Abstract
This thesis delves into the various factors influencing economic growth, aiming to provide valuable insights for policymakers. It comprises four chapters, each exploring different aspects of growth using accessible methods and empirical data. This summary offers a non-technical overview and potential future directions for each chapter.
In Chapter 2, I challenge the traditional view that productivity growth follows an exponential pattern. By examining data from 53 countries, the results reveal that high-income countries may exhibit an additive growth pattern, contrary to the well-established exponential assumption. However, limited evidence of additive growth is found for middle-income countries. Future research could explore the hypothesis of a productivity function evolving over time from exponential to linear by considering time-varying parameters.
Chapter 3 introduces a multi-sector, multi-country model to disentangle growth spillovers within and between countries, demonstrating how domestic and external policies influence growth. We propose a novel econometric approach that allows for time-varying spillovers, challenging standard literature. By understanding these growth spillovers, policymakers can better target their efforts to enhance economic performance. Further research could delve deeper to generate sector-specific spillover effects.
The last two chapters focus on Peru. In Chapter 4, we investigate the impact of removing bureaucratic barriers on firm productivity. A legislative change in 2013 empowered the Peruvian competition authority to eliminate these barriers nationwide. The study reveals that this removal led to a substantial 10 percent boost in productivity for affected firms. This finding is particularly relevant for developing countries, as it underscores the importance of reducing bureaucratic obstacles to foster economic growth. Future analyses could explore the impact of competition on other relevant variables, such as employment or wages.
Chapter 5 examines the effects of natural disasters on food prices in Peru. We demonstrate that when disasters like heavy rain or drought occur, food prices tend to rise. Interestingly, this increase is driven more by declines in production rather than changes in consumer demand, challenging some existing theories about price reactions during crises.
Throughout the thesis, I emphasize the need for sophisticated analysis to understand the complexities of economic growth. By employing various empirical methods, this research aims to equip policymakers with the tools necessary to design effective economic policies. Several chapters have been published in reputable academic journals, highlighting their relevance and contribution to the field of economic growth research. Overall, the work underscores the intricate relationship between policies, productivity, and external factors in shaping economic outcomes.
Original language | English |
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Qualification | PhD |
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Award date | 17 Dec 2024 |
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Publication status | Published - 17 Dec 2024 |