Publication Type

Journal Article

Version

Preprint

Publication Date

4-2004

Abstract

This paper critically reexamines the belief, currently gathering strength in the literature, that economic development depends on good luck rather than on good policy, and that Prometheus is unchained by chance. While it is impossible to disprove the role of luck in growth, we argue that luck is endogenous, and good luck is a function of good policy. Luck favours those who strive. Again contrary to common belief, we show that resurgent Asian economies have endured more, not less, than their fair share of economic volatility. They learned their lessons by success and failures, and luck is endogenous through learning-by-investing.

Keywords

Asia, Luck, Growth, Learning-by-investing

Discipline

Asian Studies | Growth and Development

Research Areas

Macroeconomics

Publication

Journal of Policy Modeling

Volume

26

Issue

3

First Page

373

Last Page

385

ISSN

0161-8938

Identifier

10.1016/j.jpolmod.2004.02.003

Publisher

Elsevier

Copyright Owner and License

Authors

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

Additional URL

http://doi.org/10.1016/j.jpolmod.2004.02.003

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