ECONOMIC-GROWTH IN A CROSS-SECTION OF COUNTRIES

For 98 countries in the period 1960-1985, the growth rate of real per capita GDP is positively related to initial human capital and negatively related to the initial level of real per capita GDP. Countries with higher human capital also have lower fertility rates and higher ratios of physical investment to GDP. Growth is inversely related to the share of government consumption in GDP, but insignificantly related to the share of public investment. Growth rates are positively related to measures of political stability and inversely related to a proxy for market distortions. -Author