Kaldorian approach to Greek economic growth

Abstract

In the last 30 years, Greece has experienced a rapid rate of economic growth which has transformed the economy and enabled it to become a member of the EEC. Specifically, Greece transformed itself from an agricultural economy with virtually no industrial base to an economy with a significant industrial sector and consequently a relatively high income per capita. One can explain this on the lines of a Kaldorian framework. In this paper we provide an outline of Kaldor's growth model and test its relevance to the economic experience of Greece during the 1967-1988 period. The empirical results suggest that the model can adequately explain the developments in the economy to a considerable degree.Special thanks are due to C. Lee, S. Dodd and to an anonymous referee.2

Explaining economic growth in South Africa: a Kaldorian approach

“…A reduced sample size of 26 observations to test laws two and three is still sufficient for the purposes of this study and is larger than that used by previous studies undertaken by Drakopoulos and Theodossiou (1991) of 22 observations and Bairam (1991) of 11 observations. Note that the data set compiled for the employment statistics generally excludes the former Transkei, Bophuthatswana, Venda and Ciskei (TBVC) states, but this should not affect the study in question as the employment statistics are nonetheless consistent in nature and compilation amongst all sources used.…”

“…The South African econom y experienced a period of uninterrupted prosperity (McCarth y, 1999: 143) Kaldor ' s ( 1966) original study, along with later studies undertaken by Cripps and Tar ling (1973) and Hansen and Zhang (1996 ) make use of a cross-sectional research methodology. This thesis employs a time series approach and is more consistent with the methodology employed by Drakopoulos and Theodossiou ( 1991) and Bairam (1991). In this thesis, where reference is made to the results found by cross-sectional studies, I do realise the limitations of drawing compar isons between the two research methods.…”

“…Professor Lord Nicholas Kaldor (1908Kaldor ( -1986) made original and important contributions to the theory of the firm, to Keynesian economics, to growth and distribution theory, to equilibrium economics, and to thinking about domestic and international economic policy (Targetti and Thirlwall, 1989: 1). This chapter focuses on Lord Kaldor's contribution to growth and distribution theory, and discusses the Kaldor growth model with special reference to three regularities that have become known as Kaldor's growth laws (Parikh, 1978;Thirlwall, 1983;McCombie and de Ridder, 1983;McCombie, 1983;Mizuno and Ghosh , 1984;Drakopoulos and Theodossiou, 1991). These three laws , and their application with regard to the South African economy, form the basis for this thesis.…”

“…More specifically, GOP growth is faster, the greater the excess of industrial growth relative to GOP growth , or when the share of industry in total GOP is rising the fastest (Thirlwall, 1999: 78). Drakopoulos and Theodossiou (1991); Hansen and Zhang (1996) . 29 by industrial growth) or points to the right of the 45°equilibrium line, shows that the greater the excess of industrial growth over GOP growth, the faster GOP seems to grow.…”

Manufacturing and economic growth in the United States

“…More recently, there have been applications of Kaldor's laws using time-series data from the United Kingdom (Stoneman, 1979), and from relatively less industrial countries: Greece (Drakopoulos and Theodossiou, 1991) and Turkey (Bairam, 1991). But, these studies are not able to concentrate on long-term economic growth, since the findings are based primarily on time-series data which incorporate short-term cyclical changes.…”