Abstract

We use directed acyclic graphs to study post‐1970 cross‐section data from 79 world economies and a subset of 59 less developed economies. Openness to trade, government savings and natural resource exports are direct causes of GDP growth rate. Openness to trade and government savings contribute positively and natural resource exports contributes negatively to growth rate in GDP. An institutional quality index, agricultural productivity, life expectancy, initial GDP and a tropical climate dummy are related to but are not direct causes of GDP growth rate in one or more versions of the models uncovered. Implications on modeling are explored.

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