Transitional Dynamics and Economic Growth in Developing Countries

1. Front Matter

   Pages I-VIII

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2. Introduction

   • Thomas Steger

   Pages 1-2

3. Preliminaries

   • Thomas Steger

   Pages 3-20

4. Economic growth with subsistence consumption

   • Thomas Steger

   Pages 21-60

5. Productive consumption and growth in developing countries

   • Thomas Steger

   Pages 61-105

6. Transitional dynamics with endogenous control variables

   • Thomas Steger

   Pages 107-135

7. Summary and conclusion

   • Thomas Steger

   Pages 137-139

8. References

   • Thomas Steger

   Pages 141-148

9. Back Matter

   Pages 149-156

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Four stylised facts of aggregate economic growth are set up initially. The growth process is interpreted to represent transitional dynamics rather than balanced-growth equilibria. Against this background, the fundamental importance of subsistence consumption is comprehensively analysed. Subsequently, the meaning of the productive-consumption hypothesis for the intertemporal consumption trade-off and the growth process is investigated. Finally, the process of growth is analysed empirically by means of cross-sectional conditional convergence regressions with endogenous control variables.

• Conditional Convergence
• Developing Countries
• Economic Development
• Economic Dynamics
• Economic Growth
• Entwicklungsländer
• Productive Consumption
• Subsistence Consumption
• Transition
• Transitional Dynamics
• Wirtschaftliche Dynamik
• Wirtschaftswachstum
• development economics
• existenzminimaler Konsum
• wirtschaftliche Entwicklung

• Economics Research Department, DGZ Deka Bank, Frankfurt, Germany

  Thomas Steger

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