Title: Industry Level Analysis : The Way to Identify the Binding Constraints To Economic Growth
Abstract: No AccessPolicy Research Working Papers25 Jun 2013Industry Level Analysis : The Way to Identify the Binding Constraints To Economic GrowthAuthors/Editors: Vincent PalmadeVincent Palmadehttps://doi.org/10.1596/1813-9450-3551SectionsAboutPDF (0.4 MB) ToolsAdd to favoritesDownload CitationsTrack Citations ShareFacebookTwitterLinked In Abstract:There are many economic diagnostic tools available which are trying to identify the constraints to economic growth in a given country. Unfortunately these tools tend to provide inconclusive and often conflicting answers as to what the most important constraints are. Even more worrisome, they tend to overlook the many industry specific policy and enforcement issues which, collectively, have been found to be the most important constraints to economic growth. This is the key finding from more than ten years of economic research by the McKinsey Global Institute (MGI). The MGI country studies have been uniquely based on the in-depth analysis of a representative sample of industries where clear causality links could be established between factors in the firms' external environment and their behavior, in particular through the analysis of competitive dynamics. They showed in details how industry specific policy and enforcement issues were the main constraints to private investment and fair competition – the two drivers of productivity and thus economic growth. This finding implies that governments and international financial institutions should rely much more on in-depth industry level analysis to uncover product market competition issues and set reform priorities. These analyses should include the often overlooked but critically important domestic service sectors such as retail and housing construction. Previous bookNext book FiguresreferencesRecommendeddetailsCited byValue Chain Intervention StrategiesState-Building Taxation for Developing Countries: Principles for ReformDevelopment Policy Review, Vol.28, No.19 December 2009Beyond ideological cleavages: A unifying framework for industrial policies and other public interventionsEconomic Systems, Vol.33, No.4Out of stock or just in time? Doha and the liberalization of distribution servicesClusters for Competitiveness: A Practical Guide and Policy Implications for Developing Cluster InitiativesSSRN Electronic JournalOverview of the Political and Economic Arguments in Favor of and Against the Establishment of a NOCSSRN Electronic JournalViet Nam: Recent Economic Developments and Key ChallengesSSRN Electronic JournalThe dynamics of manufacturing competitiveness in South Asia: An analysis through export dataJournal of Asian Economics, Vol.17, No.4Growth and the Investment Climate: Progress and Challenges for Asian EconomiesIDS Bulletin, Vol.37, No.3Dynamics of Manufacturing Competitiveness in South Asia: Analysis through Export DataSSRN Electronic Journal View Published: March 2005 Copyright & Permissions Related RegionsEast Asia & PacificLatin America & CaribbeanSouth AsiaRelated CountriesCzech RepublicIndiaRelated TopicsEducationFinance and Financial Sector DevelopmentMacroeconomics and Economic GrowthPrivate Sector DevelopmentSocial Protections and Labor KeywordsAGRICULTURECAPITALCAPITAL MARKETSCOMPETITIONECONOMIC GROWTHECONOMIC PERFORMANCEECONOMIC RESEARCHECONOMIC SECTORSGDPGROWTH POTENTIALINVESTMENTLOW TARIFFSMACROECONOMIC POLICIESMACROECONOMIC STABILIZATIONNATURAL MONOPOLIESPRODUCTIVITYTAXESTRADETRADE BARRIERSVALUE PDF DownloadLoading ...