This paper develops a method for interpreting growth accounting studies in terms of the neoclassical growth model. In particular it shows that the growth accounting contribution of capital reflects the distance of the economy form its steady state income level. The method is applied to studies...

An extension of the Uzawa-Lucas endogenous growth model is discussed which incorporates diminishing returns to human capital and unskilled labour in aggregate labour inputs. This extension is important in the context of developing economies, due to their abundance of unskilled labour, relative...

Do well-functioning stock markets and banks promote long-run economic growth? Recent studies answer this important question in the affirmative. This paper presents a reasonable extreme bounds analysis of the empirical relationships between the financial system and economic growth as well as the...

This paper is an empirical investigation of the determinants of city growth in Autralia from 1981 to 1991. Our basic goal is to explain the population and labour force growth of a cross section of cities in the time period using variables representing the final characteristics of cities.

An important stylized fact of economic growth is that the rate of return to capital is relatively constant across countries and time. This paper gives an explanation for this using a model of growth in a developing economy that has dualistic structure. Three conditions are derivedm each of which...

A model of growth in a developing economy is presented, extending previous work by Lucas (1988) and Dexit (1968). The model distinguishes betwwen unskilled labour and Human capital inputs and incorporates and elastic supply curve for unskilled labour.

The topic of economic growth and convergence of countries has been an active topic in the 1990's. This paper investigates the question of whether there is any empirical evidence that countries are converging, with respect to their relative incomes, over time. To test for convergence, the...

The purpose of this paper is to access the contribution of each one of the major factors explaining Australian nominal growth: technological change, movements in the terms of trade, increases in the endowments of labour and capital, and changes in domestic output prices.