Discussion Paper

No. 2008-27 | September 10, 2008
The New Growth Theories and Their Empirics after Twenty Years

Abstract

In this work we update the reviews on endogenous growth theories, after two decades of theoretical and empirical contributions in order to explore whether recent empirical studies have become more supportive of their main predictions. Among the core topics studied in the growth econometric framework, namely, convergence, identification of growth determinants and factors responsible for growth differences in the data, the primary focus of this paper is on the last two. We will review, from macro growth regressions, studies that test primarily the performance of endogenous models in terms of significance and robustness of the coefficients of growth determinants. By highlighting methodological issues and critical discussion, we argue that: (i) causal inference drawn from the empirical growth literature remains highly questionable, (ii) there are estimates for a wide range of potential factors but their magnitude and robustness are still under debate. Our conclusion, however, is that, if properly interpreted, the predictions of endogenous growth models are increasingly gathering empirical support.

Submitted as Survey and Overview

 

JEL Classification

C31 O41 O47

Cite As

Rosa Capolupo (2008). The New Growth Theories and Their Empirics after Twenty Years. Economics Discussion Papers, No 2008-27, Kiel Institute for the World Economy. http://www.economics-ejournal.org/economics/discussionpapers/2008-27

Assessment



Comments and Questions


Anonymous - Comments
September 13, 2008 - 02:07

see attached


Rosa Capolupo - Reply to Comment
October 29, 2008 - 17:00

see attached file


John Seater - Capolupo review of New Growth empirics
October 20, 2008 - 22:09

See pdf file.


Rosa Capolupo - Reply to Comment
October 29, 2008 - 17:04

see attached file


Anonymous - Referee Report
November 10, 2008 - 10:33

see attached file


Rosa Capolupo - Reply to Referee Report
January 09, 2009 - 09:58

see attached file