ABSTRACT
This chapter represents to develop an empirical framework for identifying the likely constraints impeding growth of various emerging economies at each stage of their development. Global growth has benefited greatly over the last 20 years from the increased expansion of world trade and related surge in growth in the emerging economies. The World Economic Forum's Global Competitiveness Index provides an excellent starting point for examining the changing environments emerging economies face in their progress towards developed country status. The framework focuses on the short term, identifying constraints as they emerge rather than attempting to anticipate future impediments to growth. While health and education remain important, they become secondary to institutional development as countries move up the development ladder. The message: deficient governance structures and/or inadequate economic reforms can result in growth-stopping diminishing returns to factor inputs. In terms of economic freedom, openness to trade is an important element contributing to a country's growth potential at the stage of development.
