A New Interpretation of Kaldor's First Growth Law for Open Developing Countries
AbstractKaldor’s first law of growth posits a positive causal relation between the growth of manufacturing output and the growth of GDP due to static and dynamic returns to scale in manufacturing and rising productivity outside the manufacturing sector as resources are transferred from diminishing returns activities. In an open economy, however, the Kaldor first law of growth is open to another interpretation because it is apparent across countries that there is a close association between manufacturing output growth and export growth, and between export growth and GDP growth. Results are presented for 89 developing countries over the period 1990-2011, also distinguishing between low income, lower-middle income and upper-middle income countries, and between the continents of Africa, Asia and Latin America.
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Bibliographic InfoPaper provided by Department of Economics, University of Kent in its series Studies in Economics with number 1312.
Date of creation: Aug 2013
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Find related papers by JEL classification:
- C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
- E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian
- F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-08-10 (All new papers)
- NEP-DEV-2013-08-10 (Development)
- NEP-FDG-2013-08-10 (Financial Development & Growth)
- NEP-LAM-2013-08-10 (Central & South America)
- NEP-PKE-2013-08-10 (Post Keynesian Economics)
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"Balance of Payments Constrained Growth Models: History and Overview,"
Studies in Economics
1111, Department of Economics, University of Kent.
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- Anthony Thirlwall, 2011. "Economics of Development," Economics, Palgrave Macmillan, edition 9, number 1, May.
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