This article attempts to encourage the revitalization of growth in the Arab world by addressing the following questions: why has growth been so low, specifically in comparison to the high performers of East Asia, and why has it been so erratic and unstable? The author estimates two growth models...

High instability and low growth characterize the macroeconomic performance of most developing countries. Inadequate policies are often to blame. This paper documents the empirical regularities that characterize the relationship between macroeconomic-financial policies, instability, and growth...