The Endogeneity of the Natural Rate of Growth: Evidence from OECD Countries

The present study aims at empirically examining the validity of the hypothesis that the natural rate of economic growth would be endogenous in the sense that it is affected considerably by the actual rate of growth. The empirical results followed by a brief discussion on the rationale for the theme demonstrate the endogenous nature of the natural rate of growth. Recalling the theoretical background discussed, the results might suggest demand-led economic growth, which makes our approach distinguished from the conventional approach to economic growth.