Abstract
In a paper which dealt with the strength of various explanatory variables in cross-country growth regressions, Levine and Renelt (1992) found the (domestic) investment-output ratio to be the most robust variable in explaining the growth of per capita output of developed and developing countries. They also found that the trade amount-output ratio usually affects the investment-output ratio. Combining these two points suggests that the next task would be to examine which is the more forceful variable, between investment and exports, in causing country’s per capita output to grow faster.
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© 2013 Masanori Amano
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Amano, M. (2013). Was It Investment or Exports That Led Economic Growth? 13 Developing Country Experiences. In: Money, Capital Formation and Economic Growth. Palgrave Macmillan, London. https://doi.org/10.1057/9781137281838_9
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DOI: https://doi.org/10.1057/9781137281838_9
Publisher Name: Palgrave Macmillan, London
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