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

Steve Bond, Asli Leblebicioglu () and Fabio Schiantarelli ()
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Steve Bond: Nuffield College, Oxford and IFS

No 1174, IZA Discussion Papers from Institute for the Study of Labor (IZA)

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-dev
Date: 2004-06
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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 (2007)
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