Resource title

Openness and economic growth in developing countries

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Resource description

Openness appears to have a strong impact on economic growth especially in DCs, which typically exhibit a high share of physical capital in factor income and a low share of labor. In the neoclassical growth model with partial capital mobility, physical capital?s share in factor income determines the difference in the predicted convergence rates for open and closed economies. With a 60 percent share as in many developing countries, the convergence rates should differ by a factor of about 2.5. My regression results for a sample of open and closed DCs roughly confirm this hypothesis.

Resource author

Erich Gundlach

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Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/1723

Resource license

Adapt according to the presented license agreement and reference the original author.