Nonlinear economic growth: Some theory and cross-country evidence (original) (raw)

Nonlinear Economic Growth: Some Theory and Cross-Country Evidence (with appendices)

2006

Abstract This paper aims to test the existence of different growth regimes, that is of different relationships between growth rate and income level. We propose a simple nonlinear growth model and test its empirical implications by estimating Markov transition matrices and stochastic kernels. We show that growth is indeed nonlinear: a first phase of slow or zero growth is followed by a take-off and, finally, by a phase of deceleration.

An Empirical Analysis of Growth Regimes

2010

Abstract In this paper we apply cluster analysis to a dataset on economic growth in 61 countries for the period 1960-1985. We find four clusters of countries and show that they correspond to four growth regimes (stages of growth), consistent with the growth path predicted by a nonlinear growth model. We highlight which factors characterize the membership of a country to a growth regime.

Economic Growth as a Nonlinear and Discontinuous Process

Econometrics, 2005

Abbasi-NejacLH, M.Motavasseli, S. Mohammadi. / 17 and prevalent technical penetration in basic industries create a phenomenon that has a resilient characteristic and commence a new sphere of economic life which can be called "economic take-off." Morris & Adelman (1997, ...

Evolution of Economic Growth Models

The economic growth models based on linear structures masked for a long time the instability phenomena. The nonlinearity concept seems relevant to explain many phenomena and in particular the economic fluctuations.

Convergence patterns in the world economy: exploring the nonlinearity hypothesis

Journal of Economic …, 2011

The objective of this paper is to question the conventional convergence literature, which bases its findings on the use of linear regression models. With the use of quadratic WLS regression analysis we show that a number of indicators of economic performance follow a pattern of change that is in essence non-linear. Our results indicate the formation of two clubs at the world scale: A convergence club that includes countries with a low to mediumhigh level of development and a divergence club including countries with a medium-high to very high levels of development. After a critical threshold the forces of divergence at the world scale dominate and the most dynamic countries eventually grow faster. Undoubtedly, the formation of a diverging leaders club and a further increase in world level development gap has serious implications for theory and policy.