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Economic Growth of ECOWAS Countries and the Validity of Kaldor's First Law

Abstract

Yaya Keho

Kaldor's first growth law posits that the growth rate of an economy is positively related to the growth rate of its manufacturing sector. This paper tests the validity of this law for ECOWAS by controlling for both heterogeneity and cross-sectional dependence. The results suggest that the growth trajectory of ECOWAS countries is consistent with Kaldor's first law.

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