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Endogenous Growth Theory: Intellectual Appeal and Empirical Shortcomings

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  • Howard Pack

Abstract

This paper examines whether the recent theoretical insights stemming from endogenous growth theory have provided a better guide to explaining actual growth experience than the neoclassical model. The paper considers the available empirical evidence on a number of related subjects, including the slowing of growth in the OECD countries over the last two decades; the acceleration of growth in several Asian countries since the early 1960s; studies of the determinants of growth in a cross-country context; and sources of the differences in international productivity levels. It concludes that the empirical confirmation, so far, of endogenous growth theory is limited.

Suggested Citation

  • Howard Pack, 1994. "Endogenous Growth Theory: Intellectual Appeal and Empirical Shortcomings," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 55-72, Winter.
  • Handle: RePEc:aea:jecper:v:8:y:1994:i:1:p:55-72
    Note: DOI: 10.1257/jep.8.1.55
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    File URL: http://www.aeaweb.org/articles.php?doi=10.1257/jep.8.1.55
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    References listed on IDEAS

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    JEL classification:

    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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