Economic growth is the most powerful instrument for reducing poverty and improving the quality of life in developing countries. The developing countries are of special interest, because, according to the cross sectional comparisons, this is where economic growth would be expected to have. The concept is attributed to leading ecological economist and steadystate theorist herman daly, though other theorists can also be credited for the incipient idea. Economic growth in a cross section of countries 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 school enrollment rates and negatively related to the initial 1960 level of. This paper for the first time ever utilises time series data and methods, along with the dynamic heterogeneous panel approach, essentially on developing countries. Economic growth palgrave version 5 brown university. 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. Theproductisreferredtoaseffectivelaborbecauseincreases in a t makelabormoreproductive. And what characteristics do countries in these various groups share.
King and ross levine financial indicators imay be linked to growth through two channels in particular. We find significant crosscountry heterogeneity in the dynamics of financial structure and economic growth, and conclude. There are indeed important theories which provide an affirmative answer. This convergence hypothesis seems to be inconsistent with the crosscountry evidence, which indicates that per capita growth rates for about 100 countries in.
A crosscountry analysis hossein jalilian bradford centre for international development university of bradford, uk colin kirkpatrick, centre on regulation and competition. This convergence hypothesis seems to be inconsistent with the cross country evidence, which indicates that per capita growth rates for about 100 countries in. We believe that there is a positive relationship between income inequality and economic growth, and will test that empirically using regression analysis. 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. Background in models of endogenous growth, trade can impact upon growth by allowing access to the innovative products of other. Khalid iqbal 1, nazia yasmin 2, muhammad rizwan yaseen 2. With regard to government, the crosscountry data indicate that government consumption is inversely related to growth, whereas public investment has little relation with growth. 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. Uneconomic growth, in human development theory, welfare economics the economics of social welfare, and some forms of ecological economics, is economic growth that reflects or creates a decline in the quality of life.
Tourism and growth in a crosssection of countries core. The internet and economic growth in lessdeveloped countries. The focus on human capital as a driver of economic growth for developing countries has led to undue attention on school attainment. 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. Request pdf economic growth in a crosssection of nonindustrial countries. Pdf we provide an empirical assessment of the relationship between tourism specialisation and economic growth by updating the findings of previous. 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. This convergence hypothesis seems to be inconsistent with the crosscountry evidence, which indicates that per capita. Countries with higher human capital also have lower fertility rates and higher ratios. 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. Economic growth in a cross section of countries nber.
Comparing latin america with the oecd, additionally, lucas 1988 argues that public investment in education increases the level of human capital and this can be seen as a main source of longrun economic growth. 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. Pdf empirical cross section dynamics in economic growth. However, other authors have found evidence in the crosssection. In this paper, we discuss the influence of urbanization and urban primacy on the economic growth rates of developing nations. Countries with higher human capital also have lower fertility rates and higher ratios of physical. Debt and economic growth in developing and industrial countries. Importance of exports and economic growth, crosscountry time series at a glance. Impact of demographic transition on economic growth of pakistan. 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. Analytical framework in this section, we outline a theoretical model of fiscal decentralization and economic growth.
Barroeconomic growth in a cross section of countries. This thesis studies long run economic growth in a cross section of countries. Theoretical developments since romers 1990 seminal work on human capitaldriven growth have generated several classes of models in which longrun growth of per capita income can be affected by a variety of permanent policy changes. Evidence from timeseries and crosssection data, economic development and cultural change 36. Included in the paper is preliminary evidence, from crosssection and timeseries analyses, that while urbanization is an inevitable product of economic development, the process of urbanization is best achieved when the urbanization is. Section 3 provides a detailed empirical examination of the relationship between fiscal decentralization and economic growth. Pdf the determinants of economic growth in emerging. Pdf economic growth in a cross section of countries. In the most recent twentyfive years of our sample, the growth rate has accelerated to about 2% per year. Can we expect international convergence of per capita income pci in the long run. There are several reasons for using crosssection timeseries data. India, japan, korea, malaysia, pakistan, philippines, sri lanka and thailand. I am grateful for suggestions from olivier blanchard and for research assistance from holger wolf and david renelt. Pdf tourism and growth in a crosssection of countries.
