Chapter

Verdoorn's and Kaldor's Laws

Maurice FitzGerald Scott

in A New View of Economic Growth

Published in print June 1991 | ISBN: 9780198287421
Published online November 2003 | e-ISBN: 9780191596872 | DOI: http://dx.doi.org/10.1093/0198287429.003.0012

Series: Clarendon Paperbacks

 Verdoorn's and Kaldor's Laws

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Labour productivity has grown at different rates in similar industries in different countries. Verdoorn suggested that this could be explained by faster rates of growth of output leading to economies of scale, but there are several other explanations, and the relation with output growth is not robust. Kaldor found that the rate of growth of total output in different countries was higher the faster was the rate of growth of manufacturing output from 1953 to 1963, and attributed this to demand factors, especially exports. However, the positive relation between the two virtually disappeared from 1970 to 1983, and can be explained ad hoc.

Keywords: economies of scale; Kaldor; labour productivity growth; manufacturing output growth; output growth; Verdoorn

Chapter.  11230 words.  Illustrated.

Subjects: Economic Development and Growth

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