This paper presents a growth diagnostic exercise for Peru. It notes that although Peru has recently enjoyed high rates of economic growth, this growth is actually a recovery from a significant and sustained growth collapse that began in the 1970s, caused by a decline in export earnings due to...

This paper presents theory and evidence on the relationship between inequality and institutional quality. We propose a model in which the two dynamically reinforce each other and set out to test this relationship with a broad array of institutional measures. We establish double causality between...

Poorer countries have a much smaller public sector and correspondingly a smaller tax burden than richer countries, yet, their economic performance has not been necessarily better. Using a simple model, this paper suggests that the growth and welfare effects of taxation are mediated through...

This paper applies new techniques and metrics to analyze Ecuador's past record of and future opportunities for structural transformation. Ecuador's export dynamics and the emergence of new export activities have been the historical drivers of the country's growth, but recently Ecuador's export...

Paraguay's growth history is characterized by prolonged periods of stagnation, interrupted by a few small recessions and growth accelerations. These dynamics reveal that growth in Paraguay has been dependent on latching on to particular export goods enjoying favorable external conditions, rather...

This document is an input to the IDB country strategy with Belize for the 2008-2012 period. In this study the Growth Diagnostic Model (GDM) is followed with the aim of identifying the binding constraints to Belize's growth. The constrained are defined as those constraints whose removal would...

This paper studies the joint effect of economic and political inequalities on redistributive taxation and institutional quality. The theoretical model suggests that income inequality, coupled with political bias in favor of the rich, decreases redistribution and lowers institutional quality. The...

Towards a Sustainable and Efficient State: The Development Agenda of Belize represents a tangible expression of the Inter-American Development Bank's commitment to generating knowledge as part of its assistance to its borrowing member countries and illustrates the Bank's willingness to accompany...

Why are growth rates in Latin America so disappointing? This book reviews the results of an ambitious research project to determine the binding constraints to growth, that is, the barrier whose removal would yield the greatest benefit in terms of growth. Included are case studies from seven...