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Kaldor's Laws and Spatial Dependence: Evidence for the European Regions

Listed author(s):
  • Jordi Pons-Novell
  • Elisabet Viladecans-Marsal

PONS-NOVELL J. and VILADECANS-MARSAL E. (1999) Kaldor's laws and spatial dependence: evidence for the European regions, Reg. Studies 33, 443-451. In this paper we provide an outline of Kaldor's growth model and test its relevance to the economic experience of European regions during the period 1984-92. Kaldor's first law asserts that manufacturing is the engine of economic growth. His second proposition, also known as Verdoorn's law, states that there is a strong positive relation between manufacturing productivity growth and manufacturing output growth. Kaldor's third law holds that overall productivity growth is positively related to manufacturing output growth, and negatively related to employment in non-manufacturing sectors. The empirical results, corrected for the presence of spatial autocorrelation, indicate that Kaldor's second and third laws are compatible with the economic growth of European regions during the period 1984-92. PONS-NOVELL J. et VILADECANS-MARSAL E. (1999) Les lois de Kaldor et la dependance geographique: des preuves provenant des regions europeennes, Reg. Studies 33, 443-451. Cet article fournit une esquisse du modele de croissance de Kaldor et evalue sa pertinence pour l'experience economique des regions europeennes de 1984 a 1992. La premie ¤ re loi de Kaldor affirme que l'industrie est le moteur de la croissance economique. La deuxieme loi, connue aussi sous le nom de la loi de Verdoorn, affirme que la croissance de la productivite industrielle est en correlation positive avec la croissance de la production industrielle. La troisieme loi de Kaldor affirme que la croissance globale de la productivite est en correlation positive avec la croissance de la production industrielle et en correlation negative avec l'emploi dans les secteurs hors de l'industrie. Les resultats empiriques, corriges pour autocorrelation spatiale, montrent que les deuxieme et troisieme lois de Kaldor sont compatibles avec la croissance economique des regions europeennes de 1984 a 1992. PONS-NOVELL J. und VILADECANS-MARSAL E. (1999) Kaldors Gesetze und raumliche Abha ¨ngigkeit: Beweise fur die europaischen Regionen, Reg. Studies 33, 443-451. Mit dem vorliegenden Aufsatz stellen die Autoren eine Ubersicht uber Kaldors Wachstumsmodell vor, und prufen seine Relevanz fur die Wirtschaftserfahrungen der europaischen Regionen im Zeitraum 1984-1992. Kaldors erstes Gesetz behauptet, Herstellung sei das Zugpferd wirtschaftlichen Wachstums. Seine zweite Aussage, die auch unter der Bezeichnung Verdoorns Gesetz bekannt ist, stellt fest, dass zwischen der Zunahme der Herstellerproduktivitat und dem Anstieg der Ertragsleistung eine durchaus positive Beziehung bestehe. Kaldors drittes Gesetz ist der Ansicht, dass die Gesamtzunahme der Produktivitat sich positiv zum Anstieg der Ertragsleistung verhalt, doch negativ zur Beschaftigung in nicht-herstellenden Sektoren. Die auf das Vorhandensein raumlicher Autokorrelation hin korrigierten, empirischen Ergebnisse deuten darauf hin, dass Kaldors zweites und drittes Gesetz mit dem wirtschaftlichen Wachstum europaischer Regionen im Zeitraum 1984-1992 vereinbar ist.

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Article provided by Taylor & Francis Journals in its journal Regional Studies.

Volume (Year): 33 (1999)
Issue (Month): 5 ()
Pages: 443-451

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Handle: RePEc:taf:regstd:v:33:y:1999:i:5:p:443-451
DOI: 10.1080/00343409950081284
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  1. A. P. Thirlwall, 1983. "A Plain Man's Guide to Kaldor's Growth Laws," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 5(3), pages 345-358, April.
  2. Nancy J. Wulwick, 1991. "Did the Verdoorn Law Hang on Japan," Eastern Economic Journal, Eastern Economic Association, vol. 17(1), pages 15-20, Jan-Mar.
  3. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
  4. Young, Allyn A., 1928. "Increasing Returns and Economic Progress," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 38, pages 527-542.
  5. P Burridge, 1981. "Testing for a Common Factor in a Spatial Autoregression Model," Environment and Planning A, , vol. 13(7), pages 795-800, July.
  6. John S. L. McCombie, 1983. "Kaldor's Laws in Retrospect," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 5(3), pages 414-429, April.
  7. Drakopoulos, Stavros & Theodossiou, Ioannis, 1991. "Kaldorian Approach to Greek Economic Growth," MPRA Paper 48989, University Library of Munich, Germany.
  8. Parikh, A, 1978. "Differences in Growth Rates and Kaldor's Laws," Economica, London School of Economics and Political Science, vol. 45(177), pages 83-91, February.
  9. Paul M. Romer, 1994. "The Origins of Endogenous Growth," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 3-22, Winter.
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