THE OECD 1951-88 GROWTH EXPERIENCE REVISITED Erik Canton 1 Abstract This paper presents panel data evidence on an investment driven growth process for 16 OECD countries over the 1951-88 period, as it is predicted by new growth theory. Investments are hypothesized to depend on demand factors, human capital, and trade union power. The two-equation regression model appears to replicate the data in a satisfactorily way. In the search for the ultimate factors behind economic growth, this two- step approach seems more appropriate than a purely eclectic one. JEL code: 033, 041, 047, 050 August 1994 1 Department of economics, Tilburg University and CentER, P.O. Box 90153, 5000 LE Tilburg, The Netherlands. I am indebted to Anton van Schaik for useful suggestions on earlier versions of this paper. Theo Nijman encouraged me to apply the method of instrumental variables. Of course, any remaining errors are my own responsibility. brought to you by CORE View metadata, citation and similar papers at core.ac.uk provided by Research Papers in Economics