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The Empirics of the Solow Growth Model: Long-Term Evidence

Author

Listed:
  • Milton Barossi-Filho

    (Faculdade de Economia, Administração e Contabilidade de Ribeirão Preto)

  • Ricardo Gonçalves Silva

    (Faculdade de Economia, Administração e Contabilidade de Ribeirão Preto)

  • Eliezer Martins Diniz

    (Faculdade de Economia, Administração e Contabilidade de Ribeirão Preto)

Abstract
The purpose of this paper is to reassess the standard Solow growth model,using a dynamic panel data approach. A new methodology is chosen to deal with this problem. First, unit root tests for individual country time series were run. Second, panel data unit root and cointegration tests were performed. Finally, the panel cointegration dynamics is estimated by DOLS method. The resulting evidence supports roughly one- third capital share in income.

Suggested Citation

  • Milton Barossi-Filho & Ricardo Gonçalves Silva & Eliezer Martins Diniz, 2004. "The Empirics of the Solow Growth Model: Long-Term Evidence," GE, Growth, Math methods 0406001, University Library of Munich, Germany, revised 08 Oct 2005.
    • Handle: RePEc:wpa:wuwpge:0406001
    Note: Type of Document - pdf; pages: 24
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    References listed on IDEAS

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    Cited by:

    1. Max Kohler & Stefan Sperlich, 2019. "The Africa-Dummy: Gone with the Millennium?," Papers 1903.02357, arXiv.org.
    2. Murach, Michael & Wagner, Helmut & Kim, Jungsuk & Park, Donghyun, 2022. "Trajectories to high income: Comparing the growth dynamics in China, South Korea, and Japan with cointegrated VAR models," Structural Change and Economic Dynamics, Elsevier, vol. 62(C), pages 492-511.
    3. Claude DIEBOLT & Tapas MISHRA & Mamata PARHI, 2015. "A "Jump" in the Stochasticity of the Solow-Swan Growth Model," Economies et Sociétés (Serie 'Histoire Economique Quantitative'), Association Française de Cliométrie (AFC), issue 50, pages 905-917, Juin.
    4. Edwards, Jeffrey A. & Kasibhatla, Krishna, 2009. "Dynamic heterogeneity in cross-country growth relationships," Economic Modelling, Elsevier, vol. 26(2), pages 445-455, March.
    5. Juchem Neto, J.P. & Claeyssen, J.C.R. & Pôrto Júnior, S.S., 2018. "Economic agglomerations and spatio-temporal cycles in a spatial growth model with capital transport cost," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 494(C), pages 76-86.
    6. Luis A. Quezada-Téllez & Guillermo Fernández-Anaya & Dominique Brun-Battistini & Benjamín Nuñez-Zavala & Jorge E. Macías-Díaz, 2021. "An Economic Model for OECD Economies with Truncated M -Derivatives: Exact Solutions and Simulations," Mathematics, MDPI, vol. 9(15), pages 1-14, July.
    7. Ng, Choy Peng & Law, Teik Hua & Wong, Shaw Voon & Kulanthayan, S., 2017. "Relative improvements in road mobility as compared to improvements in road accessibility and economic growth: A cross-country analysis," Transport Policy, Elsevier, vol. 60(C), pages 24-33.
    8. Murach, Michael & Wagner, Helmut & Kim, Jungsuk & Park, Donghyun, 2020. "Trajectories to high income: comparing the growth dynamics in China, Korea, and Japan with cointegrated VAR models," CEAMeS Discussion Paper Series 16/2020, University of Hagen, Center for East Asia Macro-economic Studies (CEAMeS).
    9. Berthold, Norbert & Gründler, Klaus, 2012. "Entrepreneurship and economic growth in a panel of countries," Discussion Paper Series 118, Julius Maximilian University of Würzburg, Chair of Economic Order and Social Policy.
    10. Bas Van Leeuwen & Peter Foldvari, 2008. "Human Capital and Economic Growth in Asia 1890–2000: A Time‐series Analysis," Asian Economic Journal, East Asian Economic Association, vol. 22(3), pages 225-240, September.

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    More about this item

    Keywords

    Economic growth; panel data; unit root; cointegration and convergence;
    All these keywords.

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection

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