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Economic Development: Evidence from Directed Acyclic Graphs
Author(s) -
Bessler David A.,
Loper Nathan
Publication year - 2001
Publication title -
the manchester school
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.361
H-Index - 42
eISSN - 1467-9957
pISSN - 1463-6786
DOI - 10.1111/1467-9957.00258
Subject(s) - openness to experience , economics , natural resource , productivity , directed acyclic graph , government (linguistics) , life expectancy , index (typography) , macroeconomics , biology , mathematics , psychology , social psychology , ecology , linguistics , philosophy , population , demography , algorithm , sociology , world wide web , computer science
We use directed acyclic graphs to study post‐1970 cross‐section data from 79 world economies and a subset of 59 less developed economies. Openness to trade, government savings and natural resource exports are direct causes of GDP growth rate. Openness to trade and government savings contribute positively and natural resource exports contributes negatively to growth rate in GDP. An institutional quality index, agricultural productivity, life expectancy, initial GDP and a tropical climate dummy are related to but are not direct causes of GDP growth rate in one or more versions of the models uncovered. Implications on modeling are explored.