40:
867:
855:
993:
based on
Verdoorn's law. For a given country an expansion of the export sector may cause specialisation in the production of export products, which increase the productivity level, and increase the level of skills in the export sector. This may then lead to a reallocation of resources from the less
925:. Verdoorn argued that "in the long run a change in the volume of production, say about 10 per cent, tends to be associated with an average increase in labor productivity of 4.5 per cent." The Verdoorn coefficient close to 0.5 (0.484) is also found in subsequent estimations of the law.
997:
Thirlwall shows that for several countries the rate of growth never exceeds the ratio of the rate of growth of exports to income elasticity of demand for imports. This implies that growth is limited by the balance of payments equilibrium. This result is known as
974:
Verdoorn's law differs from "the usual hypothesis that the growth of productivity is mainly to be explained by the progress of knowledge in science and technology", as it typically is in neoclassical models of growth (notably the
933:
Verdoorn's law describes a simple long-run relation between productivity and output growth, whose coefficients were empirically estimated in 1949 by the Dutch economist. The relation takes the following form:
1099:
Verdoorn, P J (1988). Ironmonger, D.; Perkins, J. O. N.; Van Hoa, T. (eds.). "Fattori che regolano lo sviluppo della produttivitĂ del lavoro" [Factors governing the growth of labour productivity].
994:
efficient non-trade sector to the more productive export sector, lower prices for traded goods and higher competitiveness. This productivity change may then lead expanded exports and to output growth.
967:
913:
is named after Dutch economist Petrus
Johannes Verdoorn. It states that in the long run productivity generally grows proportionally to the square root of output. In
971:
where p is the labor productivity growth, Q the output growth (value-added), b is the
Verdoorn coefficient and a is the exogenous productivity growth rate.
979:). Verdoorn's law is usually associated with cumulative causation models of growth, in which demand rather than supply determine the pace of accumulation.
897:
829:
1261:
1266:
990:
1241:
Thirlwall, A. P. (March 1979), "The balance of payments constraint as an explanation of international growth rate differences",
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49:
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550:
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127:
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1028:
Verdoorn, P. J. (1993). Pasinetti, L. (ed.). "On the
Factors Determining the Growth of Labor Productivity".
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427:
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180:
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1203:
1186:
Sidhu, Hina (December 1999). "Application of
Verdoorn's Law to the Small Scale Sector in India".
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Verdoorn, P J (1949). "Fattori che regolano lo sviluppo della produttivitĂ del lavoro".
917:, this law pertains to the relationship between the growth of output and the growth of
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921:. According to the law, faster growth in output increases productivity due to
670:
470:
1199:
914:
520:
451:
31:
854:
16:
Economic relationship between growth in output and growth in productivity
1149:
1128:
Verdoorn, P J (June 1980), "Verdoorn's Law in
Retrospect: A Comment",
1044:
Productivity Growth and
Economic Performance: Essays on Verdoorn’s Law
1141:
1005:
Sometimes
Verdoorn's law is called Kaldor-Verdoorn's law or effect.
1104:. Translated by Thirlwall, A. P. London: Macmillan Press: 199–207.
1041:
McCombie, John; Pugno, Maurizio; Soro, Bruno, eds. (2002).
940:
961:
1021:Causes of the Slow Growth in the United Kingdom
891:
8:
1245:, vol. 32, no. 128, pp. 45–53
1243:Banca Nazionale del Lavoro Quarterly Review
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884:
18:
1036:. Oxford: Oxford University Press: 59–68.
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1136:(358), Royal Economic Society: 382–85,
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1023:, Cambridge: Cambridge University Press
30:
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1102:National Income and Economic Progress
7:
14:
1050:. New York: Palgrave Macmillan.
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38:
140:Concepts, theory and techniques
1:
1262:Eponymous laws of economics
1188:The Indian Economic Journal
1283:
1267:1949 in economic history
1200:10.1177/0019466219990211
128:JEL classification codes
1030:Italian Economic Papers
314:Industrial organization
171:Computational economics
963:
962:{\displaystyle p=a+bQ}
166:Experimental economics
964:
989:developed models of
938:
393:Social choice theory
860:Business portal
181:Operations research
161:National accounting
959:
923:increasing returns
191:Industrial complex
186:Middle income trap
991:export-led growth
987:Anthony Thirlwall
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1062:</ref>
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830:Publications
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418:Sociological
391: /
289:Geographical
269:Evolutionary
244:Digitization
209:Agricultural
113:Mathematical
84:Econometrics
1082:L'Industria
977:Solow model
929:Description
666:von Neumann
319:Information
259:Engineering
239:Development
234:Demographic
176:Game theory
118:Methodology
1256:Categories
1216:1292995662
1121:2009-06-17
1057:0333968778
1017:Kaldor, N.
1009:References
825:Economists
696:Schumacher
601:Schumpeter
571:von Wieser
491:von ThĂĽnen
452:economists
428:Statistics
423:Solidarity
344:Managerial
309:Humanistic
304:Historical
249:Ecological
214:Behavioral
108:Mainstream
1208:254294312
915:economics
741:Greenspan
706:Samuelson
686:Galbraith
656:Tinbergen
596:von Mises
591:Heckscher
551:Edgeworth
369:Personnel
329:Knowledge
294:Happiness
284:Financial
254:Education
229:Democracy
123:Political
89:Heterodox
32:Economics
1212:ProQuest
1019:(1966),
834:journals
820:Glossary
771:Stiglitz
736:Rothbard
716:Buchanan
701:Friedman
691:Koopmans
681:Leontief
661:Robinson
546:Marshall
450:Notable
398:Regional
374:Planning
349:Monetary
279:Feminist
224:Cultural
219:Business
24:a series
22:Part of
1150:2231798
1088:: 3–10.
840:Schools
832: (
791:Piketty
786:Krugman
651:Kuznets
641:Kalecki
616:Polanyi
506:Cournot
501:Bastiat
486:Ricardo
476:Malthus
466:Quesnay
438:Welfare
408:Service
79:Applied
55:Outline
50:History
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1206:
1148:
1054:
776:Thaler
756:Ostrom
751:Becker
746:Sowell
726:Baumol
631:Myrdal
626:Sraffa
621:Frisch
611:Knight
606:Keynes
581:Fisher
576:Veblen
561:Pareto
541:Menger
536:George
531:Jevons
526:Walras
516:Gossen
384:Public
379:Policy
334:Labour
299:Health
156:Market
1204:S2CID
1146:JSTOR
1068:Notes
1048:(PDF)
813:Lists
781:Hoppe
766:Lucas
731:Solow
721:Arrow
711:Simon
676:Lange
671:Hicks
646:Röpke
636:Hayek
586:Pigou
556:Clark
471:Smith
433:Urban
413:Socio
403:Rural
103:Macro
99:Micro
60:Index
1052:ISBN
985:and
797:more
521:Marx
511:Mill
496:List
1196:doi
1138:doi
761:Sen
481:Say
339:Law
1258::
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1144:,
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1034:II
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101:/
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1086:1
1060:.
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954:b
951:+
948:a
945:=
942:p
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892:t
885:v
836:)
Text is available under the Creative Commons Attribution-ShareAlike License. Additional terms may apply.
