The determinants of economic success: luck and policy

W. Easterly, L. Pritchett

    Research output: Contribution to journalArticlepeer-review

    Abstract

    A recent World Bank study shows that countries' economic growth rates are highly volatile due to the presence of "luck' - shocks such as shifts in terms of trade. But effective short- and long-term policies can help offset the effects of bad luck and create economic success stories. Good long-term sectoral and macroeconomic policies that lead to high educational enrollment rates, deep financial markets, increased equipment investment, stable and undistorted prices, and realistic interest rates are the only convincing foundation for future growth. -from Authors

    Original languageEnglish (US)
    Pages (from-to)38-41
    Number of pages4
    JournalFinance & Development
    Volume30
    Issue number4
    StatePublished - 1993

    ASJC Scopus subject areas

    • Geography, Planning and Development
    • Development
    • Finance

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