Determinants of Economic Growth: A Bayesian Panel Data Approach

By Enrique Moral-Benito. Review of Economics and Statistics, 2009

335 citations recorded by the source corpus.

Abstract Model uncertainty hampers consensus on the key determinants of economic growth. Some recent cross-country cross-sectional analyses have employed Bayesian model averaging to tackle the issue of model uncertainty. This paper extends that approach to panel data models with country-specific fixed effects in order to simultaneously address model uncertainty and endogeneity issues. The empirical findings suggest that in a panel setting, the most robust growth determinants are the price of investment goods, distance to major world cities, and political rights.

Subfields: Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/5bb9f0f2671c680a44f633715dc698783a281626

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

Citations in the corpus

Cross‐Country Determinants of Early‐Stage Necessity and Opportunity‐Motivated Entrepreneurship: Accounting for Model Uncertainty (2018, positive): “This can be clearly seen in the related cross-country literature on economic growth where more than 140 variables have been theoretically identified and found to be correlated with growth rates by different studies (Moral-Benito 2010).”
Model Averaging and Its Use in Economics (2017, methodology): “Moral-Benito (2012) considers such a dynamic panel model within the BMA approach by combining the likelihood function discussed in Alvarez and Arellano (2003) with the unit information g-prior.”
Robust FDI determinants: Bayesian Model Averaging in the presence of selection bias (2012, neutral): “Previous approaches to resolving endogeneity and model uncertainty include Tsangarides (2004), Chen, Mirestean, and Tsangarides (2009), Mirestean and Tsangarides (2009), as well as Moral-Benito (2009).”
Shrinkage Estimation of Dynamic Panel Data Models with Interactive Fixed Effects (2016, positive): “For panel data, Islam (1995) employs country fixed effect models and Moral-Benito (2012) uses a Bayesian model averaging approach.”
Weighted‐Average Least Squares (WALS): A Survey (2016, methodology): “…using spatial filtering; Koop et al. (2012), Karl and Lenkoski (2012), and Lenkoski et al. (2013) developed BMA methodologies to jointly address model uncertainty and endogeneity; and Chen et al. (2009), Moral-Benito (2012), and McCormick et al. (2012) proposed BMA estimators for panel data models.”
Does Trust Promote Growth (2013, background): “This approach has been recently generalized to panel data setting to explicitly account for unobserved heterogeneity among countries (Benito, 2011).”
Growth slowdowns and the middle-income trap (2013, background): “Moral-Benito, E., 2012b, “Model Averaging in Economics: An Overview,” Banco de España Working Paper No. 1123 (Madrid: Banco de España).”
The impact of renewable energy consumption and environmental sustainability on economic growth in Africa (2021, methodology): “Furthermore, adopting a panel data model with country-specific fixed effects, Moral-Benito (2009) found that the key determinants of growth include the price of investment goods, distance to major world cities, and political rights.”
Cross-Country Heterogeneity in Intertemporal Substitution (2015, methodology): “For applications of BMA in economics, see, for instance, Fernandez et al. (2001); Ciccone & Jarocinski (2010); Moral-Benito (2012).”