An Econometric Analysis of the Impact of Real Wages on Economic Growth in OECD Countries using the ARDL-PMG Model (2002-2022)
Publicado en línea: 06 ago 2025
Páginas: 177 - 189
Recibido: 01 mar 2025
Aceptado: 01 may 2025
DOI: https://doi.org/10.2478/ers-2025-0015
Palabras clave
© 2025 Hamza Kettaf, published by Sciendo
This work is licensed under the Creative Commons Attribution 4.0 International License.
Subject and purpose of work
This study aimed to analyze the impact of real wages, human capital, and public expenditure as a percentage of Gross Domestic Product (GDP) on economic growth in six Organization for Economic Co-operation and Development (OECD) countries over the period (2002-2022).
Materials and methods
The Panel ARDL model using PMG estimation was employed to test short- and long-term relationships among the variables.
Results
It was found that real wages have a negative and significant impact on long-term economic growth, while human capital has a positive and significant impact. Public expenditure as a percentage of GDP showed a negative but insignificant impact in the long term.
Conclusions
The studies’ results show that real wages have a prominent role in determining the economic growth rate within the OECD countries. Moreover, the research reveals that the governmental expenditure is a very important factor in stimulating the economic growth.