An Empirical Reexamination of the Solow Growth Model

Abstract

This paper develops a method to re-examine β-convergence empirically by using panel data. First, a sampling of countries is conducted, according to the stage of economic growth, for production function estimation, and countries are divided into the following three subsamples: a high initial income subsample, a low initial income and high growth rate subsample, and a low initial income and low growth rate subsample. Second, we estimate a convergence process for each subsample. The coefficient restrictions in the Solow model were maintained only for the low initial income and high growth rate subsample. J. Japan. Int. Econ., September 2001, 15(3), pp. 323–340. Department of Economics, Fukushima University, Matsukawa, Fukushima, 960–1296, Japan. Copyright 2001 Academic Press.Journal of Economic Literature Classification Numbers: O30, O40, O50.