Abstract
Do long-run growth rates among the developed countries (DCs) depend on country characteristics, or is there on overall long-run growth pattern that dominates the effects of country differences? This paper empirically tests this question. The test involves regressing the pooled sample of their growth rates on dummy variables for the various countries. The test uses Maddison [1991] that provides data for annual estimates for real per capita product for 16 DCs from 1870–1989. Regressors were added for relative per capita product, the time trends of growth, and unusual time periods. The results suggest that country characteristics explain very little of the differences in growth rates. General factors, the tendency of lower per capita developed countries to grow faster, and the time patterns of growth among the DCs explain much more of the differences in growth rates.
Similar content being viewed by others
References
Barro, R.; Sala-i-Martin, X. "Convergence",Journal of Political Economy, 100, 2, 1992, pp. 223–51.
De Long, Bradford. "Productivity Growth, Convergence and Welfare: Comment."American Economic Review, 78, 1988, pp. 1138–54.
Economist. "Oriental Renaissance: A Survey of Japan",The Economist, July, 9, 1994.
Kuznets, S.Economic Growth of Nations: Total Output and Production Structure, Cambridge: Harvard U. Press, 1971.
Landau, D. "Government Expenditure and Economic Growth: A Cross-Country Study."Southern Economic Journal, 49, 1983, pp. 783–92.
Leff, N.; Sato, K. "Homogeneous Preferences and Heterogeneous Growth Performance: International Differences in Saving and Investment Behavior."Kyklos, 46, 2, 1993, pp. 203–23.
Maddison, A.Dynamic Forces in Capitalist Development, New York: Oxford University Press, 1991.
Organization for Economic Cooperation and Development,Quarterly National Accounts, Paris: OECD, various years.
Summers, R.; Heston, A. "A New Set of International Comparisons of Real Product and Price Levels: Estimates for 130 Countries, 1950–1985,"Review of Income & Wealth, 34, 1988, pp. 1–25.
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
Landau, D. Do country characteristics matter for economic growth among the developed countries?. Atlantic Economic Journal 23, 113–121 (1995). https://doi.org/10.1007/BF02300436
Issue Date:
DOI: https://doi.org/10.1007/BF02300436