 A Production Function Explanation of Irish Economic Growth 1951-1984Mahmud Sadeg
Economics Technical Papers from Trinity College Dublin, Economics Department Abstract: This paper provides a first attempt at an explanation of Irish economic growth along the lines proposed by the neo-classical growth theory. Production function estimates for gross domestic product are provided using both Cobb-Douglas and constant elasticity of substitution production functions. A wide range of econometric testing is employed and an error correction mechanism is used to investigate the long-run property of the estimated equation. Both functional forms are estimated using a constant and variant forms of technical progress, and under the assumption of constant and variant returns to scale. Statistical tests show an error correction model is possible only in the case of the Cobb-Douglas production function however the tests illustrate the superiority of the unrestricted Cobb-Douglas production function with the constant rate of technical progress. The result shows an elasticity of output with respect to capital and labour of about 0.34 and 0.67 respectively. Technical progress have a positive contribution to growth rate of output of 1.7% a year. JEL-codes: O41 O49 (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:tcd:tcduet:962 Access Statistics for this paper More papers in Economics Technical Papers from Trinity College Dublin, Economics Department Contact information at EDIRC. |
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