Belarusian Economic Research and Outreach Center

Productivity or the External Environment: Which is More Important for Growth in Emerging Markets?

The goal of this research is to assess and compare growth promoting effects associated with productivity determinants and external environment determinants in 34 emerging market economies.

The study is based on growth regression research design. Two different modelling frameworks – panel OLS and Arellano-Bond GMM estimator – are exploited. The study operates with a unique dataset, covering 34 emerging market economies over 11 years (2007-2017). 

Findings: Both productivity and external environment determinants are meaningful for growth in emerging market. However, external environment determinants dominate in explaining short-term growth, while productivity determinants are more important for long-run sustainable growth.

The paper was published in the Entrepreneurial Business and Economics Review. SEE PUBLICATION >