Factor Endowment, Structural Coherence, and Economic Growth

 
Author/Editor: Che, Natasha Xingyuan
 
Publication Date: June 01, 2012
 
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
 
Summary: This paper studies the linkage between structural coherence and economic growth. Structural coherence is defined as the degree that a country's industrial structure optimally reflects its factor endowment fundamentals. The paper found that at least for the overall capital, the shares of capital intensive industries were significantly bigger with higher initial capital endowment and faster capital accumulation. Moreover, there is a positive relationship between a country's aggregate output growth and the degree of structural coherence. Quantitatively, the structural coherence with respect to the overall capital explains about 30% of the growth differential among sample countries.
 
Series: Working Paper No. 12/165
Subject(s): Economic growth | Industrial structure | Capital accumulation | Production growth | Economic models

Author's Keyword(s): Structural Coherence | Economic Growth | Structural Change | Factor Endowment | Capital Accumulation
 
English
Publication Date: June 01, 2012
Format: Paper
Stock No: WPIEA2012165 Pages: 41
Price:
US$18.00 (Academic Rate:
US$18.00 )
 
 
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