EconPapers    
Economics at your fingertips  
 

Testing Capital Accumulation-Driven Growth Models in a Multiple-Regime Framework: Evidence from South Africa

Kevin Nell () and Maria M. De Mello ()
Additional contact information
Maria M. De Mello: Center for Economics and Finance, University of Porto

CEF.UP Working Papers from Universidade do Porto, Faculdade de Economia do Porto

Abstract: This paper proposes two types of AK-style endogenous growth models to test the physical capital accumulation hypothesis in a ‘typical’ developing country with multiple regimes: a strong version, in which technological progress is fully endogenous to capital accumulation, and a weaker version, where technological progress and capital accumulation are complementary factors in the growth process. The empirical application supports the relevance of the weaker version across South Africa’s ‘faster-growing’ regime (1952-1976) and ‘slower-growing’ regime (1977-2012). To improve the economy’s post-2012 growth performance on a sustainable basis, the simulation exercise suggests a refined set of policies that simultaneously attracts foreign direct investment and raises the domestic saving/investment rate. Thus, to re-ignite the complementary relationship between technological progress and capital accumulation in the South African economy, both sources of growth should feature prominently in the initial decision-making process of policymakers.

Keywords: AK model; multiple regimes, growth transitions, physical capital accumulation; technological progress; foreign direct investment; South Africa; time-series econometrics (search for similar items in EconPapers)
JEL-codes: C22 O11 O41 O47 O55 (search for similar items in EconPapers)
Pages: 48 pages
Date: 2015-04
New Economics Papers: this item is included in nep-gro
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://cefup.fep.up.pt/uploads/WorkingPapers/wp1501a.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://cefup.fep.up.pt/uploads/WorkingPapers/wp1501a.pdf [302 Found]--> https://cefup.fep.up.pt/uploads/WorkingPapers/wp1501a.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:por:cetedp:1501

Access Statistics for this paper

More papers in CEF.UP Working Papers from Universidade do Porto, Faculdade de Economia do Porto Contact information at EDIRC.
Bibliographic data for series maintained by Ana Bonanca ().

 
Page updated 2021-04-28
Handle: RePEc:por:cetedp:1501