Spatial dependence and Kaldor's laws: Evidence for the European regions
In this paper we provide an outline of Kaldor's growth model and tests its relevance to the economic experience of European regions during the 1984-1992 period. The Kaldor's first law asserts that manufacturing is the engine of economic growth. The second proposition, also known as Verdoorn's law, states that there is a strong positive relation between the productivity growth in manufacturing and the output growth of manufacturing. The third law suggests that overall productivity growth is positively related to output growth in manufacturing and negatively related to the employment of non manufacturing sectors. The empirical results, corrected for the presence of spatial autocorrelation, indicates that Kaldor's second and third laws are compatible with the economic growth of European regions during the period 1984-1992. Keywords: Kaldor's laws, regional economics, spatial autocorrelation
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Drakopoulos, Stavros & Theodossiou, Ioannis, 1991. "Kaldorian Approach to Greek Economic Growth," MPRA Paper 48989, University Library of Munich, Germany.
- 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.
When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa98p55. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gunther Maier)
If references are entirely missing, you can add them using this form.