Capital Accumulation and Growth: A New Look at the Empirical Evidence

Stephen Roy Bond, Asli Leblebicioglu () and Fabio Schiantarelli ()

No 591, Boston College Working Papers in Economics from Boston College Department of Economics

Abstract: We present evidence that an increase in investment as a share of GDP predicts a higher growth rate of output per worker, not only temporarily, but also in the steady state. These results are found using pooled annual data for a large panel of countries, using pooled data for non-overlapping five-year periods, or allowing for heterogeneity across countries in regression coefficients. They are robust to model specifications and estimation methods. The evidence that investment has a long-run effect on growth rates is consistent with the main implication of certain endogenous growth models, such as the AK model.

Keywords: growth; capital accumulation; investment (search for similar items in EconPapers)
JEL-codes: C23 E22 O40 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cwa, nep-dev, nep-mac and nep-mfd
Date: 2004-03-16, Revised 2007-08-02
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Related works:
Working Paper: Capital Accumulation and Growth: A New Look at the Empirical Evidence (2004)
Working Paper: Capital Accumulation and Growth: A New Look at the Empirical Evidence (2004)
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Persistent link: http://EconPapers.repec.org/RePEc:boc:bocoec:591

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