The post-war growth experience of developing countries is characterised by three main features. Firstly, enormous divergence between the best and worst performers. Secondly, low persistence in growth rates across time, and finally a general decline in the average growth rate across all...

The dynamic responses of a developing economy to a variety of policy and external shocks are studied using an empirical macroeconomic model which embodies rational expectations, perfect capital mobility, and import rationing. These features, which are relatively new in developing-country...