Economic growth and economic development 152

Introduction to Modern Economic Growth

NOR
AUS
DNK
ISR SWE
USA
AUT
JPNFIN
NLD
CAN
BEL
GBR
ISL
GRC
FRA
ZMB
CHN
COG

Predicted log gdp per worker 1990
8
9
10

GMB
MOZ
RWA
SLE

LSO

MWI
KEN
NPL
MRT
TGO
SEN
MLI BEN CAF
BDI
GMB

11

LSO
ZMB

SLE

UGA MOZ

7

7

UGA

PER
FJI
PAN
PHL
URY

THA
CHL
MEX
VEN
TTO
JAM
CRI
BRA
IRNMYS
JOR ZAF PRT
ZWE
PRY
LKANIC DOM
SYR
MUS
BOL
COL
BWA TUR
TUN
HND
IND
IDN
PNG
SLV
EGY
CMR PAK
BGD
GTM
GUY

ARG
KOR
BRBIRL
GUY
ESPITA
PER VEN
HKG
FJIPAN
JAM
SGP
ECU
CHL
THA
ZWE PHL
URY
ZAF
MUS TTO PRT
COG
CRI BRA MEX
MYS
BOL IRN
MWI CHN
LKA
COL
TUR
DOM
GHA
NIC TUN
KEN
SYR PRY

IND
HND
SLV
BWA
PAK
PNG
SEN
IDN
GTMJOR
LSOBGD
NER
EGY
NPL TGO
CMR
BEN MLICAF
ZMB

7

8
9
10
log gdp per worker 1980

11

COG
KEN
TGO GHA NPL
CMR

MWI

NOR
JPNCHE
NZL
CAN USA
SWE
KOR
GER
AUS
FIN
DNK
AUT
ISR ISL
NLD
FRA
BEL
HUN GRC
HKG
GBR
ESPITA
PAN
ARG
MYS
PERTHA
IRL
CHL
ECU
MEX
JAM PHL

JOR URY
PRT
BRB
VEN
ZAF
CRI
BRATTO
ZWE
CHN
DZA TURIRN
NIC LKA
IDN PRY
HND
COL
BOL
MUS
SYR DOM
TUN
IND
SLV
EGY
GTM

PAK
BGD

SEN
BEN
GMB
MLI

NER
RWA
UGA
MOZ

7

CYP

45°

Predicted log gdp per worker 2000
8
9
10

NZL CHE
HUN

Predicted log gdp per worker 1980
8
9
10

45°
NOR
NZL CHE
DNK
GER
FIN

AUS
JPN
CANUSA
SWE
NLD
AUT
GRCISL
HUN
BEL
ARG
KORISR
CYP GBRFRA
BRBHKG
SGP ITA
IRL
ESP

11

11

45°

7

8

9
10
log gdp per worker 1990

11

7

8
9
10
log gdp per worker 2000

11

12

1.5

1.5

1.5

Figure 3.3. Calibrated technology levels relative to the US technology (from the Solow growth model with human capital) versus log
GDP per worker, 1980, 1990 and 2000.

IRL

JOR

ITA
ITA
GTM

MUS

MEX
ESP

CHE

SLE

GMB
RWA
MOZ

HKG
SYR
BRB
VEN
CRI
NZL
NIC IRN
NOR
JPN
CHL
DOM
PAN
TUR
MYS
ISR

HND

BWA
CMR

PNG

AUS
GBRSWE
DNK
FIN

BOL

FJI
MUS
ECU
PER CYP

CAF
PHL

KOR HUN

MLI

IDN
PAK
TGOBGD
ZWE
JAM
LKA

GUY
BEN
LSO
THA
NPL SENIND
GHA
KEN
NER

UGA

AUT
ISL CHE
GBR
HKG CAN
SWE
FIN
AUS
GER
DNK
MUS MEX
TUN
EGY
JPN
SLV COL
BRBGRC
CYP
PRY
ISR
TUR BRA

TTO
NZL
URY
JOR
NOR
KOR
VEN
MYS
CHL
SYR
GTM

ZAF

SLE

GMB
CAF
TGO
SEN
NPL
MRT
BEN KEN
LSO
COG
CHN
ZMB

MOZ
UGA

BDI
MLI

CHN COG ZMB
MWI

IRN
BWA
DOMCRI
PAN
PAK HND
FJI
IDN
PNG BOL
NIC
BGD
JAMTHA PER
CMR
LKA PHL
IND
ZWE

ARG
HUN

7

8
9
log gdp per worker 1980

10

11

1

BEL
USA
PRT
HKG
NLD
BRB ESP
FRA
AUT
GBR
ISL
DNK
AUS
FIN
GTM

TUN

EGY

TTO

SLV
MEX

DOM
ZAF
IRN
URY
BRA
ARG
MYS
CHL

BGD
PAK

TUR
SYR
JOR
COL VEN
CRI
PRY
DZA
PAN

GRC
ISR

CAN
GER
SWE
CHE

NZL

KOR
NOR
JPN

HUN

THA
IDN
IND LKA
BOL
MOZ
HND
PER
CMR
PHL
ECU
UGA
CHN
GMB
SEN NPL
NIC
JAM
MLI BEN
ZWE
RWA
NER
GHA
KEN
TGO COGLSO
MWI

ZMB

0

GUY

0

MWI

0

BEL
USA
FRA
SGP NLD
IRL

Predicted relative technology
.5

URY IRLGRC
ZAF
PRY BRA
CAN
AUT

EGY

1

ISLNLD

COL
TUN

TTO

ESP
PRT

Predicted relative technology
.5

1
Predicted relative technology
.5

SGP
ARG

SLV

ITA

FRA
BEL
USA

PRT

7

8
9
log gdp per worker 1990

10

11

7

8
9
10
log gdp per worker 2000

Figure 3.4. Calibrated technology levels relative to the US technology (from the Solow growth model with human capital) versus log
GDP per worker, 1980, 1990 and 2000.
(1) Differences in physical and human capital still matter a lot; the predicted
and actual incomes are highly correlated. Thus the regression analysis
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11

12