World Bank2013-03-282013-03-282006-06-27https://hdl.handle.net/10986/13053This policy note reviews the current determinants of gross domestic product growth in Lebanon, and proposes a strategy to accelerate such growth in the years to come. Emigration and macro-economic trends will require urgent attention to foster growth. In the absence of job opportunities, half of each Lebanese generation eventually emigrates while another fourth stays idle. Lebanon's active population is aging, its human capital is eroding, and its resident population is aging. To reverse these trends, growth needs to be accelerated to meet Lebanese economic expectations. Reviewing various possible constraints, the note concludes that fiscal imbalances and barriers to entry are most binding to economic growth. A pro-growth strategy could be articulated around fiscal stabilization and reducing barriers to investment. If synonymous with structural reforms in the pension, civil service and energy sectors, fiscal stabilization could even bring significant growth rewards, which are estimated at 0.4-0.5 percentage points of additional real GDP growth per year.en-USCC BY 3.0 IGOACCOUNTINGAGGREGATE DEMANDAGRICULTUREBALANCE OF PAYMENTSBANKING REGULATIONSBANKING SECTORBANKRUPTCIESBARRIERS TO ENTRYBASIS POINTSBENCHMARKBINDING CONSTRAINTBONDSBORROWING COSTSBORROWING REQUIREMENTSBUSINESS CYCLEBUSINESS CYCLESCAPITAL ACCOUNTCAPITAL FLOWSCAPITAL INFLOWSCAPITAL MARKETSCAPITAL MARKETS DEVELOPMENTCAPITAL MOBILITYCAPITAL MOVEMENTSCAPITAL OUTFLOWSCAPITAL STOCKCENTRAL BANKCHECKSCOMMERCIAL BANKSCOMMERCIAL LAWSCOMPETITIVENESSCONSUMER PRICE INDEXCONSUMERSCONTRACT ENFORCEMENTCURRENCYCURRENT ACCOUNT DEFICITDEBTDEBT LEVELSDEBT OVERHANGDEBT PAYMENTSDEBT RESTRUCTURINGDEBT SERVICEDEBT STOCKDEBTORSDECISION MAKINGDECISION TREEDEMAND FOR CREDITDEPOSITORSDEPOSITSDEPRECIATION OF ASSETSDEVALUATIONDEVELOPING COUNTRYDEVELOPMENT ECONOMICSDISPOSABLE INCOMEDOMESTIC MARKETDOMESTIC MARKETSDYNAMIC ANALYSISECONOMETRIC ANALYSISECONOMIC ACTIVITYECONOMIC CONSTRAINTSECONOMIC DEVELOPMENTECONOMIC EFFICIENCYECONOMIC EXPECTATIONSECONOMIC FLUCTUATIONSECONOMIC HISTORYECONOMIC RISKSECONOMIC SITUATIONECONOMIC TRENDSECONOMIES OF SCALEELASTICITYELASTICITY OF SUBSTITUTIONEMERGING ECONOMIESENFORCEMENT OF CONTRACTSEQUILIBRIUMEQUIPMENTSEUROBONDEXCHANGE RATEEXCISE TAXESEXPENDITUREEXPENDITURESEXPORT GROWTHEXPORT PERFORMANCEEXPORTSEXPROPRIATIONEXTERNAL DEBTFINANCIAL CRISISFINANCIAL DEVELOPMENTSFINANCIAL MARKETSFINANCIAL SECTORFINANCIAL SUPPORTFINANCIAL SYSTEMFISCAL POLICIESFISCAL POLICYFIXED CAPITALFIXED COSTSFIXED INVESTMENTFORECASTSFOREIGN CAPITALFOREIGN COMPETITIONFOREIGN CURRENCIESFOREIGN CURRENCYFOREIGN DIRECT INVESTMENTSFOREIGN FUNDSFOREIGN MARKETSGDPGDP PER CAPITAGENERAL EQUILIBRIUM ANALYSISGNPGOVERNMENT BORROWINGGOVERNMENT SPENDINGGROSS FIXED CAPITAL FORMATIONGROSS NATIONAL PRODUCTGROWTH POTENTIALGROWTH RATEHUMAN CAPITALIMPERFECT COMPETITIONIMPLICIT SUBSIDYINCOMEINCOME LEVELSINDEBTEDNESSINFLATIONINFRASTRUCTURE INVESTMENTSINSTRUMENTINTELLECTUAL PROPERTYINTEREST RATESINTERNATIONAL CAPITALINTERNATIONAL CAPITAL MARKETSINTERNATIONAL DEVELOPMENTINTERNATIONAL STANDARDSINVENTORYINVESTINGINVESTMENT BANKINGINVESTMENT BEHAVIORSINVESTMENT CLIMATEINVESTMENT DECISIONSINVESTMENT FINANCEINVESTMENT OPPORTUNITIESINVESTMENT RATEJUDICIAL REFORMLABOR MARKETLABOR MARKETSLACK OF COMPETITIONLEGAL IMPEDIMENTSLIQUID INSTRUMENTSLIQUIDITYLOCAL CURRENCYLONG-TERM INVESTMENTSM3MACROECONOMIC POLICIESMARGINAL COSTSMARKET FAILUREMARKET FAILURESMARKET MECHANISMSMARKET SHAREMARKET SHARESMATURITIESMATURITYMONETARY FUNDMONETARY STABILITYMONEY SUPPLYMONOPOLIESOIL PRICESOPPORTUNITY COSTOPTIMIZATIONOUTPUT LOSSESPENSIONPENSION REFORMSPENSION SYSTEMPER CAPITA INCOMEPORTFOLIOPORTFOLIO PERFORMANCEPOST-WAR RECONSTRUCTIONPRICE LEVELSPRICE SUBSIDIESPRIVATE CAPITALPRIVATE INVESTMENTPRIVATE INVESTMENTSPRIVATE INVESTORSPRODUCTION COSTSPRODUCTIVE INVESTMENTSPRODUCTIVITYPRODUCTIVITY GROWTHPROPERTY RIGHTSPROTECTION OF INVESTORSPUBLIC ASSETSPUBLIC DEBTPUBLIC DEBT MANAGEMENTPUBLIC FINANCEPURCHASING POWERREAL ESTATE COLLATERALSREAL ESTATE INVESTMENTSREAL EXCHANGE RATEREAL EXCHANGE RATESREAL GDPREAL INTERESTREAL INTEREST RATESREMITTANCESRETURNRETURNSSAVINGSSAVINGS RATESOFT LOANSSOVEREIGN RATINGSOVEREIGN RATINGSSOVEREIGN RISKSTRUCTURAL CHANGESUPPLY OF CREDITTAXTAX POLICIESTAXATIONTELECOMMUNICATIONSTOTAL FACTOR PRODUCTIVITYTRADE BALANCETRADE LIBERALIZATIONTRADINGTRADING COSTSTREASURYTREASURY BILLSUNDERESTIMATESUNEMPLOYMENTUNEMPLOYMENT RATEUTILITY FUNCTIONVALUE ADDEDWAGESWorld Bank10.1596/13053