Pair-Wise Cointegration in Long-Run Growth Models

23 Pages Posted: 9 Feb 2007

See all articles by Stefan Bergheim

Stefan Bergheim

Zentrum fuer gesellschaftlichen Fortschritt

Date Written: February 9, 2007

Abstract

This paper presents a novel theoretical and empirical approach to the analysis of long-run economic growth. It shows that most traditional theoretical models share the feature of pair-wise cointegration among the main variables. An augmented Kaldor model is proposed in contrast to the standard production function. The empirical analysis employs non-stationary panel techniques on two groups of countries to show that pair-wise cointegration exists among GDP, physical capital, human capital, and trade openness.

Keywords: Growth, cointegration, human capital, investment, openness

JEL Classification: O, C2

Suggested Citation

Bergheim, Stefan, Pair-Wise Cointegration in Long-Run Growth Models (February 9, 2007). Available at SSRN: https://ssrn.com/abstract=962391 or http://dx.doi.org/10.2139/ssrn.962391

Stefan Bergheim (Contact Author)

Zentrum fuer gesellschaftlichen Fortschritt ( email )

Raimundstr. 121
Frankfurt, 60320
Germany

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