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Growth Accounting and Regressions:new approach and results

Author

Listed:
  • Tiago Sequeira
  • Hugo Morão

Abstract

We seek for determinants of the sources of growth. Using a growth accounting method that accounts for time variations in factor shares, we run growth regressions for a panel of 101 countries between 1950 and 2015. Our methodology takes into account the specific features of the data (namely outliers, heterogeneity, and cross panel correlations) and overcomes most criticisms previously raised on growth regressions. The most important evidence reveals that government current expenditure decreases the factor shhares and has no effect on total factor productivity (TFP). Trade affects the TFP and the Biased Technical Chance (BTC) components, decreasing the factor shares. Moreover, human capital decreases TFP and increases the BTC contribution to growth. This unveils the channels through wchich determinants of growth act in influencing economic growth.

Suggested Citation

  • Tiago Sequeira & Hugo Morão, 2020. "Growth Accounting and Regressions:new approach and results," Working Papers REM 2020/0113, ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa.
    • Handle: RePEc:ise:remwps:wp01132020
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    Cited by:

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    2. Chen, Jiabin & Wen, Shaobo & Liu, Yuchen, 2022. "Research on the efficiency of the mining industry in China from the perspective of time and space," Resources Policy, Elsevier, vol. 75(C).
    3. Essotanam Mamba, 2025. "Natural Resource Rents, Manufacturing Trade, and Manufacturing Growth: Evidence from Linear and Nonlinear Regressions for ECOWAS Countries," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 67(1), pages 150-185, March.

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    Keywords

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    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General

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