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Do poor countries tend to grow faster than rich countries?

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  • V. V. Bhanoji Rao
  • Shandre Mugan Thangavelu

Abstract

The observation by Barro that cross-country evidence is inconsistent with the hypothesis that poor countries tend to grow faster than rich countries is examined. The overall sample of countries employed in the Barro studies is adjusted by excluding those with small sample sizes (less than 15 observations) and/or those with not statistically significant trend growth rates. It is found that, in general, poor countries tend to grow faster than rich countries. However, this observation holds especially strongly for 17 countries with real per capita product above $1000.

Suggested Citation

  • V. V. Bhanoji Rao & Shandre Mugan Thangavelu, 2000. "Do poor countries tend to grow faster than rich countries?," Applied Economics Letters, Taylor & Francis Journals, vol. 7(10), pages 629-632.
    • Handle: RePEc:taf:apeclt:v:7:y:2000:i:10:p:629-632
    DOI: 10.1080/135048500415905
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    References listed on IDEAS

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    1. Robert J. Barro, 1998. "Determinants of Economic Growth: A Cross-Country Empirical Study," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262522543, September.
    2. Robert J. Barro, 1991. "Economic Growth in a Cross Section of Countries," The Quarterly Journal of Economics, Oxford University Press, vol. 106(2), pages 407-443.
    3. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 70(1), pages 65-94.
    4. David Cass, 1965. "Optimum Growth in an Aggregative Model of Capital Accumulation," Review of Economic Studies, Oxford University Press, vol. 32(3), pages 233-240.
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    Cited by:

    1. Greco, 2001. "Exportaciones no Tradicionales de Colombia," Borradores de Economia 170, Banco de la Republica de Colombia.
    2. Alvargonzalez, M. & Lopez, A. & Perez, R., 2004. "Growth-Inequality Relationship. An Analytical Approach and Some Evidence for Latin America," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 4(2).

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