Long-Term Growth and Short-Term Economic Instability

Philippe Martin and Carol Rogers ()

No 1281, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: When learning-by-doing is at the origin of growth, we show that growth rates should be negatively related to the amplitude of the business cycle if the growth rate in human capital is increasing and concave in the cyclical component of production. Empirical evidence strongly supports this finding for industrialized countries and European regions. Using the standard control variables, we find that countries and regions that have higher standard deviations of growth and of unemployment have lower growth rates. The result does not come from an effect of instability on investment. The negative relation does not hold for non-industrialized countries, however, for which learning-by-doing may not to be the main engine of growth.

Keywords: Economic Fluctuations; Growth; Learning-by-doing; Short-term Instability (search for similar items in EconPapers)
JEL-codes: E32 O40 (search for similar items in EconPapers)
Date: 1995-11
References: Add references at CitEc
Citations: View citations in EconPapers (49)

Downloads: (external link)
http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=1281 (application/pdf)

Related works:
Journal Article: Long-term growth and short-term economic instability (2000)
Working Paper: Long-term Growth and Short-term Economic Instability (2000)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:1281

Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... ers/dp.php?dpno=1281

Access Statistics for this paper

More papers in CEPR Discussion Papers from Centre for Economic Policy Research 33 Great Sutton Street, London EC1V 0DX, UK.
Bibliographic data for series maintained by CEPR ().