More documents from Romero-Avila, Diego
More documents from Applied Economics

Export to your Reference Manger

Please Copy & Paste



Bookmark and Share

Productive investment and growth : testing the validity of the AK model from a panel perspective

[journal article]

Romero-Avila, Diego

fulltextDownloadDownload full text

(783 KByte)

Citation Suggestion

Please use the following Persistent Identifier (PID) to cite this document:

Further Details
Abstract In this paper, we analyse the relationship between productive physical investment and economic growth from a panel perspective for a sample of 61 countries spanning the period 1950-1992. The analysis can be thought of as two-fold. First, we test the empirical validity of AK models following the logic by Jones (1995). For that purpose, we determine the degree of persistence of physical investment rates and growth by employing recently developed panel unit roots tests which enable us to make more reliable inferences about the existence of stochastic trends in the series. Second, we estimate the long-run effect of physical investment on growth by using panel data techniques rather than cross-section regressions. Overall, our findings cast doubts on the rejection of the empirical validity of the AK model as suggested by Jones’ analysis.
Keywords economic growth; theory; estimation; panel; OECD; investment
Classification Political Economy; Economic Statistics, Econometrics, Business Informatics
Free Keywords Panel Unit Root Tests; Endogenous Growth; Physical Investment
Document language English
Publication Year 2009
Page/Pages p. 3027-3043
Journal Applied Economics, 41 (2009) 23
Status Postprint; peer reviewed
Licence PEER Licence Agreement (applicable only to documents from PEER project)