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Estimates of the steady state growth rates for some European countries

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  • Casadio, Paolo
  • Paradiso, Antonio
  • Rao, B. Bhaskara

Abstract

This paper estimates the steady state growth rates for the main European countries with an extended version of the Solow (1956) growth model. Total factor productivity is assumed a function of human capital, trade openness and investment ratio. We show that these factors, with some differences, have played an important role to improve the long run growth rates of Italy, Spain, France, UK, and Ireland. A few policies to improve the long-run growth rates for these countries are suggested.

Suggested Citation

  • Casadio, Paolo & Paradiso, Antonio & Rao, B. Bhaskara, 2012. "Estimates of the steady state growth rates for some European countries," Economic Modelling, Elsevier, vol. 29(4), pages 1119-1125.
    • Handle: RePEc:eee:ecmode:v:29:y:2012:i:4:p:1119-1125
    DOI: 10.1016/j.econmod.2012.03.018
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    Cited by:

    1. Arusha Cooray & Antonio Paradiso, 2012. "The level and growth effects in empirical growth models for the Nordic countries: A knowledge economy approach," CAMA Working Papers 2012-36, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    2. Arusha Cooray & Marcella Lucchetta & Antonio Paradiso, 2013. "A knowledge economy approach in empirical growth models for the Nordic countries," Economics Working Papers wp13-06, School of Economics, University of Wollongong, NSW, Australia.
    3. Richard Ssempala & Kurayish Ssebulime & Enoch Twinoburyo, 2020. "Uganda’s experience with debt and economic growth: an empirical analysis of the effect of public debt on economic growth—1980–2016," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-18, December.
    4. Muvawala, Joseph & Sebukeera, Hennery & Ssebulime, Kurayish, 2021. "Socio-economic impacts of transport infrastructure investment in Uganda: Insight from frontloading expenditure on Uganda's urban roads and highways," Research in Transportation Economics, Elsevier, vol. 88(C).
    5. Cooray, Arusha & Paradiso, Antonio & Truglia, Francesco Giovanni, 2013. "Do countries belonging to the same region suggest the same growth enhancing variables? Evidence from selected South Asian countries," Economic Modelling, Elsevier, vol. 33(C), pages 772-779.
    6. Dilian Vassilev, 2021. "A Model of Natural Interest Rate: The Case of Bulgaria," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 7, pages 46-72.

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    More about this item

    Keywords

    Extended Solow growth model; Trade openness; Human capital; Investment ratio; Steady state growth rate; European countries;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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