 An Econometric Analysis of the Impact of Real Wages on Economic Growth in OECD Countries using the ARDL-PMG Model (2002-2022)Kettaf Hamza ()
Economic and Regional Studies / Studia Ekonomiczne i Regionalne, 2025, vol. 18, issue 2, 177-189 Abstract: Subject and purpose of work This study aimed to analyze the impact of real wages, human capital, and public expenditure as a percentage of Gross Domestic Product (GDP) on economic growth in six Organization for Economic Co-operation and Development (OECD) countries over the period (2002-2022). Materials and methods The Panel ARDL model using PMG estimation was employed to test short- and long-term relationships among the variables. Results It was found that real wages have a negative and significant impact on long-term economic growth, while human capital has a positive and significant impact. Public expenditure as a percentage of GDP showed a negative but insignificant impact in the long term. Conclusions The studies’ results show that real wages have a prominent role in determining the economic growth rate within the OECD countries. Moreover, the research reveals that the governmental expenditure is a very important factor in stimulating the economic growth. Keywords: Real wages; Human capital; Public expenditure; Economic growth; Panel ARDL (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:vrs:ecoreg:v:18:y:2025:i:2:p:177-189:n:1005 Access Statistics for this article Economic and Regional Studies / Studia Ekonomiczne i Regionalne is currently edited by Mieczysław Adamowicz More articles in Economic and Regional Studies / Studia Ekonomiczne i Regionalne from Sciendo |
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