Economic growth is the foundation for social and economic development: it creates jobs, generates income opportunities, and helps reduce poverty. When it is inclusive and sustained, growth can also strengthen political and social stability. So it’s not surprising that growth is at the top of most governments’ agendas. The World Bank’s Long-Term Growth Model (LTGM) is a simple, transparent, and easy-to-use suite of tools to help policy makers assess what growth paths are feasible in their country—and how growth can be accelerated and sustained.
The Long-Term Growth Model: Fundamentals, Extensions, and Applications is a new book that explains the model and its applications. The book also extends the basic model to analyze how public investment affects growth, the determinants of Total Factor Productivity (TFP), and the evolution of growth in resource-rich economies. It includes practical applications of the LTGM in a wide variety of contexts and countries—from fast-growing East Asian economies to countries recovering from devastating civil war.
Find out more about the Long-Term Growth Model at https://www.worldbank.org/LTGM.
Cite as: Loayza, Norman V. and Steven Pennings. 2022. The Long Term Growth Model: Fundamentals, Extensions, and Applications. Washington, D.C.: World Bank Group