The Industrialization and Growth of Gross Domestic Product

Authors

  • Брано Маркић University of Mostar, Faculty of Economics
  • Сања Бијакшић University of Mostar, Faculty of Economics
  • Арнела Беванда University of Mostar, Faculty of Economics

DOI:

https://doi.org/10.7251/ACE1522151M

Keywords:

Kaldor laws, economic growth, the production method of calculating GDP, growth models

Abstract

The paper the industrialization and the growth of gross domestic product is a research and empirical verification of Nicholas Kaldor laws on the impact of industrial production to GDP growth. Kaldor has formulated the principles of economic growth in the form of three laws that tend to identify key causes of economic growth. His first law asserts that the rate of economic growth is positively correlated with the rate of growth of its manufacturing sector. Industry as the most important force of economic development is widely analyzed in the literature on economic development (Hirschman (1961), Rosenstein-Rodan (1943), Tirwall (2013), Cornwall (1977)). The aim is to empirically test the Kaldor’s approach to growth and development in the Federation of Bosnia and Herzegovina. It is therefore designed a special data set consisting of two-dimensional tables and time series. Using regression analysis was quantified the relationship between the growth rate of gross domestic product and the growth of industrial production.

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References

Bairam, E.I. (1991). Economic Growth and Kaldor’s Law: the Case of Turkey, 1925-78. Applied Economics, 23(August), pp.1277-80
Cornwall, J. (1977). Modern Capitalism. Its Growth and Transformation. New York: St. Martin’s Press.
Hirschman ,O. & Watkins, M. H. (1961). The Strategy of Economic Development. The Canadian Journal of Economics and Political Science, Vol. 27, No. 1, pp. 110-112.
Kaldor, N. (1966). Causes of the Slow Rate of Economic Growth in the United Kingdom, Inaugural Lecture at the University of Cambridge. Cambridge: Cambridge University Press.
Kaldor, N. (1975). Economic Growth and the Verdoorn’s law. A Comment on Mr. Rowthorn’s Article. Economic Journal, 85(340), pp. 891-896.
Markic, B. (2014). Sustavi potpore odlu?ivanju i poslovna inteligencije. Mostar: HKD Napredak, Glavna podružnica Mostar,
Yongbok, J. (2006). Manufacturing, Increasing Returns and Economic Development in China, 1979-2004: A Kaldorian Approach. University of Utah, Department of Economics .
Tirlwall, A.P. (1983). A New Interpretation of Kaldor’s First Growth Law for Open Developing Countries. Studies in Economics, School of Economics, University of Kent.

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Published

2015-02-28

How to Cite

Маркић, Б., Бијакшић, С., & Беванда, А. (2015). The Industrialization and Growth of Gross Domestic Product. Acta Economica, 13(22), 151–166. https://doi.org/10.7251/ACE1522151M

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Section

Preliminary Communication

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