Given the importance of economic growth in reducing poverty and improving living standards, understanding the process of economic growth is a key component of the research agenda. What factors and policies drive growth? And what are the consequences of growth for social development, including poverty alleviation and institutional progress?
Understanding growth is crucial to understanding the relative merits of government interventions in international trade, financial markets, health and education, public infrastructure, and governance. Earlier research, based mainly on macroeconomic data, yielded valuable insights on the mechanics of growth and the policies and institutional ingredients that robustly correlate with long-term growth.
Ongoing research seeks to achieve a deeper understanding of the mechanisms that translate policy actions and reforms into growth, and especially of the role of country-specific initial conditions and complementarities among different policies. Methodological approaches range from theoretical work based on analytical models along the lines of the growth literature to empirical work making use of micro and macroeconomic data.
Current research pays specific attention to innovation and technological upgrading, in line with the view that productivity growth is the main driver of long-term growth. Research examines how technological upgrading strategies in developing countries are affected by the policy and institutional environment, and how they shape the link between developed and developing countries’ growth over the short and the long run. Research is also concerned with the long-term growth consequences of fiscal policy, and especially public expenditure composition, and the role of fiscal rules and targets in shaping it.
Publications and Working Papers
Journal articles, book chapters and other publications,
This page lists recent scholarly publications by staff working in the area of Macroeconomics and Growth. Publications are organized by topic and appear in reverse chronological order.
The Policy Research Working Paper Series, below, disseminates findings of work in progress, to encourage the exchange of ideas about development issues. These are official working papers of the World Bank and aare drawn from the World Bank's institutional archives. Each link opens a page with an abstract of the document and several download options. Choose the 'light-weight documents' option for easy download.