Economic Growth and Verdoorn's Law in the Spanish Regions, 1962-1991
The aim of this paper is to test for the presence of dynamic increasing returns to scale in Spanish regional growth between 1962 and 1991. The theoretical framework within which this paper is based is the so-called Verdoorn's Law. Tests of the law are performed not only for the manufacturing sector but also for agriculture, construction, services and total value added. The results show substantial increasing returns for manufacturing for the services sector and for total value added. The static-dynamic paradox found by McCombie (1982) is also discussed and tested. We find no support for the hypothesis of a Cobb-Douglas as the underlying technical relationship of the law.
|Date of creation:||Jan 1998|
|Date of revision:|
|Publication status:||Forthcoming in International Review of Applied Economics, 2000|
|Contact details of provider:|| Postal: School of Economics, University of Kent, Canterbury, Kent, CT2 7NP|
Phone: +44 (0)1227 827497
Web page: http://www.kent.ac.uk/economics/
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- Dixon, R & Thirlwall, A P, 1975. "A Model of Regional Growth-Rate Differences on Kaldorian Lines," Oxford Economic Papers, Oxford University Press, vol. 27(2), pages 201-14, July.
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- McCombie, J S L, 1991. "The Productivity Growth Slowdown of the Advanced Countries and the Inter-sectoral Reallocation of Labour," Australian Economic Papers, Wiley Blackwell, vol. 30(56), pages 70-85, June.
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