institutions Matter, And Which One Prevails?" by The Cato Journal ~ eBook PDF Kindle ePub Free
eBook details
- Title: Sustained Economic Growth: Do Institutions Matter, And Which One Prevails?
- Author : The Cato Journal
- Release Date : January 22, 2008
- Genre: Politics & Current Events,Books,
- Pages : * pages
- Size : 317 KB
Description
In 1965, the growth rate of per capita GDP in Niger and Nigeria was 2.1 percent and 4.2 percent, respectively, and 2.9 percent in Botswana. From 1966 to 1969, however, Niger and Nigeria recorded a negative growth rate, while Botswana continued to experience a positive growth rate over the same period. In 1990, the growth rate of per capita GDP was 1 percent in Ghana and 5.2 percent in Nigeria. Yet, from 1991 to 1994, the growth rate was negative in Nigeria and positive in Ghana. Why does the trajectory of economic growth episodes differ among countries? In other words, why is economic growth more sustainable in some countries than in others? There are at least two policy-relevant justifications for answering these questions. First, durable poverty reduction requires sustained economic growth. Second, in the absence of sustained growth, policymakers constantly reexamine their policies. In this situation, private investors also continually reexamine their investment projects, which increases the risk of poor economic performance. Thus, policymakers need to identify a framework that allows them to make economic growth sustainable as soon as they succeed in generating it.