Kaldor-Verdoorn’s law and increasing returns to scale: a comparison across developed countries
AbstractThe object of this study is to investigate the validity of the Kaldor-Verdoorn’s Law in explaining the long run determinants of the labor productivity growth for the manufacturing sector of some developed economies (Western European Countries, Australia, Canada, Japan and United States). We consider the period 1973-2006 using data provided by the European Commission - Economics and Financial Affairs. Our findings suggest that the law is valid for the manufacturing of Italy, US, Belgium and Australia. Capital growth and labor cost growth do not appear relevant in explaining productivity growth. The estimated Verdoorn coefficients are found to be stable throughout the period.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 30941.
Date of creation: 23 Oct 2010
Date of revision:
increasing returns; Kaldor-Verdoorn law; productivity growth; manufacturing sector;
Other versions of this item:
- Emanuele Millemaci & Ferdinando Ofria, 2012. "Kaldor-Verdoorn's Law and Increasing Returns to Scale: A Comparison Across Developed Countries," Working Papers 2012.92, Fondazione Eni Enrico Mattei.
- C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
- O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-05-30 (All new papers)
- NEP-EFF-2011-05-30 (Efficiency & Productivity)
- NEP-FDG-2011-05-30 (Financial Development & Growth)
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