Capital and Trade As Engines of Growth in France: An Application of Johansen's Cointegration Methodology
February 1, 1993
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Summary
An aggregate production function is estimated with recent cointegrating techniques that are particularly appropriate for estimating long-run relationships. The empirical results suggest that the growth of output in France has been spurred by increased trade integration within the European Community and by the accumulation not only of business sector capital—the only measure of capital included in most empirical studies—but also by the accumulation of government infrastructure capital, residential capital, and R&D capital. Calculations of potential output indicate that trade and capital—broadly defined—account for all of the growth in the French economy during the last two decades.
Subject: Corporate sector, Economic sectors, Financial institutions, Labor, Potential output, Production, Production growth, Stocks
Keywords: Asia and Pacific, capital, Corporate sector, East Asia, Eastern Europe, EC integration, EC trade integration variable, EC variable, estimate, integrating vector, likelihood ratio test, Potential output, production function, Production growth, R&D capital, Southeast Asia, Stocks, vector, WP
Pages:
36
Volume:
1993
DOI:
Issue:
011
Series:
Working Paper No. 1993/011
Stock No:
WPIEA0111993
ISBN:
9781451925975
ISSN:
1018-5941
Notes
Also published in Staff Papers, Vol. 40, No. 3, September 1993.
