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Endogenous Growth Theory: Intellectual Appeal and Empirical Shortcomings
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Endogenous Growth Theory: Intellectual Appeal and Empirical Shortcomings
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Journal Article
Endogenous Growth Theory: Intellectual Appeal and Empirical Shortcomings
1994
Overview
This paper examines whether the recent theoretical insights stemming from endogenous growth theory have provided a better guide to explaining actual growth experience than the neoclassical model. The paper considers the available empirical evidence on a number of related subjects, including the slowing of growth in the OECD countries over the last two decades; the acceleration of growth in several Asian countries since the early 1960s; studies of the determinants of growth in a cross-country context; and sources of the differences in international productivity levels. It concludes that the empirical confirmation, so far, of endogenous growth theory is limited.
