The Quality of Growth

We use latent class analysis to categorize development experiences. This technique allows us to consider a broad range of country characteristics including per capita income growth, health, inequality, environmental performance, and life satisfaction. We show that each of these indicators is important in explaining the classifications based on the quality of growth. We then predict membership in growth quality classes using many of the standard determinants of growth. We find that they are related to growth quality in a non-linear way and that population growth is more consistently related to our broader measure of growth quality than is typically found in standard growth regressions.

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