DDI_WLD_1988_RMFG_v02_M 2011-01-20 NADA DDI Document - Version 02 - (04/27/21) This version is identical to DDI_WLD_1988_RMFG_v01_M but country field has been updated to capture all the countries covered by survey. Version 01 (January 2011) The Role of Macroeconomic Factors in Growth 1961-1988 RMFG 1996-1988 WLD_1988_RMFG_v01_M Stanley Fischer NADA Development Research Group Macroeconomics - Indicators Data used in Stan Fischer's paper, The Role of Macroeconomic Factors in Growth (JME, 1993). Using a regression analog of growth accounting, the author presents cross-sectional and panel regressions showing that growth is negatively associated with inflation, large budget deficits, and distorted foreign exchange markets. Supplementary evidence suggests that the causation runs from macroeconomic policy to growth. The framework makes it possible to identify the channels of these effects: inflation reduces growth by reducing investment and productivity growth; budget deficits also reduce both capital accumulation and productivity growth. Examination of exceptional cases shows that while low inflation and small deficits are not necessary for high growth even over long periods, high inflation is not consistent with sustained growth. Afghanistan Angola Argentina Burundi Benin Burkina Faso Bahrain Bahamas, The Bolivia Brazil Barbados Botswana Chile China Cameroon Congo, Dem. Rep. Congo, Rep. Colombia Comoros Costa Rica Cyprus Dominican Republic Algeria Ecuador Egypt, Arab Rep. Spain Ethiopia Fiji Gabon Ghana Guinea Gambia, The Guinea-Bissau Greece Grenada Guatemala Guyana Hong Kong SAR, China Honduras Haiti Hungary Indonesia India Iran, Islamic Rep. Iraq Iceland Israel Jamaica Jordan Japan Kenya Korea, Rep. Kuwait Lao PDR Lebanon Liberia Libya Sri Lanka Lesotho Morocco Madagascar Maldives Mexico Mali Malta Myanmar Mozambique Mauritania Mauritius Malawi Malaysia Niger Nigeria Nicaragua Nepal New Zealand Oman Pakistan Panama Peru Philippines Papua New Guinea Poland Portugal Paraguay Romania Rwanda Saudi Arabia Sudan Senegal Singapore Sierra Leone El Salvador Somalia Suriname Eswatini Syrian Arab Republic Chad Togo Thailand Trinidad and Tobago Tunisia Turkiye Taiwan, China Tanzania Uganda Uruguay Venezuela, RB Vietnam Yemen, Rep. Zambia Zimbabwe Yugoslavia Fed. Rep. - Afghanistan - Angola - Argentina - Burundi - Benin - Bangladesh - Bahrain - Bahamas - Belize - Bolivia - Brazil - Barbados - Myanmar - Botswana - Central African Rep - Chile - China - Cote d'Ivoire - Cameroon - Congo - Colombia - Comoros - Costa Rica - Cyprus - Dominican Republic - Algeria - Ecuador - Egypt - Spain - Ethiopia - Fiji - Gabon - Ghana - Guinea - Gambia, The - Guinea-Bissau - Greece - Grenada - Guatemala - Guyana - Hong Kong - Honduras - Haiti - Hungary - Burkina Faso - Indonesia - India - Iran - Iraq - Iceland - Israel - Jamaica - Jordan - Japan - Kenya - Kampuchea - South Korea - Kuwait - Laos - Lebanon - Liberia - Libya - St. Lucia - Sri Lanka - Lesotho - Morocco - Madagascar - Maldives - Mexico - Mali - Malta - Mozambique - Mauritania - Mauritius - Malawi - Malaysia - Niger - Nigeria - Nicaragua - Nepal - New Zealand - Taiwan - Oman - Pakistan - Panama - Peru - Philippines - Papua New Guinea - Poland - Portugal - Paraguay - Romania - Rwanda - Saudi Arabia - Sudan - Senegal - Singapore - Sierra Leone - El Salvador - Somalia - Suriname - Swaziland - Syria - Chad - Togo - Thailand - Trinidad and Tobago - Tunisia - Turkey - Tanzania - Uganda - Uruguay - Venezuela - Viet Nam - Western Samoa - South Yemen - North Yemen - Yugoslavia - South - Zaire - Zambia - Zimbabwe Aggregate data [agg] The dataset includes the following indicators: - Growth rate of total GDP - Capital stock growth rate - Labor force growth rate - Growth rate of total human capital - Years of educational attainment of the labor force - Solow productivity residual - Human capital stock - Inflation rate - Inflation uncertainty - Budget surplus or deficit - Ratio of liquid liabilities to GDP - Rate of change of terms of trade - Trade openness - Black market exchange rate premium Other [oth] Use of the dataset must be acknowledged using a citation which would include: - the Identification of the Primary Investigator - the title of the survey (including acronym and year of implementation) - the survey reference number - the source and date of download Example: Stanley Fischer. The Role of Macroeconomic Factors in Growth (RMFG) 1961-1988. Ref. WLD_1988_RMFG_v01_M. Dataset downloaded from http://microdata.worldbank.org on [date] The user of the data acknowledges that the original collector of the data, the authorized distributor of the data, and the relevant funding agency bear no responsibility for use of the data or for interpretations or inferences based upon such uses. FISCHDEM Data used in Stan Fischer's paper, The Role of Macroeconomic Factors in Growth (JME, 1993). 