Leapfrogging Vs. Growth

Reut Institute presents the differences between leapfrogging and growth

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leapfrogging wide table ENG

  • Relative improvement requires faster growth than leading countries. If wealthy nations can attain growth of 5% during growth episodes, to leapfrog a country must grow at a rate of at least 6%.
  • Leapfrog is an a-cyclical phenomenon that outlasts typical business cycles and demonstrates resilience to external shocks.
  • Eighty periods of sustained growth over 8 years were identified according to the Penn World Tables. Many more episodes of shorter growth spurts exist. (Hausman, et. al., Growth Accelerations, August 2005).
  • Some countries may have already done so and need to concentrate on diffusing in the new part of the product space. Others may need to jump to long distances just to achieve moderate growth.
  • The term "Macroeconomic Stability" describes a national economy that has minimized vulnerability to external shocks, which in turn increases its prospects for sustained growth. Stability is attained through managing national debt, inflation, and currency fluctuations. See Reut Term: Macroeconomic Stability.