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Pair-wise cointegration in long-run growth models

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  • Bergheim, Stefan

Abstract

This paper presents a novel theoretical and empirical approach to the analysis of long-run economic growth. It shows that most traditional theoretical models share the feature of pair-wise cointegration among the main variables. An augmented Kaldor model is proposed in contrast to the standard production function. The empirical analysis employs non- stationary panel techniques on two groups of countries to show that pair- wise cointegration exists among GDP, physical capital, human capital, and trade openness.

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  • Bergheim, Stefan, 2007. "Pair-wise cointegration in long-run growth models," Research Notes 24, Deutsche Bank Research.
    • Handle: RePEc:zbw:dbrrns:24
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