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The Evolution of International Output Differences (1970-2000): From Factors to Productivity

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  • Ferreira Pedro C.

    ()
    (Fundação Getulio Vargas)

  • Pessoa Samuel A

    ()
    (Fundação Getulio Vargas)

  • Veloso Fernando A

    ()
    (Ibmec Rio de Janeiro)

Abstract

This article presents a group of exercises of level and growth decomposition of output per worker using cross-country data from 1970 to 2000. It is shown that in the early seventies factors of production (capital and education) were the main source of output dispersion across economies and that productivity variance was considerably smaller than in later years. Only after the mid-eighties did the prominence of productivity start to show up in the data, as the majority of the literature has found. The growth decomposition exercises show that the reversal of relative importance of productivity vis-à-vis factors is explained by the very good (bad) performance of productivity of fast- (slow-) growing economies. Although growth in the period, on average, is mostly due to factor accumulation, its variance is explained by productivity.

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Bibliographic Info

Article provided by De Gruyter in its journal The B.E. Journal of Macroeconomics.

Volume (Year): 8 (2008)
Issue (Month): 1 (February)
Pages: 1-34

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Handle: RePEc:bpj:bejmac:v:8:y:2008:i:1:n:3

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Cited by:
  1. Ferreira, Pedro Cavalcanti & Trejos, Alberto, 2010. "Gains from trade and measured total factor productivity," Economics Working Papers (Ensaios Economicos da EPGE) 711, FGV/EPGE Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
  2. Joel López Real, 2011. "Family reunification or point-based immigration system? The case of the U.S. and Mexico," Working Papers 2011/19, Institut d'Economia de Barcelona (IEB).
  3. Turner, Chad & Tamura, Robert & Mulholland, Sean, 2008. "How important are human capital, physical capital and total factor productivity for determining state economic growth in the United States: 1840-2000?," MPRA Paper 7715, University Library of Munich, Germany.
  4. Ferreira, Pedro Cavalcanti & Pessôa, Samuel de Abreu & Veloso, Fernando A., 2011. "On The Evolution of TFP in Latin America (revised)," Economics Working Papers (Ensaios Economicos da EPGE) 723, FGV/EPGE Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
  5. Ferreira, Pedro Cavalcanti Gomes & Pessôa, Samuel de Abreu & Veloso, Fernando A., 2010. "The Evolution of TFP in Latin America: High Productivity when Distortions Were High?," Economics Working Papers (Ensaios Economicos da EPGE) 699, FGV/EPGE Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
  6. Trejos, Alberto & Ferreira, Pedro Cavalcanti Gomes, 2008. "Trade in intermediate goods and total factor productivity," Economics Working Papers (Ensaios Economicos da EPGE) 676, FGV/EPGE Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
  7. López Real, Joel, 2011. "Family reunification or point-based immigration system? The case of the United States and Mexico," Economics Discussion Papers 2011-27, Kiel Institute for the World Economy.

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