Thus, countries with greater initial stocks of human capital experience a more rapid rate of introduction of new goods and thereby tend to grow faster. Countries with higher human capital also have lower fertility rates and higher ratios of physical investment. Financial indicators and growth in a cross section of countries robert g. Foreign direct investment and growth in ep and is countries. O11, o55, k42 1 introduction poverty, slow economic growth, and unequal income and wealth distribution are endemic in african countries. With regard to government, the crosscountry data indicate that government consumption is inversely related to growth, whereas public investment has little relation with growth. Government expenditure and economic growth 129 1997, estimate timeseries regressions of growth and inflation across countries and find inflation to be inversely related to growth. Economic growth in a cross section of countries in romer 1990 human capital is the key input to the research sector, which generates the new products or ideas that underlie technological progress. Thus, countries with greater initial stocks of human capital experience a more rapid rate of introduction of new goods and thereby. The dms growth puzzle dimson, marsh and staunton dms studied the relationship between long term stock market returns and longterm gdp growth. Fifteen of the 21 countries were in europe, so the sample largely represented a similar.
This convergence hypothesis seems to be inconsistent with the crosscountry evidence, which indicates that per capita growth rates for about 100 countries in the postworld war ii period are uncorrelated. Economic growth in a cross section of countries by robert j. Economic growth in a cross section of countries, rcer working papers 201, university of rochester center for economic research rcer. Analytical framework in this section, we outline a theoretical model of fiscal decentralization and economic growth. Exports and economic growth in developing countries. Evidence from developing countries based on point of time comparisons of happiness in richer and poorer countries, it is commonly asserted that economic growth will have a significant positive impact on happiness in poorer countries, if not richer. Economic growth in a cross section of countries by robert. A series of studies using crosscountry data all suggest that growth has neither a positive nor a negative effect on inequality. This convergence hypothesis seems to be inconsistent with the cross. We applied trivariate causality tests using time series data drawn from. Results using chainweighted values of gdp are not very different.
Western european countries from 1950 to 1985, and a crosssection of about 100 countries from 1960 to 1985 indicates that the rate of convergence is on the order of 2 percent per year. Oct 17, 2016 the dms growth puzzle dimson, marsh and staunton dms studied the relationship between long term stock market returns and longterm gdp growth. Citations of economic growth in a cross section of countries. Information and communications technology ict is one of the key factors explaining growth differentials across countries. Growth is inversely related to the share of government consumption in gdp, but insignificantly related to the share of public investment.
The focus on human capital as a driver of economic growth for developing countries has led to undue attention on school attainment. Financial structure and growth bank for international. Countries with higher human capital also have lower fertility rates and higher ratios of physical investment to gdp. Pdf economic growth in a cross section of countries. The relationship between tourism specialisation and economic growth is one of the main topics under discussion in the growing field of tourism economics. It is empirically important to identify which financial intermediaries. Some analysts assert that in less developed countries happiness and economic growth are positively related up to some point, beyond which the association. Average growth rates are positively related to political stability, which may capture the benefits of secure property rights. Pdf impact of information and communication technology. Section 3 provides a detailed empirical examination of the relationship between fiscal decentralization and economic growth. Does foreign direct investment accelerate economic growth. Human capital and economic growth 205 rate of return to investment.
Recent models of economic growth can generate longterm growth without relying. Crosssection evidence for oecd countries this is a wileyblackwell publishing paper. Undervaluation and economic growth in selected developing countries, 19502004 china 0 4 2 6 8 0. Evidence from developing countries based on pointoftime comparisons of happiness in richer and poorer countries, it is commonly asserted that economic growth will have a significant positive impact on happiness in poorer countries, if not richer. Income and population growth move together, and both types of growth are 1. Journalof monetary economics elsevier journal of monetary economics 36 1995 ll7143 economic growth in a crosssection of cities edward l. Has past economic growth been associated technology seems to woit in favor of with the accumulation of natural capital or the improved envimrnmental quality. Section 4 describes our data set, highlights some basic statistics and describes the specification used in the estimation of the crosssection and panel models. This model is estimated for a cross section sample of 24 developing countries, and the results support the notion that private investment has a larger direct effect on growth than does public. The second explores the varying linkage between financial structure and economic growth. Government spending in a simple model of endogeneous growth. Investment in ict contributes to overall capital deepening and therefore helps raise economic growth. Citeseerx economic growth in a cross section of countries. Pdf private investment and economic growth in developing.
Barro, title economic growth in a cross section of countries, journal journal of economics, cvi. We examine the relationship between urban characteristics in 1960 and urban growth between 1960 and 1990. Economic growth in a cross section of countries abstract in neoclassical growth models with diminishing returns to capital, a countrys per capita growth rate tends to be inversely related to its initial level of income per person. I am grateful for suggestions from olivier blanchard and for research assistance from holger wolf and david renelt. I970 1975,1980 1985 subsaharan 1960 africa 1965 27. I 970 latin america1 1960 caribbean 1965 23 1970 1975 1980 1985.
But stronger support has been provided for the hypothesis on the intercountry crosssection data. Evidence from timeseries and crosssection data, economic development and cultural change 36, no. This convergence hypothesis seems to be inconsistent with the crosscountry evidence, which indicates that per capita growth rates for about 100 countries in the postworld war ii period are uncorrelated with the starting level of per capita product. Pdf economic growth in a crosssection of nonindustrial. Country economics department 1 growth in a cross section of countries robert g. In section 5 we present our crosssection regressions of growth. Economic growth in a cross section of countries 409 the key input to the research sector. Using cross section data to analyze fortysix developing countries over the period 19701985, they find support for bhagwatis hypothesis that fdi will increase growth in countries which adopt export promotion policy. A serious limitation of these cross section analyses by park and ginarte 1997, park. Economic growth in a crosssection of cities sciencedirect. Determinants of economic growth in a panel of countries.
