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Research Article
Capital accumulation and growth: a new look at the empirical evidence
Article first published online: 24 JUN 2010
DOI: 10.1002/jae.1163
Copyright © 2010 John Wiley & Sons, Ltd.
Additional Information
How to Cite
Bond, S., Leblebicioǧlu, A. and Schiantarelli, F. (2010), Capital accumulation and growth: a new look at the empirical evidence. J. Appl. Econ., 25: 1073–1099. doi: 10.1002/jae.1163
Publication History
- Issue published online: 17 NOV 2010
- Article first published online: 24 JUN 2010
- Manuscript Revised: 29 JAN 2009
- Manuscript Received: 2 AUG 2007
Funded by
- ESRC. Grant Number: RES-156-25-0006
Abstract
Using annual data for 75 countries in the period 1960–2000, we present evidence of a positive relationship between investment as a share of gross domestic product (GDP) and the long-run growth rate of GDP per worker. This result is robust for our full sample and for the subsample of non-OECD countries, but not for the subsample of OECD countries. Our analysis controls for time-invariant country-specific heterogeneity in growth rates, and for a range of time-varying control variables. We also address endogeneity issues, and allow for heterogeneity across countries in model parameters and for cross-section dependence. Copyright © 2010 John Wiley & Sons, Ltd.