A New Look at the Determinants of Growth in Asian Countries

By Manuk Ghazanchyan, Janet Gale Stotsky, Qianqian Zhang

September 3, 2015

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Format: Chicago

Manuk Ghazanchyan, Janet Gale Stotsky, and Qianqian Zhang. A New Look at the Determinants of Growth in Asian Countries, (USA: International Monetary Fund, 2015) accessed November 23, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

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.

Subject: Balance of payments, Capital account, Econometric analysis, Estimation techniques, Exchange rate arrangements, Exchange rate flexibility, Expenditure, Foreign exchange, Public investment spending

Keywords: Asia, Asia and Pacific, Capital account, Capital account openness, Center, East Asia, Estimation techniques, Excessive exchange rate flexibility, Exchange rate appreciation, Exchange rate arrangements, Exchange rate flexibility, Exchange rate framework, Exchange rate regimes, Exchange rate uncertainty, Exchange rate volatility, Financial risk, Growth, Investment, Public investment spending, Regime, Regime dummy, Stability requirement, WP

Publication Details

Pages:

33
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2015/195
Stock No:

WPIEA2015195
ISBN:

9781513524535
ISSN:

1018-5941

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