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

Jochen Hartwig

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. -- Exogenous growth ; endogenous growth ; panel Granger-causality tests

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Year of publication:	2009
Authors:	Hartwig, Jochen
Publisher:	Zürich : KOF
Subject:	Endogenes Wachstumsmodell \| Endogenous growth model \| Neoklassisches Wachstumsmodell \| Neoclassical growth model \| Panel \| Panel study \| Kausalanalyse \| Causality analysis \| OECD-Staaten \| OECD countries \| 1970-2005