This convergence hypothesis seems to be inconsistent with the cross. These results on growth, fertility, and investment are consistent with some recent theories of endogenous economic growth. Tourism and growth in a crosssection of countries core. 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 article takes up in succession cross section studies, the long term time series relationship. A serious limitation of these crosssection analyses by park and ginarte 1997, park. Economic growth in a cross section of countries, the quarterly journal of economics, volume 106, issue 2, may 1991. This convergence hypothesis seems to be inconsistent with the crosscountry evidence, which indicates that per capita. But stronger support has been provided for the hypothesis on the intercountry crosssection data.
A series of studies using crosscountry data all suggest that growth has neither a positive nor a negative effect on inequality. The focus on human capital as a driver of economic growth for developing countries has led to undue attention on school attainment. 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. Economic growth in a cross section of countries the. No 3120, nber working papers from national bureau of economic research, inc abstract. 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. Corruption, economic growth, income distribution, dynamic panel estimator, africa jel classi. 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 growth rates for about 100 countries in the postworld war ii period are uncorrelated.
Average growth rates are positively related to political stability, which may capture the benefits of secure property rights. 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. Section 4 concludes and points to some limitations of the study. Economic growth in a cross section of countries 1991 cached. 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. 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. Barroeconomic growth in a cross section of countries.
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. Barro, title economic growth in a cross section of countries, journal journal of economics, cvi. Economic growth in a cross section of countries by robert j. Human capital and economic growth table 1 trends of educational attainment by region total regionigroup year oecd 1960 22 countries 1965,1970 1975 1. Information and communications technology ict is one of the key factors explaining growth differentials across countries. Crosssectional regressions and the empirics of economic growth. I use throughout the values of gdp expressed in terms of prices for the base year, 1980. 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.
Pdf impact of information and communication technology. Section 4 deals with a descriptive analysis of the data and reports the regression results. 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. 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. 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. An empirical solow growth model is specified in a way that allows an examination of whether or not growth in. For 98 countries in the period 19601985, the growth rate of real per capita gdp is positively related to initial human capital proxied by 1960 schoolenrollment rates and negatively related to the initial 1960 level of real per capita gdp. 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.
Section 4 describes our data set, highlights some basic statistics and describes the specification used in the estimation of the crosssection and panel models. Its main objective is to constitute the necessary empirical and theoretical means for explaining the disparities in growth rates across countries. Does foreign direct investment accelerate economic growth. The concluding section summarises the main results. Economic growth in a cross section of countries by robert. This thesis studies long run economic growth in a cross section of countries. This section considers the empirical determinants of growth. The paper investigates the effects of subsaharan african colonial heritage on economic growth in a sample of nonindustrial countries. Economic growth in a cross section of countries nber. Corruption, economic growth, and income inequality in africa. Thus, countries with greater initial stocks of human capital experience a more rapid rate of introduction of new goods and thereby. The enigma of economic growth and stock market returns. Pdf we provide an empirical assessment of the relationship between tourism specialisation and economic growth by updating the findings of previous.
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. Some analysts assert that in less developed countries happiness and economic growth are positively related up to some point, beyond which the association. With regard to government, the crosscountry data indicate that government consumption is inversely related to growth, whereas public. In the following section, we turn to some of the most cited empirical analyses of the relationship between international trade and growth.
A serious limitation of these cross section analyses by park and ginarte 1997, park. Foreign direct investment and growth in ep and is countries. Crosssection evidence for oecd countries this is a wileyblackwell publishing paper. Sensitivity analysis on the core model found that the results are robust in terms of inclusion of relevant variables. It is empirically important to identify which financial intermediaries. Gdp is positively related to initial human capital proxied by 1960. Economic growth in a crosssection of countries, quarterly journal of economics 106, 407444. Financial indicators and growth in a cross section of. Analytical framework in this section, we outline a theoretical model of fiscal decentralization and economic growth. Jones stanford gsb, stanford, ca, united states nber, cambridge, ma, united states contents 1.
