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A simple cross-section model of economic growth stands the test of time

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  • Sandeep Gupta
  • Paul Sommers

Abstract

The simple three-equation Sommers-Suits model of economic growth published in 1971 was one of the first that used a cross-section approach to study the effects of endogenous population growth rates on economic development. Re-estimation (following the same functional form as in the Sommers-Suits model) suggests that the model has stood the test of time reasonably well. There is evidence of convergence over time (as before), but the re-estimated model indicates the presence of a 'poverty trap'- a threshold GNP per capita below which countries fail to grow.

Suggested Citation

  • Sandeep Gupta & Paul Sommers, 1999. "A simple cross-section model of economic growth stands the test of time," Applied Economics Letters, Taylor & Francis Journals, vol. 6(9), pages 601-603.
  • Handle: RePEc:taf:apeclt:v:6:y:1999:i:9:p:601-603
    DOI: 10.1080/135048599352691
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    1. Vagenas, George & Vlachokyriakou, Eleni, 2012. "Olympic medals and demo-economic factors: Novel predictors, the ex-host effect, the exact role of team size, and the “population-GDP” model revisited," Sport Management Review, Elsevier, vol. 15(2), pages 211-217.

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