Capital Accumulation and Growth: A New Look at the Empirical Evidence

By Stephen R. Bond, Aslı Leblebicioğlu, F. Schiantarelli. Social Science Research Network, 2010

323 citations recorded by the source corpus.

We present evidence that an increase in investment as a share of GDP predicts a higher growth rate of output per worker, not only temporarily, but also in the steady state. These results are found using pooled annual data for a large panel of countries, using pooled data for non- overlapping five-year periods, or allowing for heterogeneity across countries in regression coefficient. They are robust to model specifications and estimation methods. The evidence that investment has a long-run effect on growth rates is consistent with the main implication of certain endogenous growth models, such as the AK model.

Subfields: Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/8c3a3ede2fcf391f8676165c7197c99a3383fcb5

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

1. Liangjun Su
2. Xun Lu
3. Markus Brückner
4. Antonio Fatás
5. I. Mihov
6. A. Halunga
7. C. Orme
8. Heiko Hesse

Citations in the corpus

• The Effects of FDI Inflows on Host Country Economic Growth (2006, background): “On the other hand, Bond et al. (2004) argue that”
• State Capacity and Long-Run Economic Performance (2016, unknown): “This procedure is useful for small sample sizes like ours because it does not rely on asymptotic approximations.20 for ∆yi,t−1 following (Bond et al., 2010), and implemented the bias-corrected LSDV estimator proposed by Bruno (2005).”
• Does access to credit improve productivity ? Evidence from Bulgarian firms (2006, unknown): “1 A recent paper by Bond et al. (2004) questions that view and shows that capital accumulation is important for growth.”
• A heteroskedasticity robust Breusch–Pagan test for Contemporaneous correlation in dynamic panel data models (2017, methodology): “7 Allowing the slope coe¢ cients to di¤er across countries, the dynamic speci…cation of the growth equation is adopted from Bond et al. (equation 10): l̂gdpwit = 1i + 2i e lkit + 3i e lkit + 4i e lkit 1 + 1i l̂gdpwi;t 1 + 2i l̂gdpwi;t 2 + uit; (18) i = 1; 2; :::; N = 20 and t = 1; 2; :::; T = 47. In”
• Export Diversification and Economic Growth (2008, background): “Please see Bond et al (2004) for further information in a very similar context.”