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Empirical Estimation of the Solow Growth Model: A Panel Approach

Das, Debasish Kumar LU (2013) EKHR92 20131
Department of Economic History
Abstract
This research examines the relevancy of Solow growth model in 20
OECD countries over the period 1971-2011. Following Mankiw-Romer-Weil (1992) and Islam (1995), I estimate both textbook and augmented Solow model. Along with OLS, estimation is carried out implementing both static panel and dynamic panel GMM carries out estimation. Results imply that appending human capital measure in augmented Solow model can better explain the international differences in levels of output per worker.Importantly, convergence rate is relatively stronger when growth is conditioned on workforce growth rate, rate of savings and human capital. Using efficient system GMM in dynamic panel, I have shown that speed of convergence is about 4.7 percent, which is... (More)
This research examines the relevancy of Solow growth model in 20
OECD countries over the period 1971-2011. Following Mankiw-Romer-Weil (1992) and Islam (1995), I estimate both textbook and augmented Solow model. Along with OLS, estimation is carried out implementing both static panel and dynamic panel GMM carries out estimation. Results imply that appending human capital measure in augmented Solow model can better explain the international differences in levels of output per worker.Importantly, convergence rate is relatively stronger when growth is conditioned on workforce growth rate, rate of savings and human capital. Using efficient system GMM in dynamic panel, I have shown that speed of convergence is about 4.7 percent, which is twice than the standard consensus about convergence rate in literature. (Less)
Please use this url to cite or link to this publication:
author
Das, Debasish Kumar LU
supervisor
organization
course
EKHR92 20131
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Growth, Solow model, Convergence, Dynamic panel GMM
language
English
id
4023880
date added to LUP
2013-10-09 09:03:36
date last changed
2013-10-09 09:03:36
@misc{4023880,
  abstract     = {This research examines the relevancy of Solow growth model in 20 
OECD countries over the period 1971-2011. Following Mankiw-Romer-Weil (1992) and Islam (1995), I estimate both textbook and augmented Solow model. Along with OLS, estimation is carried out implementing both static panel and dynamic panel GMM carries out estimation. Results imply that appending human capital measure in augmented Solow model can better explain the international differences in levels of output per worker.Importantly, convergence rate is relatively stronger when growth is conditioned on workforce growth rate, rate of savings and human capital. Using efficient system GMM in dynamic panel, I have shown that speed of convergence is about 4.7 percent, which is twice than the standard consensus about convergence rate in literature.},
  author       = {Das, Debasish Kumar},
  keyword      = {Growth,Solow model,Convergence,Dynamic panel GMM},
  language     = {eng},
  note         = {Student Paper},
  title        = {Empirical Estimation of the Solow Growth Model: A Panel Approach},
  year         = {2013},
}