Have countries accumulated enough capital? A non-parametric approach
Barnabé Walheer and
Sousso Bignandi
Applied Economics Letters, 2025, vol. 32, issue 12, 1774-1780
Abstract:
In this paper, we analyse the effect of capital accumulation on economic growth and verify whether countries have accumulated enough capital. We make use of panel data for 92 countries from 1965–2019, combined with intuitive robust non-parametric modelling based on linear programming. Our result indicates first that capital accumulation is important for economic growth. Second, we show that developing countries suffer from under-investment in capital, while developed countries have unexploited capacity. Therefore, to promote sustainable growth, developing countries need to implement policies to increase their capital stock. However, the situation of developed countries indicates that more capital accumulation is not the correct path for these countries, but better capital use is. Finally, we highlight the particular patterns of China and India and challenge our results by running three sensitivity tests. They confirm our early findings.
Date: 2025
References: Add references at CitEc
Citations:
Downloads: (external link)
http://hdl.handle.net/10.1080/13504851.2024.2323139 (text/html)
Access to full text is restricted to subscribers.
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:taf:apeclt:v:32:y:2025:i:12:p:1774-1780
Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEL20
DOI: 10.1080/13504851.2024.2323139
Access Statistics for this article
Applied Economics Letters is currently edited by Anita Phillips
More articles in Applied Economics Letters from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().