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Empirical Evidence for the Endogenous Growth Generated by Evolution in Division of Labor

Author

Listed:
  • Chen, B.-L.
  • Lin, C.-F. J.
  • Yang, X.

Abstract

Following up the empirical works of Jones (1995a,b) that reject two classes of the major endogenous growth models: the AK models and R&D based models, the paper tests the third class of endogenous growth models that generate endogenous evolution in division of labor against empirical data. It is shown that this class of endogenous growth models not only avoid scale effects, but also accommodate both convergence and divergence phenomena. One of the hypotheses generated by this class of endogenous growth models is that the divergence phenomenon takes place first between each pair of economies that enter the take off stage at different points in time, then the convergence phenomenon follows. This implies that the difference in per capita real income between the two economies is an inverse U shape curve. The empirical data strongly support the hypothesis.

Suggested Citation

  • Chen, B.-L. & Lin, C.-F. J. & Yang, X., 1999. "Empirical Evidence for the Endogenous Growth Generated by Evolution in Division of Labor," Papers 671, Harvard - Institute for International Development.
    • Handle: RePEc:fth:harvid:671
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    Cited by:

    1. Hasan Bicak & Glenn Jenkins, 1999. "Costs And Pricing Policies Related To Transporting Water By Tanker From Turkey To North Cyprus," Development Discussion Papers 1999-07, JDI Executive Programs.

    More about this item

    Keywords

    ECONOMIC GROWTH ; EVOLUTION ; LABOUR;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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