A panel granger-causality test of endogenous vs. exogenous growth

Arbeitspapier

The paper proposes a new test of endogenous vs. exogenous growth theories based on the Granger-causality methodology and applies it to a panel of 20 OECD countries. The test yields divergent evidence with respect to physical and human capital. For physical capital, the test results favor Solow-type exogenous growth theory over AK-type endogenous growth models. On the other hand, the test results lend support to human capital oriented endogenous growth models - like the Uzawa-Lucas model - rather than to the human capital augmented Solow model.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: KOF Working Papers ; No. 231

Classification and Topics

• Classification: Wirtschaft ; Hypothesis Testing: General ; Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models ; One, Two, and Multisector Growth Models
• Subject: Exogenous growth ; endogenous growth ; panel Granger-causality tests ; Neue Wachstumstheorie ; Solow-Modell ; Panel ; Kausalanalyse ; OECD-Staaten

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Hartwig, Jochen
• Event: Veröffentlichung
• (who): ETH Zurich, KOF Swiss Economic Institute
• (where): Zurich
• (when): 2009

Further information

• DOI: doi:10.3929/ethz-a-005861211
• Handle: http://hdl.handle.net/10419/50437
• Last update: 10.03.2025, 11:45 AM CET