Citations of economic growth in a cross section of countries. A quick glance at table 1 indicates that authors study different sets of countries, over different years, and use different explanatory variables. 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. The relationship between tourism specialisation and economic growth is one of the main topics under discussion in the growing field of tourism economics. The variety of crosscountry growth regressions is enormous. Empirical cross section dynamics in economic growth. The traditional neoclassical growth theory has been supplanted by the so called new growth theory. Economic growth in a crosssection of nonindustrial. Crosssectional regressions and the empirics of economic growth.
Economic growth in a cross section of countries the quarterly. It is empirically important to identify which financial intermediaries. At the same time, our damage to the environment, climate change or the depletion of natural resources could one day bring an end to growth as we know it. Barro, title economic growth in a cross section of countries, journal journal. Barro harvard university abstract growth rates vary enormously across countries over long periods of time. The main objective of this study is to examine the relationship between financial sector development and economic growth for the following asian countries. Citeseerx economic growth in a cross section of countries. Developing countries can benefit from trade with more advanced countries by importing a greater variety and a higher quality of capital and intermediate goods that are used in final manufacturing production. Not all landlocked developing countries are in a similar phase of economic development, some countries have upper middle income levels. These data partly reflect the strong positive nexus of trade and growth in these countries.
These studies have included both time series and cross section data. Financial indicators and growth in a cross section of countries robert g. Economic growth in a cross section of countries robert j. Barro 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 school. Second, i focus on the spread of economic growth throughout the world.
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. Section 4 concludes and points to some limitations of the study. First of all, a cross country analysis of a group of emerging and transition economies in the period 19992005 will be carried out in order to understand what determines such growth among these. The findings suggest that increases in political rights initially increase growth but tend to retard growth once a moderate level of democracy has been attained, but barro states that one cannot conclude from this evidence that more or less democracy is a critical element for economic growth. Growth at the frontier we begin by discussing economic growth at the frontier. The relationship between insurance and economic growth.
Economic growth e0xxxx economic growth is the increase in a countrys standard of living over time. I am grateful for research assistance from holger wolf and david renelt. We applied trivariate causality tests using time series data drawn from. International trade and economic growth in developing. The model that this paper develops will seek to find a correlation between income inequality and economic growth using crosscountry data obtained from 2010. 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. Exports and economic growth in developing countries.
The related empirical analysis employs cross country data in order to estimate the impact of the different factors. Importance of exports and economic growth, crosscountry. Financial indicators and growth in a cross section of. Fitting a mixedeffects model with autocorrelated residuals to longitudinal countrylevel data, showing how changing importance of exports is positively related to economic growth. Economic fluctuations and growth program 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. Both crosscountry research and country case studies provide overwhelming evidence that rapid and sustained growth is critical to making faster progress towards the millennium development goals and not just the. Its main objective is to constitute the necessary empirical and theoretical means for explaining the disparities in growth rates across countries. Economic growth in a cross section of countries 1991 cached. Economic growth in a crosssection of cities sciencedirect. No 3120, nber working papers from national bureau of economic research, inc abstract.
To what extent are countries behind the frontier catching up, falling behind, or staying in place. The assumption that there is a uniquely correct or at least a uniquely appropriate definition of economic growth, openly invites. Moreover, insurance activity is found to granger cause economic growth in most of the sectors. Economic growth in a cross section of countries by robert. Journalof monetary economics elsevier journal of monetary economics 36 1995 ll7143 economic growth in a crosssection of cities edward l. This convergence hypothesis seems to be inconsistent with. Economic growth in a cross section of countries important policy question development economics will poor countries catch up with rich countries.