TY - JOUR
T1 - Capital-labor ratios and total factor productivity in the Baassa-Samuelson model
AU - Kakkar, Vikas
PY - 2002
Y1 - 2002
N2 - The paper investigates the relationship between sectoral capital-labor ratios and total factor productivity (TFP) in the context of the Balassa-Samuelson model. It is shown that, under certain assumptions, the model implies that both traded- and nontraded-goods sectors' capital-labor ratios should be cointegrated with the traded-goods sector's TFP. Evidence from an intersectoral database for 14 OECD countries broadly supports this implication of the model. In addition to shedding light on the evolution of sectoral capital-labor ratios, the results also alleviate concerns regarding the reliability of capital stock data.
AB - The paper investigates the relationship between sectoral capital-labor ratios and total factor productivity (TFP) in the context of the Balassa-Samuelson model. It is shown that, under certain assumptions, the model implies that both traded- and nontraded-goods sectors' capital-labor ratios should be cointegrated with the traded-goods sector's TFP. Evidence from an intersectoral database for 14 OECD countries broadly supports this implication of the model. In addition to shedding light on the evolution of sectoral capital-labor ratios, the results also alleviate concerns regarding the reliability of capital stock data.
UR - http://www.scopus.com/inward/record.url?scp=0036190691&partnerID=8YFLogxK
UR - https://www.scopus.com/record/pubmetrics.uri?eid=2-s2.0-0036190691&origin=recordpage
M3 - RGC 21 - Publication in refereed journal
SN - 0965-7576
VL - 10
SP - 166
EP - 176
JO - Review of International Economics
JF - Review of International Economics
IS - 1
ER -
