Barro and Sala-i-Martin analyzed the empirical determinants of growth. They used a cross-sectional empirical\nframework that considered growth from two kinds of factors, initial levels of steady-state variables and control variables\n(e.g., investment ratio, infrastructure). Recent literature suggests that education is important in determining steadystate\ngrowth. Sequeira Following Baumol, we also consider the growth regression. We extend the previous research\nfor Asian countries of Kim to developed countries. Following the implications of semi-endogenous growth theory, we\nregressed output growth on a constant, one-year lagged output (initial income) and the determinants of steady-state\nincome [investment rate, population growth, the quadratic (or linear) function of R&D intensity and human capital\nmeasured by years of schooling or enrollment rate in secondary school]. The regression suggests higher significance\nin research efforts. This contradicts with that of Sequeira, which asserts the speed is determined by only education,\npreference and technology parameter. The coefficients for the determinants of steady-state income, especially for\nthe quadratic function of R&D intensity, are significant and occur in the expected direction. Our results suggests that\nadopting appropriate growth policy related with R&D, an economy can grow more rapidly through transition dynamics\nor changing fundamentals.
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