Harrod’s Guaranteed Growth Rate as a Law of Economic Growth: An Empirical Proof

In the 1950s, there were important developments in growth theory based on Harrod’s (1939) Post-Keynesian growth model that sought to solve theoretically the problem of instability in this model. However, no literal empirical verification of the model has been done. This article modifies the Harrod model to include technical change and provides empirical proof by means of different methodologies. It concludes that Harrod’s guaranteed growth rate tends to be a law in economic growth theory.