An empirical reexamination of the Solow growth model

This paper develops a method to re-examine beta -convergence empirically by using panel data. First. a sampling of countries is conducted, according t o the stage of economic growth, for production function estimation, and cou ntries are divided into the following three subsamples: a high initial inco me subsample, a low initial income and high growth rate subsample. and a lo w initial income and low growth rate subsample. Second, we estimate a conve rgence process for each subsample. The coefficient restrictions in the Solo w model were maintained only for the low initial income and high growth rat e subsample. (C) 2001 Academic Press.