How to offset the negative trend growth rate in the Italian economy?

Rao, B. Bhaskara and Antonio, Paradiso (2010): How to offset the negative trend growth rate in the Italian economy?

Abstract

The trend growth rate of the Italian economy has been declining since the 1980s. To examine how to offset this trend, we estimate a simple specification of an endogenous growth model. Cointegrating equations for the long-run output growth and its determinants are estimated with alternative time series methods. Our results imply that policies to double trade openness are necessary.

• Item Type: MPRA Paper
• Language: English
• Keywords: Economic Growth, Trade Openness, Italy
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O40 - General; O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O52 - Europe

References

Barro, R. and Lee, J. (2010) A New Data Set of Education Attainment in the World, 1950 – 2010, NBER Working Paper No. 15902.

Greiner, A., Semler, W. and Gong, G. (2004) The Forces of Economic Growth: A Time.series Perspective, Princeton, University Press, Princeton, NJ.

Modigliani, F., Padoa Schioppa, F. and Rossi, N. (1986) Aggregate Unemployment in Italy, 1960 – 1983, Economica, 53, 245 -273.

Rao, B. B. (2010) Time-Series Econometrics of Growth-Models: A Guide for Applied Economists, Applied Economics, 42, 73–86.