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This paper examines determinants of economic growth in South East Asia during the first decade of the third millennium -- the 2000s. Building on the growth model initially developed by Loayza et al. (2005), and augmented by Araujo et al. (2014), estimates are obtained for the impact that transitional convergence, structural reforms, stabilization policies, and external conditions had on economic growth in the South East Asian region during the 2000s. The most important driver of economic growth was transitional convergence, accounting for about one half of the region's growth. Improvements in structural reforms and favorable external conditions accounted for about one quarter of growth. Stabilization policies had a negligible impact.

Determinants of Economic Growth in South East Asia: An Analysis for the First Decade of the Third Millennium