EconPapers    
Economics at your fingertips  
 

The Endogeneity of the Natural Rate of Growth for a Selection of Asian Countries

Mark Dray and Anthony Thirlwall ()

Studies in Economics from School of Economics, University of Kent

Abstract: The paper questions the assumption in all of mainstream growth theory that the Harrod natural rate of growth is exogenously determined and independent of the pressure of demand in an economy. First a simple statistical technique is presented for estimating the natural rate of growth, and then it is shown how it is possible to test for its endogeneity. The model is applied to ten Asian countries, and the results support the conclusions from previous studies of OECD and Latin American countries that the natural rate of growth is elastic to the actual rate of growth working through induced labour supply and productivity growth. Demand matters for economic growth.

Keywords: Demand-led growth; endogenous labour supply and productivity growth; Asia (search for similar items in EconPapers)
JEL-codes: O4 O5 (search for similar items in EconPapers)
Date: 2010-08
New Economics Papers: this item is included in nep-dge and nep-pke
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link)
https://www.kent.ac.uk/economics/repec/1006.pdf (application/pdf)

Related works:
Journal Article: The endogeneity of the natural rate of growth for a selection of Asian countries (2011) Downloads
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:ukc:ukcedp:1006

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Studies in Economics from School of Economics, University of Kent School of Economics, University of Kent, Canterbury, Kent, CT2 7FS.
Bibliographic data for series maintained by Tracey Girling ().

 
Page updated 2021-04-14
Handle: RePEc:ukc:ukcedp:1006