Journal Article

No. 2009-1 | February 12, 2009
The New Growth Theories and Their Empirics after Twenty Years PDF Icon
(Published as Survey and Overview)

Abstract

 In this work the author updates the reviews on endogenous growth theories 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. The author 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, she argues 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. Her conclusion, however, is that, if properly interpreted, the predictions of endogenous growth models are gathering increasing empirical support.

JEL Classification

C31 O41 O47

Citation

Rosa Capolupo (2009). The New Growth Theories and Their Empirics after Twenty Years. Economics: The Open-Access, Open-Assessment E-Journal, 3 (2009-1): 1—72. http://dx.doi.org/10.5018/economics-ejournal.ja.2009-1

Assessment

Downloads: 5100 (Journalarticle: 3218, Discussionpaper: 1882)
external link Search this article at Google Scholar



Comments and Questions


Pietro Peretto - Congrats and a minor correction
March 14, 2009 - 02:34

I congratulate the author for this very thorough review. It surely will be useful to many researchers.

One minor correction: My paper with John Seater, "Factor Eliminating Technological Change", is NOT forthcoming in the Journal of Economic Growth.