Is The Kaldor’s Growth Law Valid For High Income Economies: A Panel Study
Abstract
In the 1960s Nicholas Kaldor stated three propositions emphasizing the causes of the economic growth. So, Kaldor’s laws of growth have been focus point for many researchers and the researchers have tried to prove empirically the laws. We have dealt with the first law of Kaldor. The first law asserts that the faster growth in manufacturing will trigger economic growth. The purpose of this article is to investigate whether Kaldor’s first law hold for 23 OECD countries that have high income economies during the period 1980-2008, using panel estimation techniques. The findings from empirical analysis indicate that Kaldor’s first law is compatible with the economic growth of selected countries during period 1980-2008.
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