This study points out to a contradiction between increasing returns to scale assumption and steady-state or long run equilibrium or balanced growth analysis in models of endogenous growth. The paper reminds the necessity of the constant returns to scale assumption in models of economic growth,...

This study estimates and tests the endogeneity of the natural rate of growth using the balance-of-payments consistent rate of growth (BPCRG) instead of the actual rate of growth. Our approach is also theoretically compatible with the one proposed by Thirlwall (2001). Following this idea, we...