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The empirics of the Solow Growth Model: Long-term evidence

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  • Barossi-Filho, Milton
  • Goncalves Silva, Ricardo
  • Diniz, Eliezer Martins

Abstract

In this paper we reassess the standard Solow growth model, using a dynamic panel data approach. A new methodology is chosen to deal with this problem. First, unit root tests for individual country time series were run. Second, panel data unit root and cointegration tests were performed. Finally, the panel cointegration dynamics is estimated by (DOLS) method. The resulting evidence supports roughly one-third capital share in income, a.

Suggested Citation

  • Barossi-Filho, Milton & Goncalves Silva, Ricardo & Diniz, Eliezer Martins, 2005. "The empirics of the Solow Growth Model: Long-term evidence," Journal of Applied Economics, Universidad del CEMA, vol. 8(1), pages 1-21, May.
    • Handle: RePEc:ags:jaecon:37227
    DOI: 10.22004/ag.econ.37227
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    References listed on IDEAS

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    2. Lee, Junsoo & Strazicich, Mark C, 2001. "Break Point Estimation and Spurious Rejections with Endogenous Unit Root Tests," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 63(5), pages 535-558, December.
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    Cited by:

    1. Max Kohler & Stefan Sperlich, 2019. "The Africa-Dummy: Gone with the Millennium?," Papers 1903.02357, arXiv.org.
    2. Murach, Michael & Wagner, Helmut & Kim, Jungsuk & Park, Donghyun, 2022. "Trajectories to high income: Comparing the growth dynamics in China, South Korea, and Japan with cointegrated VAR models," Structural Change and Economic Dynamics, Elsevier, vol. 62(C), pages 492-511.
    3. Claude DIEBOLT & Tapas MISHRA & Mamata PARHI, 2015. "A "Jump" in the Stochasticity of the Solow-Swan Growth Model," Economies et Sociétés (Serie 'Histoire Economique Quantitative'), Association Française de Cliométrie (AFC), issue 50, pages 905-917, Juin.
    4. Murach, Michael & Wagner, Helmut & Kim, Jungsuk & Park, Donghyun, 2020. "Trajectories to high income: comparing the growth dynamics in China, Korea, and Japan with cointegrated VAR models," CEAMeS Discussion Paper Series 16/2020, University of Hagen, Center for East Asia Macro-economic Studies (CEAMeS).
    5. Edwards, Jeffrey A. & Kasibhatla, Krishna, 2009. "Dynamic heterogeneity in cross-country growth relationships," Economic Modelling, Elsevier, vol. 26(2), pages 445-455, March.
    6. Berthold, Norbert & Gründler, Klaus, 2012. "Entrepreneurship and economic growth in a panel of countries," Discussion Paper Series 118, Julius Maximilian University of Würzburg, Chair of Economic Order and Social Policy.
    7. Juchem Neto, J.P. & Claeyssen, J.C.R. & Pôrto Júnior, S.S., 2018. "Economic agglomerations and spatio-temporal cycles in a spatial growth model with capital transport cost," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 494(C), pages 76-86.
    8. Bas Van Leeuwen & Peter Foldvari, 2008. "Human Capital and Economic Growth in Asia 1890–2000: A Time‐series Analysis," Asian Economic Journal, East Asian Economic Association, vol. 22(3), pages 225-240, September.
    9. Luis A. Quezada-Téllez & Guillermo Fernández-Anaya & Dominique Brun-Battistini & Benjamín Nuñez-Zavala & Jorge E. Macías-Díaz, 2021. "An Economic Model for OECD Economies with Truncated M -Derivatives: Exact Solutions and Simulations," Mathematics, MDPI, vol. 9(15), pages 1-14, July.

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