Where did all the growth go?
Subtitle: external shocks, social conflict, and growth collapses
By: Dani Rodrik.
Contributors: National Bureau of Economic Research.
Series: NBER working paper series -- working paper 6350; Working paper series (National Bureau of Economic Research) -- working paper no. 6350.
Publisher: National Bureau of Economic Research
Published: 1998
Place of publication: Cambridge, MA
Language: eng
Number of pages: 29
Subjects: Economic development -- Social aspects -- Econometric models.; Social conflict -- Econometric models.; Financial crises -- Social aspects -- Econometric models.
Other titles: External shocks, social conflict, and growth collapses
Description: This paper argues that domestic social conflicts are a key to understanding why growth rates lack persistence and why so many countries have experienced a growth collapse after the mid-1970s. It emphasizes conflicts interact with external shocks on the one hand, and the domestic institutions of conflict-management on the other. Econometric evidence provides support for this hypothesis. Countries that experienced the sharpest drops in growth after 1975 were those with divided societies (as measured by indicators of inequality, ethnic fragmentation, and the like) and with weak institutions of conflict management (proxied by indicators of the quality of governmental institutions, rule of law, democratic rights, and social safety nets).
Notes: "January 1998."

JEL no. O40.

Includes bibliographical references (p. 28-29).

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