A Conceptual and Methodological Study
From the document:
A renewed interest in explaining growth in the Caribbean countries is motivated by the somewhat slow but uneven performance in the past decade: per capita GDP gaps in Caribbean countries have widened in relation to the United States, whereas standard theories would predict convergence.
This study (a) examines the question using methods developed in the recent growth literature on economic growth and (b) characterizes the main elements of growth by estimating empirical models. On the basis of time-series and comparative static estimations, the study finds that the combination of domestic policies, high indebtedness, and outside shocks (e.g., oil price changes or main trading partners' tourism demand) explain well the gap in growth of the six IDB member countries (The Bahamas, Barbados, Guyana, Jamaica, Suriname, and Trinidad and Tobago).
Moreover, the study shows evidence that the member countries' small size and their synchronicity with the U.S. business cycle influenced growth performance. In general, the influence of good policies on growth is still evident from the analysis.
(IDB Working Paper Series ; 595)
Related content
CARICOM • Fiscal Policy • Debt
Fiscal Sustainability and Debt in Small Open Economies - An Application to the Caribbean
Published by the Caribbean Centre for Money and Finance
Economic Analysis • Economic Growth • Debt
Economic Survey of the Caribbean 2015: Balancing economic recovery and high debt in the Caribbean
Studies and Perspectives – ECLAC Subregional Headquarters for The Caribbean
Economic Growth • Economic Policy • International Trade
World Economic Situation and Prospects 2016
Update as of mid-2016
Saint Vincent and the Grenadines • Financing • Debt
Government of St. Vincent and the Grenadines Medium Term Debt Strategy 2015-2018
Prepared by the Debt Management Unit
Youth • Employment • Labour Markets
Global Employment Trends for Youth 2015
Scaling up investments in decent jobs for youth