Macroeconomic determinants of economic growth in low- and mid-income countries: new evidence using a non-parametric approach

This paper revisited the determinants of economic growth by investigating the divergent impact of eight macroeconomic factors on economic growth in low- and mid-income countries using a non-parametric approach with quantile regression (QR) and method of moment quantile regression (MMQR). Our results show that macroeconomic factors have a heterogeneous impact on economic growth. The role of human capital, foreign direct investment, and institutional quality are more important in countries with low economic growth, and the negative effects of trade openness on economic growth are also stronger in such countries. Our study provides an important implication that countries with different levels of growth require their own strategies to achieve economic growth.