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Do poor countries tend to grow faster than rich countries?

V. V. Bhanoji Rao and Shandre Mugan Thangavelu
Authors registered in the RePEc Author Service: Bhanoji Rao Vadlamani

Applied Economics Letters, 2000, vol. 7, issue 10, 629-632

Abstract: The observation by Barro that cross-country evidence is inconsistent with the hypothesis that poor countries tend to grow faster than rich countries is examined. The overall sample of countries employed in the Barro studies is adjusted by excluding those with small sample sizes (less than 15 observations) and/or those with not statistically significant trend growth rates. It is found that, in general, poor countries tend to grow faster than rich countries. However, this observation holds especially strongly for 17 countries with real per capita product above $1000.

Date: 2000
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DOI: 10.1080/135048500415905

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