Sources of Economic Growth: An Extensive Growth Accounting Exercise

Author/Editor:

Abdelhak S Senhadji

Publication Date:

June 1, 1999

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:

A growth accounting exercise is conducted for 88 countries for 1960-94 to examine the source of cross-country differences in total factor productivity (TFP) levels. Two differences distinguish this analysis from that of the related literature. First, the critical technology parameter—the share of physical capital in real output—is econometrically estimated and the usual assumption of identical technology across regions is relaxed. Second, while the few studies on the determinants of cross-country differences in TFP have focused on growth rates of real output this analysis is on levels. Recent theoretical as well as empirical arguments point to the level of TFP as the more relevant variable to explain.

Series:

Working Paper No. 1999/077

Subject:

Economic growth Growth accounting Human capital Labor Production Production growth Total factor productivity

English

Publication Date:

June 1, 1999

ISBN/ISSN:

9781451849974/1018-5941

Stock No:

WPIEA0771999

Pages:

41

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