2023/06/19 by Lucio Baccaro, Sinisa Hadziabdic · 56 citations
Economics, Econometrics and Finance · #Consumption (sociology) #Devaluation #Econometrics #Economic Theory and Policy #Economic geography #Economics #Exchange rate #Fiscal Policy and Economic Growth #Government (linguistics) #International economics #Investment (military) #Latin Americans #Macroeconomics #Monetary Policy and Economic Impact #Operationalization #Political science
paper · pdf · doi:10.1007/s11135-023-01685-w
published in Quality & Quantity 58(2), 1325-1360 (Springer Science+Business Media)
openalex publication_date 2023/06/19 · openalex created_date 2025/10/10 · openalex updated_date 2026/08/01
Abstract We introduce a novel approach to operationalizing growth models. Drawing on the most recent release of OECD Input–Output Tables, we compute the import-adjusted growth contributions of consumption, investment, government expenditures, and exports for sixty-six countries in the years 1995–2007 and 2009–2018, covering not only advanced Western economies but also Central and Eastern European, South-East Asian, and Latin American countries. We find that most are export-led or domestic demand-led and other forms of growth are rare. Our results differ from other classifications in that they reveal important geographical variation as well as temporal change. In a subsequent step, we illustrate the utility of the methodology by investigating the link between real exchange rate devaluation and export-led growth, a contentious issue in the existing literature. For pre-crisis advanced Western economies, we find an association between the two variables, which is statistically significant only when our new indicator is used.