22
Data and Basic Model
The economic data used here come from Summers and Heston and cover the 1950-88 period. In order not to throw away information by over-averaging, I take five-year averages of the data, giving eight observations on each country. Since the data stop in 1988, the last observation for each country is a three-year average. Dropping this last time period does not substantively change any of the results reported below. The dependent variable in this study is real total GDP growth in 1985 international prices.
22.1 Variables
The model I use here is based on what has become the basic empirical model in the economics literature which implies that convergence effects, labour force growth and investment are the baseline factors that influence GDP growth.3 These forces are represented by the following three variables:
1. Initial real per-capita GDP. This variable is included to capture convergence effects. With a fixed technology exhibiting diminishing returns to scale, poorer countries with a smaller capital stock should grow faster, 'catching up' to richer countries. This coefficient should be negative; richer countries will have slower growth. This result does not always hold for all countries and time periods, but seems generally confirmed for the industrial countries in the post-war period.
2. Investment. While initial wealth differences measure the scope for catch-up by capturing differences in the marginal product of capital across countries, the actual rate of investment at any given marginal productivity will also affect growth in the
____________________
3
Barro ( 1991) emphasizes these three factors. Levine and Renelt ( 1992) are sceptical even of the empirical relevance of investment.

-161-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited page

Bookmark this page
Government and Growth
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this book
  • Bookmarks
  • Highlights & Notes
  • Citations
/ 274

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.