A hump-shaped transitional growth path as a general pattern in long-run development
Erich Gundlach () and
Economic Systems, 2020, vol. 44, issue 3
Long-run development is defined as the income transition between the traditional and the modern steady state, in which the speed of the transition is low near the two steady states but high and volatile in between them. This transition implies a hump-shaped relation between the level of per capita income and its growth rate. A hump-shaped growth-income path can be simulated with a two-sector growth model, in which the traditional sector is gradually replaced by the modern sector. Kernel regressions reveal a noisy but robust hump-shaped relation between the growth rate and the level of per capita income in stacked cross-country panel data.
Keywords: Long-run development; Transitional growth; Two-sector model; Kernel regressions (search for similar items in EconPapers)
JEL-codes: C49 O41 O47 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:ecosys:v:44:y:2020:i:3:s0939362520301370
Access Statistics for this article
Economic Systems is currently edited by R. Frensch
More articles in Economic Systems from Elsevier Contact information at EDIRC.
Bibliographic data for series maintained by Catherine Liu ().