A comparative economic growth analysis: Developing and developed -countries

This study delves into a comparative analysis of economic growth patterns between developing and developed countries. Leveraging up-to-date panel data spans the period from 1990 to 2020, the research scrutinizes key indicators such as per capita GDP (Real GDP), gross capital formation, labor force, export, resource rent, life expectancy, and net FDI (Foreign Direct Investment (FDI). Sector-wise performance is meticulously examined to determine the specialization index, offering insights into the homogeneity among countries with similar endogenous characteristics. The findings reveal that none of the countries exhibit specialization in any economic sector. The study extends its focus to developing (lower-middle-income and upper-middle-income) and developed (higher-income) countries, providing a nuanced understanding of developmental indicators. Through an econometric analysis of panel data, the research validates hypotheses related to the impact of various factors on economic growth in both developing and developed nations. Descriptive statistics, multicollinearity, cross-sectional dependence tests, and unit root tests contribute to a robust empirical foundation. The study's policy implications highlight the need for tailored strategies to strengthen specific developmental indicators, emphasizing the pivotal role of education and human knowledge in driving economic growth. Overall, the research aims to enrich the discourse on global economic dynamics, offering recommendations for informed policy decisions and future research directions.