Thinking Aloud: Volume III, Issue 3: August 1, 2016
The August, 2016 issue of Thinking Aloud focuses on ‘dynamics of economic growth’. The first article titled “Transitions between growth episodes: Do institutions matter and do some institutions matter more?” investigates the role of economic and political institutions in determining the likelihood of a country transitioning from one growth episode to another. The article, using a cross-country panel data for 125 countries over the period between 1984 and 2010, finds that, while better economic and political institutions matter in taking a country from growth collapses to stable growth, economic institutions matter more than the political institutions for switching from stable growth to rapid growth. The second article “Dynamics of economic growth in Bangladesh” explores the major determinants of the real GDP growth of Bangladesh. Using a time series analysis over the sample period from 1972 to 2015, this article investigates the impacts of trade policies, fiscal policies, FDI, interest rate, inflation, infant mortality rate, enrolment in secondary education, infrastructure and institution on GDP growth of Bangladesh. Analysis shows that, further economic growth acceleration in Bangladesh will require reforms in economic policies and institutions, investment in infrastructure, and making most of the demographic dividend through investment in public health, education, and human capital development. In this issue, SANEM interviews Dr. Faisal Ahmed, the Senior Economic Advisor to the Governor of Bangladesh Bank, where he talks on growth performance, prospects and challenges for Bangladesh. Finally, the fourth page covers a call for papers and participation at the Second SANEM Annual Economists’ Conference on “Managing Growth for Social Inclusion” to be held in February 2017.