These results on growth, fertility, and investment are consistent with some recent theories of endogenous economic growth. Economic fluctuations and growth in neoclassical growth models with diminishing returns to capital, a countrys per capita growth rate tends to be inversely related to its initial level of income per person. The link between openness and longrun economic growth. For 98 countries in the period 19601985, the growth rate of real per capita. The assumption that there is a uniquely correct or at least a. Tourism and growth in a crosssection of countries core. Economic growth in a cross section of countries nber.
Pdf tourism and growth in a crosssection of countries. Economic growth in a cross section of countries 409 the key input to the research sector, which generates the new products or ideas that underlie technological progress. Gdp is positively related to initial human capital proxied by 1960. No 3120, nber working papers from national bureau of economic research, inc abstract. The first chapter is an empirical study of postwar economic growth in a wide. Economic growth in a cross section of countries robert barro working paper no. Its main objective is to constitute the necessary empirical and theoretical means for explaining the disparities in growth rates across countries.
This section considers the empirical determinants of growth. Economic growth in a cross section of countries the. This model is estimated for a crosssection sample of 24 developing countries, and the results support the notion that private investment has a larger direct effect on growth than does public. Unlike the microeconomic evidence, macroeconomic studiesusing aggregate fdi flows for a broad cross section of countriesgenerally suggest a positive role for fdi in generating economic growth, especially in particular environments. Apr 27, 2000 these results on growth, fertility, and investment are consistent with some recent theories of endogenous economic growth. Jones stanford gsb, stanford, ca, united states nber, cambridge, ma, united states contents 1. Section 4 concludes and points to some limitations of the study. Economic growth in a cross section of countries, the quarterly journal of economics, oxford university press, vol. A series of studies using cross country data all suggest that growth has neither a positive nor a negative effect on inequality. Financial indicators and growth in a cross section of. Economic growth in a cross section of countries 1991 cached. Inequality and growth in a panel of countries springerlink. In neoclassical growth models with diminishing returns to capital, a countrys per capita growth rate tends to be inversely related to its initial level of income per person.
Economic growth in a cross section of countries, the quarterly journal of economics, volume 106, issue 2, may 1991. The paper tests using crosssection data relating to a sample of fortysix developing countries the hypothesis advanced by jagdish bhagwati, according to which the beneficial effect of fdi, in terms of enhanced economic growth, is stronger in those countries which pursue an outwardly oriented trade policy than it is in those countries. Developing countries have made considerable progress in closing the gap with developed countries in terms of school attainment, but recent research has underscored the importance of cognitive skills for economic. Lee, economic growth and human development in the republic of korea, 19451992 new york. Human capital and economic growth table 1 trends of educational attainment by region total regionigroup year oecd 1960 22 countries 1965,1970 1975 1. Economic growth in a cross section of countries the quarterly. Scheinkmand, andrei shleifep harvard university, cambridge, ma 028, usa b hoover institution, stanford, ca 94305, usa c national bureau of economic research, cambridge, ma 028, usa d university of chicago, chicago, il 60637.
This convergence hypothesis seems to be inconsistent with the crosscountry evidence, which indicates that per capita. If inequality in income distribution, as measured by such indicators as the ginicoefficient, remains the same, increases in pci are sure to reduce the incidence of poverty. With regard to government, the cross country data indicate that government consumption is inversely related to growth, whereas public investment has little relation with growth. In the following section, we turn to some of the most cited empirical analyses of the relationship between international trade and growth. Financial indicators and growth in a cross section of countries.
Corruption, economic growth, income distribution, dynamic panel estimator, africa jel classi. King and ross levine financial indicators imay be linked to growth through two channels in particular. The concluding section summarises the main results. The study examines the relationship between human capital and economic growth by. Barros, economic growth in a cross section of countries, quarterly journal of economics 1991 407444. With regard to government, the crosscountry data indicate that government consumption is inversely related to growth, whereas public. Barroeconomic growth in a cross section of countries. Section 4 deals with a descriptive analysis of the data and reports the regression results. I am grateful for research assistance from holger wolf and david renelt. Sensitivity analysis on the core model found that the results are robust in terms of inclusion of relevant variables.
The paper investigates the effects of subsaharan african colonial heritage on economic growth in a sample of nonindustrial countries. A serious limitation of these crosssection analyses by park and ginarte 1997, park. The objective of this study is to explore the impacts of ict investment on economic growth in a cross section of 48 islamic countries using the data over the period 1995. The enigma of economic growth and stock market returns. The article takes up in succession cross section studies, the long term time series relationship. Corruption, economic growth, and income inequality in africa. This thesis studies long run economic growth in a cross section of countries. Economic growth in a crosssection of countries, quarterly journal of economics 106, 407444. The third empirically tests the roles banks and markets play in moderating business cycle fluctuations. Pdf we provide an empirical assessment of the relationship between tourism specialisation and economic growth by updating the findings of previous. Scheinkmand, andrei shleifep harvard university, cambridge, ma 028, usa b hoover institution, stanford, ca 94305, usa c national bureau of economic research, cambridge, ma 028, usa d university of chicago, chicago. Economic growth in a cross section of countries robert j.
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