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Few issues are as important to a country as the long-term growth and productivitytrends facing their economy The relative slow-down in the growth rates ofthe United States economy since 1973 has worried economists and politiciansalike Many possible causes have been put forth though none is fullysatisfactory Before discussing the theoretical models of growth itwould be useful to study the data on growth that is currently availableAs Nicholas Kaldor in his influential article on growth Capital Accumulationand Economic Growth 1961 stated a theorist ought to start with the summaryof the facts that are immediately available concentrating primarily on broadtendencies or stylized facts Theories can then be constructed to explainthe facts Listed below are the stylized facts as mentioned by Kaldor1 Output per worker shows continuous growth2 Capital per worker shows continuous growth3 The rate of return on capital is steady4 The capital-output ratio is steady5 Labor and capital receive constant shares of total income6 There are wide differences in the rate of growth across countries In addition to the above other researchers have foundadditional features which are obscure for a wide array of data7 Average growth rates show no variations with the level of per-capitaincome8 Growth in trade is positively correlated with income levels9 Population growth rates are negatively correlated with income levels10 The rate of growth of factors inputs is never large enough to explainthe rate of growth that is technical progress is essential to growth Angus Maddison in his book Phases of CapitalisticDevelopment 1982 lists in great detail the empirical aspects of growth duringthe past two hundred years This study extends out on the whole Kaldorsmain observations Both output and capital per worker has shown tremendousgrowth over time Even though growth rates have slowed down since 1973 theyare at levels still high by historic standards Similarly the constancyof the capital-output ratio is borne out by the statistical data of developedcountries However Kaldors assertion about the constancy oflabor and capital shares in total income
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