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Data on growth and development

Data on growth and development. Fact #3: Growth rates are not necessarily constant over time. In the U.S. and in several poor countries growth rates have not changed so much. In many Newly Industrialized Countries (NICs) growth rates have increased dramatically.

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Data on growth and development

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  1. Data on growth and development • Fact #3: Growth rates are not necessarily constant over time. • In the U.S. and in several poor countries growth rates have not changed so much. • In many Newly Industrialized Countries (NICs) growth rates have increased dramatically. • This means that countries can catch up or can move from being rich to being poor: • This observation leads to the following fact: • Fact #4: Countries can move over time from being “poor” to being “rich” and vice-versa. Facts About Growth

  2. Data on Growth and DevelopmentSame as slide 11 Facts About Growth

  3. Cumulative Distribution of World Population Facts About Growth

  4. Other “stylized facts” • Fact #5: In the United States over the last century: • 1. The real rate of return to capital is roughly constant over time. • 2. The shares of income devoted to capital and labor are also constant over time. • 3. The average growth rate of output per person has been positive and relatively constant over time. • Fact #6 Growth in output and growth in the volume of international trade are closely related. Facts About Growth

  5. US Real Per Capita GDP Facts About Growth

  6. Growth and Trade Facts About Growth

  7. Conclusions • Technological change that takes the form of the introduction of new goods and/or processes is at the heart of Schumpeterian growth theory. • This theory formalizes the notion of creative destruction. • It analyzes non-convexities, distortions and imperfect competion. • There are three classes of Schumpeterian growth models • Earlier endogenous growth models • Semi-endogenous growth models • Fully-endogenous growth models Facts About Growth

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