Endogenous growth and economic capacity: Theory and empirical evidence for the NAFTA countries

Ignacio Perrotini-Hernandez () and Juan Alberto Vazquez-Munoz ()
Additional contact information
Ignacio Perrotini-Hernandez: Autonomous National University of Mexico (UNAM)
Juan Alberto Vazquez-Munoz: The Meritorious Autonomous University of Puebla (BUAP)

PSL Quarterly Review, 2017, vol. 70, issue 282, 247-282

Abstract: The paper sheds light on the relevance of economic capacity utilisation, capital accumulation and effective demand for the endogeneity of the natural growth rate with respect to normal, depressive and expansive growth regimes. Apart from contributing to fill this theoretical gap, a new model is developed for estimating the elasticity of the natural growth rate, with a specific focus on Canada, Mexico and the United States, throughout the pre-NAFTA and post-NAFTA periods. It is shown that growth regimes are related to the utilisation of economic capacity, while the elasticities of the expansive and depressive natural rates of growth vis-Ã -vis the normal rate are related to effective demand. It is also found that the normal, depressive and expansive natural rates of growth decreased since the inception of NAFTA, due to the concomitant decline in the growth rate of economic capacity.

Keywords: endogenous growth; empirical studies of economic growth; economic capacity (search for similar items in EconPapers)
JEL-codes: O47 O51 O54 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://ojs.uniroma1.it/index.php/PSLQuarterlyReview/article/view/14006/13761 (application/pdf)

Related works:
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:psl:pslqrr:2017:32

Ordering information: This journal article can be ordered from
http://www.pslquarterlyreview.info

Access Statistics for this article

PSL Quarterly Review is currently edited by Alessandro Roncaglia and Carlo D'Ippoliti

More articles in PSL Quarterly Review from Economia civile
Bibliographic data for series maintained by Carlo D'Ippoliti ().