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Nonlinear economic growth: Some theory and cross-country evidence

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  • Fiaschi, Davide
  • Lavezzi, Andrea Mario

Abstract

The paper aims to test the existence of different regimes in the growth process. We propose a simple nonlinear growth model which features different relationships between growth rate and income level. We iden tify its testable implications in terms of state space dynamics. By estimating Markov transition matrices we show that growth is indeed a nonlinear process. Economic growth proceeds by alternating phases of acceleration and deceleration. We discuss the relevance of these results with respect to the issue of income convergence across countries and models of technological diffusion.
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  • Fiaschi, Davide & Lavezzi, Andrea Mario, 2007. "Nonlinear economic growth: Some theory and cross-country evidence," Journal of Development Economics, Elsevier, vol. 84(1), pages 271-290, September.
    • Handle: RePEc:eee:deveco:v:84:y:2007:i:1:p:271-290
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    More about this item

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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