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

Author

Listed:
  • 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.

Suggested Citation

  • Ferreira Pedro C. & Pessoa Samuel A & Veloso Fernando A, 2008. "The Evolution of International Output Differences (1970-2000): From Factors to Productivity," The B.E. Journal of Macroeconomics, De Gruyter, vol. 8(1), pages 1-34, February.
    • Handle: RePEc:bpj:bejmac:v:8:y:2008:i:1:n:3
    DOI: 10.2202/1935-1690.1578
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    Cited by:

    1. Trejos, Alberto & Ferreira, Pedro Cavalcanti, 2008. "Trade in intermediate goods and total factor productivity," FGV EPGE Economics Working Papers (Ensaios Economicos da EPGE) 676, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil).
    2. Veloso, Fernando A. & Ferreira, Pedro Cavalcanti & Pessôa, Samuel de Abreu, 2006. "The evolution of TFP in Latin America," FGV EPGE Economics Working Papers (Ensaios Economicos da EPGE) 620, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil).
    3. Brinca, Pedro & Costa-Filho, João, 2021. "Economic depression in Brazil: the 2014-2016 fall," MPRA Paper 107298, University Library of Munich, Germany.
    4. Pedro Cavalcanti Ferreira & Alberto Trejos, 2008. "Trade in intermediate goods and total factor productivity," Working Papers 08_18, Universidade de São Paulo, Faculdade de Economia, Administração e Contabilidade de Ribeirão Preto.
    5. Ferreira, Pedro Cavalcanti & Pessôa, Samuel de Abreu & Veloso, Fernando A., 2010. "The evolution of TFP in Latin America: high productivity when distortions were high?," FGV EPGE Economics Working Papers (Ensaios Economicos da EPGE) 699, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil).
    6. Chad Turner & Robert Tamura & Sean Mulholland, 2013. "How important are human capital, physical capital and total factor productivity for determining state economic growth in the United States, 1840–2000?," Journal of Economic Growth, Springer, vol. 18(4), pages 319-371, December.
    7. 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).
    8. Gouranga Das & Hiranya Nath & Halis Murat Yildiz, 2009. "International Productivity Differences and the Roles of Domestic Investment, FDI and Trade," International Economic Journal, Taylor & Francis Journals, vol. 23(1), pages 121-142.
    9. 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 (IfW Kiel).
    10. Ferreira, Pedro Cavalcanti & Trejos, Alberto, 2010. "Gains from trade and measured total factor productivity," FGV EPGE Economics Working Papers (Ensaios Economicos da EPGE) 711, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil).
    11. Mello Marcelo, 2009. "Estimates of the Marginal Product of Capital, 1970-2000," The B.E. Journal of Macroeconomics, De Gruyter, vol. 9(1), pages 1-30, May.
    12. 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).

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