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Sri Lanka’s Sources of Growth, Nombulelo Braiton

Sri Lanka’s Sources of Growth, Nombulelo Braiton
This paper uses the growth accounting framework to assess Sri Lanka's sources of growth. It finds that while labor was the dominant factor contributing to growth in the 1980s, labor's contribution declined over time and was overtaken, to a large extent, by total factor productivity (TFP) and, to a lower extent, by physical and human capital accumulation. A higher growth path over the medium term will depend on securing a stable political and macroeconomic environment; implementing structural reforms necessary to improve productivity and efficiency of investment; attaining fiscal consolidation; and creating space for the private sector
international or intergovernmental publication
Literary Form
non fiction
Main title
Sri Lanka’s Sources of Growth
Nature of contents
Responsibility statement
Nombulelo Braiton
Series statement
IMF Working Papers
Table Of Contents
Contents; I. Introduction; II. Stylized Facts and Dynamics of Growth; Figures; 1. GDP Per Capita; Tables; 1. Human Development Index; 2. Governance Indicators, 1996-2006; 2. Regional Contributions to Growth, 2007; 3. External Demand; III. The Growth Accounting Framework; IV. Decomposition of Sources of Growth for Sri Lanka; 3. Average Annual Contributions to Growth; 4. Growth Under Three Scenarios; V. Potential Output and the Output Gap; VI. Policy Issues and Conclusion; 4.1. Regional Comparisons of Expenditure Components; 4.2. Regional Comparisons of Production Components5. Capital Stock and Capacity Utilization Rates6. Employment, Labor, and Population; 7. TFP and Real GDP Growth; 8. TFP Growth with Different Depreciation Rates of Capital Stock; 9. The Output Gap and Inflation; Appendix; 1. Some Applications of the Production Function Approach in South and East Asian Economies; 2. Estimating Potential Output; References
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