Factor Endowment, Structural Coherence, and Economic Growth

Author/Editor:

Natasha X Che

Publication Date:

June 1, 2012

Electronic Access:

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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. 2012/165

Subject:

Capital productivity Employment Human capital Information technology in revenue administration Labor Production Revenue administration Total factor productivity

Frequency:

Annually

English

Publication Date:

June 1, 2012

ISBN/ISSN:

9781475505139/1018-5941

Stock No:

WPIEA2012165

Pages:

42

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