The object of this study is to investigate the validity of the Kaldor-Verdoorn’s Law in explaining the long run determinants of the labor productivity growth for manufacturing industry sector of the main developed economies (Western European Countries, Australia, Canada, Japan, United States). We consider the period 1973-2006 using the data provided by the European Commission - Economics and Financial Affairs. With respect to earlier studies focusing on developed economies, this paper is characterized by a number of original aspects: 1) we test the Kaldor-Verdoorn’s Law on data which cover a long time dimension and approach to the most recent years; 2) we investigate empirically whether the Kaldor-Verdoorn’s Law is stable after 1986, year that corresponds to the end of the effects of the two oil shocks occurred in the seventies. [JEL Classification: C32 – O47]
Kaldor-Verdoorn's Law and Increasing Returns to Scale: A Comparison Among Developed Countries
OFRIA, Ferdinando;MILLEMACI, Emanuele
2009-01-01
Abstract
The object of this study is to investigate the validity of the Kaldor-Verdoorn’s Law in explaining the long run determinants of the labor productivity growth for manufacturing industry sector of the main developed economies (Western European Countries, Australia, Canada, Japan, United States). We consider the period 1973-2006 using the data provided by the European Commission - Economics and Financial Affairs. With respect to earlier studies focusing on developed economies, this paper is characterized by a number of original aspects: 1) we test the Kaldor-Verdoorn’s Law on data which cover a long time dimension and approach to the most recent years; 2) we investigate empirically whether the Kaldor-Verdoorn’s Law is stable after 1986, year that corresponds to the end of the effects of the two oil shocks occurred in the seventies. [JEL Classification: C32 – O47]Pubblicazioni consigliate
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