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This paper argues that the unprecedented acceleration of growth in the developing world in the new millennium in comparison with advanced economies is due not so much to improvements in underlying fundamentals as to exceptionally favourable global economic conditions, shaped mainly by...
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decoupling in recent years. We estimate a correlated unobserved components model that allows for persistent and cyclical time … loosened while the co-movement with other variables than GDP has become tighter. The decoupling is of permanent nature. The …
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