Empirical analysis confirms Kaldor's growth law in 38 OECD countries, suggesting the industrial sector drives economic growth.
Key Points
Kaldor's law shows a positive relationship between manufacturing growth and economic performance, demonstrating the importance of the industrial sector.
Analysis of panel data from 38 OECD countries revealed findings consistent with Kaldor's first law of growth, indicating its validity.
The methodological approach used was a panel data analysis covering annual data from 1997 to 2020 in numerous OECD nations.
This analysis underscores the need for policies that support and enhance the industrial sector's growth for overall economic development.