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Empirics for Marginal Product of Capital

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  • Ly Dai Hung

    (VNU International School, Vietnam National University, Hanoi, Vietnam)

Abstract

We characterize the marginal product of capital on a cross-section data of 88 economies over 1980–2013. The marginal product of capital is increasing on savings misallocation rate, measuring the fraction of savings unconverted into investment, on productivity growth and on financial openness. One country with a higher marginal product of capital makes more domestic investment, receives more foreign direct investment (FDI) and equities inflows, but accumulates more foreign debts and reserves. Moreover, it also has a higher financial development level.

Suggested Citation

  • Ly Dai Hung, 2019. "Empirics for Marginal Product of Capital," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 11(01), pages 1-14, December.
    • Handle: RePEc:wsi:jicepx:v:11:y:2019:i:01:n:s1793993320500039
    DOI: 10.1142/S1793993320500039
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    Cited by:

    1. Ly Dai Hung & Nguyen Thi Thuy Hoan, 2022. "International Capital Flows When Safe Assets Scarcity Matters," South Asian Journal of Macroeconomics and Public Finance, , vol. 11(2), pages 151-167, December.
    2. Ly Dai Hung, 2020. "International Public Capital Flows," Working Papers hal-03090656, HAL.

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