Kaldor's 'laws' on 'manufacturing as the engine of growth' have been tested using cross-country data, mainly from developing countries, for the period 1960-1994. Instrumental variable techniques were used to explore problems associated with simultaneity and spuriousness. It has been found that manufacturing output growth rate is exogenous as Kaldor envisaged and his 'laws' are applicable to most of the developing world.
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S. NECMI (1999) studied this question.
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