International productivity and factor price comparisons
AbstractUsing OECD input–output tables for a diverse group of 33 countries in the year 2000 and estimates of each country's factor stocks, I compute factor payments for aggregate labor and capital with value-added data adjusted for self-employment by sector. Using a detailed technology matrix for the U.S., I compute factor-specific productivity measures in each country relative to the U.S., and show that these measures are strongly correlated with the pattern of wages and rental rates. I find that many low income countries with low labor productivity have relatively high capital productivity. I also find a distinctive pattern between factor productivity and factor payments depending on whether a country has a high or low wage-rental ratio compared to the U.S. I show these findings are consistent with the existence of sector-based differences in production technology and complementarities between factors.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of International Economics.
Volume (Year): 87 (2012)
Issue (Month): 2 ()
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Web page: http://www.elsevier.com/locate/inca/505552
Factor-specific productivity; TFP differences; Factor payments;
Find related papers by JEL classification:
- F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
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