Economic growth in a cross section of countries, the quarterly journal of economics, oxford university press, vol. 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. Evidence from timeseries and crosssection data, economic development and cultural change 36, no. The first chapter is an empirical study of postwar economic growth in a wide. Economic growth in a cross section of countries 409 the key input to the research sector.
A series of studies using cross country data all suggest that growth has neither a positive nor a negative effect on inequality. With regard to government, the crosscountry data indicate that government consumption is inversely related to growth, whereas public investment has little relation with growth. Barros, economic growth in a cross section of countries, quarterly journal of economics 1991 407444. I970 1975,1980 1985 subsaharan 1960 africa 1965 27. I am grateful for suggestions from olivier blanchard and for research assistance from holger wolf and david renelt. We applied trivariate causality tests using time series data drawn from. The link between openness and longrun economic growth.
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. Has past economic growth been associated technology seems to woit in favor of with the accumulation of natural capital or the improved envimrnmental quality. Economic growth in a cross section of countries the quarterly. O11, o55, k42 1 introduction poverty, slow economic growth, and unequal income and wealth distribution are endemic in african countries. In section 5 we present our crosssection regressions of growth. Financial indicators and growth in a cross section of countries robert g.
King and ross levine financial indicators imay be linked to growth through two channels in particular. Pdf economic growth in a cross section 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. Exports and economic growth in developing countries. Economic growth in a cross section of countries robert barro working paper no.
Pdf private investment and economic growth in developing. Journalof monetary economics elsevier journal of monetary economics 36 1995 ll7143 economic growth in a crosssection of cities edward l. Financial indicators and growth in a cross section of countries. Growth is inversely related to the share of government consumption in gdp, but insignificantly related to the share of public investment. Countries with higher human capital also have lower fertility rates and higher ratios of physical investment. Economic growth in a cross section of countries, rcer working papers 201, university of rochester center for economic research rcer. Pdf tourism and growth in a crosssection of countries. Recent models of economic growth can generate longterm growth without relying. I 970 latin america1 1960 caribbean 1965 23 1970 1975 1980 1985.
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. For 98 countries in the period 19601985, the growth rate of real per capita. Lee, economic growth and human development in the republic of korea, 19451992 new york. The assumption that there is a uniquely correct or at least a. 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. Citeseerx economic growth in a cross section of countries. 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. Results using chainweighted values of gdp are not very different. Fifteen of the 21 countries were in europe, so the sample largely represented a similar. The dms growth puzzle dimson, marsh and staunton dms studied the relationship between long term stock market returns and longterm gdp growth. I am grateful for research assistance from holger wolf and david renelt. Apr 27, 2000 these results on growth, fertility, and investment are consistent with some recent theories of endogenous economic growth.
Section 3 provides a detailed empirical examination of the relationship between fiscal decentralization and economic growth. Government spending in a simple model of endogeneous growth. Economic growth in a cross section of countries robert j. The third empirically tests the roles banks and markets play in moderating business cycle fluctuations. We examine the relationship between urban characteristics in 1960 and urban growth between 1960 and 1990. The second explores the varying linkage between financial structure and economic growth. Pdf economic growth in a crosssection of nonindustrial. Economic growth in a crosssection of cities sciencedirect.
Citations of economic growth in a cross section of 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. The relationship between tourism specialisation and economic growth is one of the main topics under discussion in the growing field of tourism economics. Inequality and growth in a panel of countries springerlink. Determinants of economic growth in a panel of countries. Undervaluation and economic growth in selected developing countries, 19502004 china 0 4 2 6 8 0. 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.
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. Income and population growth move together, and both types of growth are 1. Gregory, david romer, and david weil, a contribution to the empirics of economic growth, quarterly journal of economics, may 1992, 107 2, 407 438. Investment in ict contributes to overall capital deepening and therefore helps raise economic growth. The study examines the relationship between human capital and economic growth by. 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. Country economics department 1 growth in a cross section of countries robert g.