NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Growth Strategies

Dani Rodrik

NBER Working Paper No. 10050
Issued in October 2003
NBER Program(s):   EFG   IFM   ITI

This is an attempt to derive broad, strategic lessons from the diverse experience with economic growth in last fifty years. The paper revolves around two key arguments. One is that neoclassical economic analysis is a lot more flexible than its practitioners in the policy domain have generally given it credit. In particular, first-order economic principles protection of property rights, market-based competition, appropriate incentives, sound money, and so on do not map into unique policy packages. Reformers have substantial room for creatively packaging these principles into institutional designs that are sensitive to local opportunities and constraints. Successful countries are those that have used this room wisely. The second argument is that igniting economic growth and sustaining it are somewhat different enterprises. The former generally requires a limited range of (often unconventional) reforms that need not overly tax the institutional capacity of the economy. The latter challenge is in many ways harder, as it requires constructing over the longer term a sound institutional underpinning to endow the economy with resilience to shocks and maintain productive dynamism. Ignoring the distinction between these two tasks leaves reformers saddled with impossibly ambitious, undifferentiated, and impractical policy agendas.

download in pdf format
   (562 K)

email paper

This paper is available as PDF (562 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w10050

Published: Rodrik, Dani, 2005. "Growth Strategies," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 14, pages 967-1014 Elsevier.

Users who downloaded this paper also downloaded these:
Sala-i-Martin w6252 I Just Ran Four Million Regressions
Maria Milesi-Ferrett and Razin w5467 Sustainability of Persistent Current Account Deficits
Hausman, Pritchett, and Rodrik w10566 Growth Accelerations
Rodrik w7540 Institutions for High-Quality Growth: What They are and How to Acquire Them
Rodrik, Subramanian, and Trebbi w9305 Institutions Rule: The Primacy of Institutions over Geography and Integration in Economic Development
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us