Endogenous Growth and Country Heterogeneity in Economic Growth: Evidence from Selected OECD Countries
Journal Title: Journal of Empirical Economics - Year 2016, Vol 5, Issue 1
Abstract
Investment in human capital, innovation, and knowledge are significant contributors to economic growth. Theories of economic growth indicate that saving and investment are the main forces of economic growth. Nevertheless, empirical results are not unanimously consistent with theory. In addition, economic growth varies from country to country. Neglected country heterogeneity in cross-country empirical analysis can be spurious. Making empirical contribution, this paper attempts to address the abovementioned problems by empirically testing determinants of economic growth utilizing data from OECD countries. For comparison purposes, selected OECD countries are divided into two groups: richest economies and relatively less rich economies. Results of empirical estimation indicate that lagged investment and lagged saving play a negative role in economic growth. For both richest economies and relatively less rich economies, country heterogeneity influences economic growth.
Authors and Affiliations
Maoguo Wu, Shaokai Huang
Keywords
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