Estimates of the steady state growth rates for the Scandinavian countries: a knowledge economy approach

Casadio, Paolo and Paradiso, Antonio and Rao, B. Bhaskara (2011): Estimates of the steady state growth rates for the Scandinavian countries: a knowledge economy approach.

Abstract

This paper estimates the steady state growth rate for Scandinavian countries with a “knowledge economy” approach. We shall use an extended version of the Solow (1956) growth model, in which total factor productivity is assumed to be a function of human capital (measured by average years of education), trade openness and investment ratio. Using this framework we show that these factors, and in particular the education variable, have played an important role to determine the long run growth rates of the Scandinavian countries. Some policy measures are identified to improve the long-run growth rates for these countries.

• Item Type: MPRA Paper
• Language: English
• Keywords: Endogenous growth models, Trade openness, human capital, investment ratio, Steady state growth rate, Scandinavian countr
• Subjects: C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C22 - Time-Series Models ; Dynamic Quantile Regressions ; Dynamic Treatment Effect Models ; Diffusion Processes; O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O52 - Europe; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O40 - General

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