3864 18 CONUM CONUM CONUM CONUM CONUM 3864 1 137 68.507 39.829 CONUM is the country number, corresponding to the country code. COCODE COCODE COCODE COCODE COCODE 3864 "AFG" "AGO" "ARE" "ARG" "AUS" "AUT" "BDI" "BEL" "BEN" "BGD" "BHR" "BHS" "BOL" "BRA" "BRB" "BUR" "BWA" "CAF" "CAN" "CHE" "CHL" "CHN" "CIV" "CMR" "COG" "COL" "COM" "CPV" "CRI" "CYP" "DEU" "DMA" "DNK" "DOM" "DZA" "ECU" "EGY" "ESP" "ETH" "FIN" "FJI" "FRA" "GAB" "GBR" "GHA" "GIN" "GMB" "GNB" "GRC" "GRD" "GTM" "GUY" "HKG" "HND" "HTI" "HUN" "HVO" "IDN" "IND" "IRL" "IRN" "IRQ" "ISL" "ISR" "ITA" "JAM" "JOR" "JPN" "KEN" "KOR" "KWT" "LBR" "LCA" "LKA" "LSO" "LUX" "MAR" "MDG" "MEX" "MLI" "MLT" "MOZ" "MRT" "MUS" "MWI" "MYS" "NER" "NGA" "NIC" "NLD" "NOR" "NPL" "NZL" "OAN" "OMN" "PAK" "PAN" "PER" "PHL" "PNG" "POL" "PRT" "PRY" "RWA" "SAU" "SDN" "SEN" "SGP" "SLB" "SLE" "SLV" "SOM" "SUR" "SWE" "SWZ" "SYC" "SYR" "TCD" "TGO" "THA" "TON" "TTO" "TUN" "TUR" "TZA" "UGA" "URY" "USA" "VCT" "VEN" "VUT" "WSM" "YEM" "YUG" "ZAF" "ZAR" "ZMB" "ZWE" COCODE is the country abbreviation, same as in WDR 1991 dataset. YEAR YEAR YEAR YEAR YEAR 3864 1 28 14.5 8.079 YEAR is the year, 1961-1988. REGION REGION REGION REGION REGION 3864 1 EMENA 2 LACAR 3 SASIA 4 EASIA 5 AFRICA 6 OECD REGION is region code. ZPGDP ZPGDP ZPGDP ZPGDP ZPGDP 3864 1 3316 1438.932 1045.116 ZPGDP is growth rate of total GDP from Heston-Summers. ZKAP ZKAP ZKAP ZKAP ZKAP 3864 1 36 12.762 6.415 ZKAP is capital stock growth rate from the WDR 1991. ZLAB ZLAB ZLAB ZLAB ZLAB 3052 812 -0.0743 0.139 0.0209 0.012 ZLAB is labor force growth rate from WDR 1991. ZBARROHK ZBARROHK ZBARROHK ZBARROHK ZBARROHK 2319 1545 -0.325 1.414 0.0518 0.07 ZBARROHK is the growth rate of total human capital=BARROHK*LABOR. (Note that BARROHK and LABOR are not included separately here) BARROHK is the average years of educational attainment of the labor force as calculated by Barro and Lee. ESOLOW ESOLOW ESOLOW ESOLOW ESOLOW 2367 1497 -0.619 0.46 -0.00196 0.058 ESOLOW is the Solow productivity residual ESOLOW=ZPGDP-0.4*ZKAP-0.6*ZLAB BHKAVG BHKAVG BHKAVG BHKAVG BHKAVG 2650 1214 0.159 11.853 4.904 2.994 BHKAVG is the average Barro-Lee human capital stock (average years of educational attainment of the labor force. INFLAT INFLAT INFLAT INFLAT INFLAT 2058 1806 -0.172 4.775 0.145 0.264 INFLAT is the inflation rate, computed from the CPI series in International Financial Statistics, with GDP deflator data from the World Bank for the Central African Republic, Malawi, and Chad. SMAPI SMAPI SMAPI SMAPI SMAPI 1704 2160 0.00156 1.683 0.0768 0.122 SMAPI is a time series estimate of inflation uncertainty, calculated as the standard deviation of the inflation rate for overlapping seven-year periods. SINFLAT SINFLAT SINFLAT SINFLAT SINFLAT 2029 1835 1.245 0.14 0.183 SINFLAT is the standard deviation of the inflation rate over all the observations on inflation for a given country. SURRAT SURRAT SURRAT SURRAT SURRAT 716 3148 -0.285 0.104 -0.0414 0.0487 SURRAT is the budget surplus (+) or deficit (-) provided by William Easterly of the World Bank. LLY LLY LLY LLY LLY 2912 952 0.1 1.5 0.365 0.237 LLY is the average ratio of liquid liabilities to GDP from Levine-Zervos. ZTOT1 ZTOT1 ZTOT1 ZTOT1 ZTOT1 1756 2108 -1.006 0.971 -0.00586 0.15 ZTOT1 is the rate of change of terms of trade (TOT1) from the WDR dataset. OPENTARA OPENTARA OPENTARA OPENTARA OPENTARA 1790 2074 0.875 35.717 6.441 4.104 OPENTARA is the average openness, computed as OPENC * ln (1+TARIFF), where OPENC is X+M/GDP and TARIFF is average tariffs, both from WDR EXCHPREM EXCHPREM EXCHPREM EXCHPREM EXCHPREM 2207 1657 -0.852 6.216 0.323 0.531 EXCHPREM is log (1+BLACK), where BLACK is the average black market exchange rate premium from WDR.