Factor Endowment, Structural Coherence, and Economic Growth
IMF Working Papers, June 1, 2012
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- Factor Endowment, Structural Coherence, and Economic Growth
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Bibliographic details
- Authors: Natasha X Che
- Published: June 1, 2012
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781475505139.001
Summary and research question
- Structural coherence is defined as the degree that a country's industrial structure optimally reflects its factor endowment fundamentals.
- The paper studies the linkage between structural coherence and economic growth.
- Author: Natasha X Che.
- Publication date: June 1, 2012.
- Format: IMF Working Paper No. 2012/165, Pages: 42, Issue: 165, Volume: 2012, DOI: https://doi.org/10.5089/9781475505139.001, ISBN: 9781475505139, ISSN: 1018-5941, Stock No: WPIEA2012165.
Key empirical findings
- For the overall capital, the shares of capital intensive industries were significantly bigger with higher initial capital endowment and faster capital accumulation.
- There is a positive relationship between a country's aggregate output growth and the degree of structural coherence.
- Quantitative contribution: structural coherence with respect to the overall capital explains about 30% of the growth differential among sample countries.
Themes and variables analyzed
- Capital Accumulation
- capital endowment
- capital intensity
- Capital productivity
- aggregate output
- Economic Growth (growth rate)
- Total factor productivity
- Employment and Labor
- Human capital
- Information technology in revenue administration
- output share, resource allocation, share regression
- Structural Change and Structural Coherence
- Dependent variable considerations
Implications and interpretive points
- Structural coherence linked to factor endowment fundamentals appears to be an important determinant of differences in aggregate output growth across countries.
- Capital-related structural coherence (overall capital) is quantitatively sizeable, accounting for about 30% of cross-country growth differentials in the sample.
IMF Working Paper: Natasha X Che, "Factor Endowment, Structural Coherence, and Economic Growth", June 1, 2012, Working Paper No. 2012/165, DOI: https://doi.org/10.5089/9781475505139.001