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The Empirics of Economic Growth and Industrialization Using Growth Identity Equation

Author

Listed:
  • Tung Liu

    (Department of Economics, Ball State University)

  • Kui-Wai Li

    (Department of Economics and Finance, City University of Hong Kong)

Abstract

This study examines the determinants of economic growth and industrialization based on the Growth Identity Equation. This identity links total output growth with the performance of the three economic sectors (agriculture, industry and services) measured by their sectorial rates of output growth and weighted by each sector’s output share in GDP. Using the data from 164 countries from 1970 to 2010 our study examines and explains economic growth and industrialization with economic, institutional, and other variables. We identify the causal variables for industrialization that are reflected in the structural shifts of the output ratios in the three sectors.

Suggested Citation

  • Tung Liu & Kui-Wai Li, 2015. "The Empirics of Economic Growth and Industrialization Using Growth Identity Equation," Working Papers 201501, Ball State University, Department of Economics, revised Jun 2015.
    • Handle: RePEc:bsu:wpaper:201501
    as

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    References listed on IDEAS

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    Cited by:

    1. Amat Adarov & Mario Holzner & Luka Sikic, 2016. "Backwardness, Industrialisation and Economic Development in Europe," wiiw Balkan Observatory Working Papers 123, The Vienna Institute for International Economic Studies, wiiw.

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    More about this item

    Keywords

    Economic growth; industrialization; economic development; world economy; economic sectors; Growth Identity Equation;
    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
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General

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