Drivers of growth and development
It seems that the global economy is slowing down, but what would drive economic growth?
There are many drivers of growth and development and the figure above illustrates a few. For topic 3 we limit the discussion to three parts and examine human capital, infrastructure and openness as drivers of growth and development. The background is module 2 in the ITRISA file, but I am also recommending some additional reading:
- Munnell: Infrastructure investment and economic growth.
- Canning & Pedroni: The effect of infrastructure on long-run economic growth.
- Barro: Human capital and growth.
- Romer: Human capital and growth: Theory and evidence.
- Baldwin: Openness and growth: What is the empirical relationship?
- Baldwin: Trade and industrialisation after globalisation’s second unbundling.
Your assignment is three fold:
- Prepare for class by doing the background reading.
- Three groups have to make presentations on a driver of growth: One on infrastructure, one on human capital, one on openness.
- In each group one person has to write a post for this blog. The topic for this week is:
A Spanish proverb says: ‘The economy only grows at night, when the politicians are sleeping’. Can we leave the drivers of growth to the market, or should the state take the lead to ensure economic growth and development?