The Neoclassical Revival in Growth Economics: Has It Gone Too Far?

Klenow, Peter J.; Rodrı́guez-Clare, Andrés

doi:10.2307/3585220

Cited by 569 publications

(573 citation statements)

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“…Development accounting exercises such as those by Caselli (2005), Hall and Jones (1999), and Klenow and Rodríguez-Clare (1997) show that roughly 50 percent of the differences in income per worker are accounted for by differences in factors of production (capital and labor) and the rest is attributed to differences in aggregate total factor productivity (TFP).…”

Section: Introductionmentioning

confidence: 99%

Capital Goods Trade and Economic Development

2014

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We argue that international trade in capital goods has quantitatively important effects on economic development through two channels: (i) capital formation and (ii) aggregate TFP. We embed a multi country, multi sector Ricardian model of trade into a neoclassical growth model. Barriers to trade result in a misallocation of factors both within and across countries. Our model matches several trade and development facts within a unified framework. It is consistent with the world distribution of capital goods production, cross-country differences in investment rate and price of final goods, and cross-country equalization of price of capital goods. The cross-country income differences decline by more than 50 percent when trade frictions are eliminated, with 80 percent of the change in each country's income attributable to change in capital.

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Section: Introductionmentioning

confidence: 99%

Capital Goods Trade and Economic Development

2014

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“…To address these questions, this paper uses the technique of development accounting to decompose regional differences in output per worker into a component capturing the local availability of measurable production factors and a component related to TFP. Using development accounting to assess the relative contributions of differences in production factors versus TFP across countries is standard in the growth and development literature (Caselli, 2005;Hall & Jones, 1999;Klenow & Rodríguez-Clare, 1997) and has produced important insights regarding the mechanics of economic development. 3 Yet, it has to our knowledge never been systematically applied at the regional level.…”

Section: Introductionmentioning

confidence: 99%

Regional economic development in Europe: the role of total factor productivity

2017

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Regional economic development in Europe: the role of total factor productivity. Regional Studies. This paper documents the fact that the large and persistent differences in economic development across subnational regions in European Union countries can largely be attributed to differences in total factor productivity (TFP). Applying the technique of development accounting, the paper decomposes differences in output per worker across 257 European Union regions into a component due to the local availability of production factors and a component due to TFP. As the analysis reveals, TFP differences are large even within countries, and are strongly related to economic geography and historical development paths. This suggests limited interregional diffusion of technology and of efficient production practices. L'aménagement du territoire en Europe: le rôle de la productivité globale des facteurs. Regional Studies. Cet article démontre que les importants écarts de développement économique qui persistent à travers les régions infranationales situées dans les pays-membres de l'Union européenne s'expliquent dans une large mesure par les écarts de productivité globales des facteurs (PGF). En appliquant la méthode de la comptabilité de développement (development accounting), on décompose les écarts de rendement par travailleur selon 257 régions de l'Union européenne en une composante relative à la disponibilité locale des facteurs de production et une deuxième composante qui s'explique par la PGF. Comme laisse voir l'analyse, les écarts de PGF s'avèrent importants même au sein des pays, et se rapportent étroitement à la géographie économique et aux sentiers de développement historiques. Cela laisse supposer une diffusion interrégionale limitée de la technologie et des procédés de production efficaces. MOTS-CLÉSaménagement du territoire; productivité globale des facteurs; comptabilité de développement; régions européennes

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“…Solow (1956) originally outlined a framework that linked cross-country differences in TFP with cross-country differences in income per capita. This is confirmed in extensive research, see Klenow and Rodriguez-Clare (1997) and Hall and Jones (1999), who highlight that the majority of income differences between countries are associated to differences in TFP.…”

Section: Contribution Of Software To Productivity Growthmentioning

confidence: 57%