|
|
|
|
Title: |
Long-Run Economic Growth in Europe: Is It Endogenous or Neoclassical? |
| Author: |
Karras, Georgios |
| Author
Affiliation: |
U IL, Chicago |
| Source: |
International Economic Journal, Summer 2001, v. 15, no. 2, pp. 63-76 |
|
Publication Date: |
Summer 2001 |
|
Abstract: |
The growth effects of European economic
and monetary integration and the progress of regional convergence across
Europe depend on whether economic growth in Europe is consistent with a
neoclassical or an endogenous growth model. Using annual data from the
1950-92 period for each of 20 European economies, the paper finds that
steady-state real growth rates are generally unaffected by changes in
the investment rate, population growth, and government consumption,
evidence consistent with neoclassical growth theories. This strengthens
the likelihood of regional (perhaps conditional) convergence, and
suggests that the effects of greater monetary and economic unification
will be in terms of higher incomes per capita, but not in terms of
permanently higher growth rates. |
|
