Introduction to Modern Economic Growthin Figure 1.9 above.. Figure 1.9 showed that the relationship between log GDP per worker in 2000 and log GDP per worker in 1960 can be approximated
Trang 1Introduction to Modern Economic Growth
in Figure 1.9 above In particular, since gt,t−1 ' ln yt− ln yt−1, equation (1.1) can
be written as
ln yt' (1 + β) ln yt−1+ εt
Figure 1.9 showed that the relationship between log GDP per worker in 2000 and log GDP per worker in 1960 can be approximated by the 45◦ line, so that in terms
of this equation, β should be approximately equal to 0 This is confirmed by Figure 1.14, which depicts the relationship between the (geometric) average growth rate between 1960 and 2000 and log GDP per worker in 1960 This figure reiterates that there is no “unconditional” convergence for the entire world over the postwar period
ARG AUS AUT
BDI
BEL
BEN BFA
BGD
BOL
BRA BRB
CAN
CHE CHL
CHN
CIV
CMR
COG
COL
COM
CPV
CRI
DNK DOM
ECU EGY
ESP
ETH
FIN FRA GAB
GBR
GHA
GIN GMB
GNB
GRC
GTM HKG
HND
IDN IND
IRL
ISR ITA
JAM JOR JPN
KEN
KOR
LKA LSO
LUX
MAR
MDG
MEX
MLI MOZ
MUS
MWI
MYS
NER
NLD
NOR NPL
NZL
PAK
PAN
PER PHL
PRT
PRY ROM
RWA
SEN
SLV
SWE
SYC
SYR
TCD TGO
THA
TTO TUR
TZA
UGA
URY
USA
VEN
ZAF
ZMB ZWE
log gdp per worker 1960
Figure 1.14 Annual growth rate of GDP per worker between 1960
and 2000 versus log GDP per worker in 1960 for the entire world
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