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A Review of Some Postwar Economic Growth Theories and Empirics

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  • Accolley, Delali

Abstract

The evolution of growth theories from the 1956 seminal work of Solow and Swan to Aghion and Howitt’s 1992 Schumpeterian model is traced herein. How growth empirics helped improve some existing theories is also presented. As a matter of fact, the empirical evidence that countries were not converging as the Solow-Swan model predicted led to the development of endogenous growth theories pioneered by Romer (1986) and Lucas (1988). Thereafter, semi-endogenous growth models originated from the observation that growth rate across countries was not proportional to the size of skilled labor as endogenous growth theories predicted. I also present my own empirical assessment of some predictions from growth theories and find supporting evidence of (1) convergence of GDP across Canada and the countries of the West African Economic and Monetary Union and (2) a positive relationship between output and the accumulation of knowledge through R&D across Canada. I also find, in Canada, the evidence of a positive relationship between economic growth and skilled labor, as some model predicted.

Suggested Citation

  • Accolley, Delali, 2015. "A Review of Some Postwar Economic Growth Theories and Empirics," MPRA Paper 69860, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:69860
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    File URL: https://mpra.ub.uni-muenchen.de/69860/9/MPRA_paper_69860.pdf
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    References listed on IDEAS

    as
    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
    2. Philippe Aghion & Diego Comin & Peter Howitt & Isabel Tecu, 2016. "When Does Domestic Savings Matter for Economic Growth?," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 64(3), pages 381-407, August.
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    5. 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.
    6. Paul A. Samuelson, 1958. "An Exact Consumption-Loan Model of Interest with or without the Social Contrivance of Money," Journal of Political Economy, University of Chicago Press, vol. 66, pages 467-467.
    7. Robert M. Solow, 2007. "The last 50 years in growth theory and the next 10," Oxford Review of Economic Policy, Oxford University Press, vol. 23(1), pages 3-14, Spring.
    8. Alvarez-Pelaez, Maria J. & Groth, Christian, 2005. "Too little or too much R&D?," European Economic Review, Elsevier, vol. 49(2), pages 437-456, February.
    9. Philippe Aghion & Peter Howitt, 2009. "The Economics of Growth," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262012634, January.
    10. 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.
    11. Accolley, Delali, 2015. "Altruistic Overlapping Generations of Households and the Contribution of Human Capital to Economic Growth," MPRA Paper 69972, University Library of Munich, Germany.
    12. Miguel-Angel Martín & Agustín Herranz, 2004. "Human capital and economic growth in Spanish regions," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 10(4), pages 257-264, November.
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    More about this item

    Keywords

    Economic Growth; endogenous growth; exogenous growth; growth empirics;

    JEL classification:

    • N1 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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