Skip to main content

The endogeneity of the natural rate of growth for a selection of Asian countries

Dray, Mark, Thirlwall, A.P. (2011) The endogeneity of the natural rate of growth for a selection of Asian countries. Journal of Post Keynesian Economics, 33 (3). pp. 451-468. ISSN 0160-3477. (doi:10.2753/PKE0160-3477330303) (The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided)

The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided. (Contact us about this Publication)
Official URL
http://dx.doi.org/10.2753/PKE0160-3477330303

Abstract

This paper questions the assumption in all of mainstream growth theory that the Harrod natural rate of growth is exogenously determined and independent of the pressure of demand in an economy. We first present a simple statistical technique for estimating the natural rate of growth, and then show how it is possible to test for its endogeneity. The model is applied to ten Asian countries, and the results support the conclusions from previous studies of Organisation for Economic Co-operation and Development and Latin American countries that the natural rate of growth is elastic to the actual rate of growth working through induced labor supply and productivity growth. Demand matters for economic growth.

Item Type: Article
DOI/Identification number: 10.2753/PKE0160-3477330303
Uncontrolled keywords: Asia, demand-led growth, endogenous labor supply, productivity growth
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculties > Social Sciences > School of Economics
Depositing User: Lisa Jones
Date Deposited: 12 Jul 2016 13:37 UTC
Last Modified: 08 Feb 2020 04:08 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/56262 (The current URI for this page, for reference purposes)
Thirlwall, A.P.: https://orcid.org/0000-0002-1661-2218
  • Depositors only (login required):