Advanced Search
MyIDEAS: Login to save this paper or follow this series

Development Accounting in a Heckscher-Ohlin World

Contents:

Author Info

  • Harald Fadinger
Registered author(s):

    Abstract

    This paper tries to contribute to the strand of literature that investigates the question to what extend differences in per capita income between countries are due to differences in factor endowments like human- and physical capital on the one hand and due to differences in technology on the other hand. In particular, I am trying to assess to what extend structural transformation, ie the ability of a country to specialize in the production of goods that intensively use the factors with which it is abundantly endowed, has an important role in determining cross country income differences. I find that when productivities are country specific, for realistic parameter values structural transformation plays little role and productivity differences between countries remain large. However, when I allow for factor augmenting technology differences and factors are complementary in sectoral production, there seem to be large differences in the productivity of physical capital that are strongly correlated with per capita income, while human capital seems to have an inverse hump shape. This result is ad odds with Caselli (2005), who finds that poor countries use capital more efficiently than rich countries, while having a lower productivity of human capital. Finally, I use trade data and the Heckscher-Ohlin-Vanek equations to assess the plausibility of my calibrations and find a good fit for the model with factor specific productivities and complementary factors.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.degit.ifw-kiel.de/papers/degit_11/C011_017.pdf
    Our checks indicate that this address may not be valid because: 500 Can't connect to www.degit.ifw-kiel.de:80 (Bad hostname). If this is indeed the case, please notify (Michaela Rank)
    Download Restriction: no

    Bibliographic Info

    Paper provided by DEGIT, Dynamics, Economic Growth, and International Trade in its series DEGIT Conference Papers with number c011_017.

    as in new window
    Length: 40 pages
    Date of creation: Jun 2006
    Date of revision:
    Handle: RePEc:deg:conpap:c011_017

    Contact details of provider:
    Postal: Kiellinie 66, D-24105 Kiel
    Phone: +49 431 8814-206
    Fax: +49 431 85853
    Email:
    Web page: http://www.degit.ifw-kiel.de/
    More information through EDIRC

    Related research

    Keywords:

    This paper has been announced in the following NEP Reports:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Alan Deardorff, 1998. "Determinants of Bilateral Trade: Does Gravity Work in a Neoclassical World?," NBER Chapters, in: The Regionalization of the World Economy, pages 7-32 National Bureau of Economic Research, Inc.
    2. Werner Antweiler & Daniel Trefler, 2002. "Increasing Returns and All That: A View from Trade," American Economic Review, American Economic Association, American Economic Association, vol. 92(1), pages 93-119, March.
    3. N. Gregory Mankiw & David Romer & David N. Weil, 1990. "A Contribution to the Empirics of Economic Growth," NBER Working Papers 3541, National Bureau of Economic Research, Inc.
    4. Robert E. Hall & Charles I. Jones, 1999. "Why Do Some Countries Produce So Much More Output per Worker than Others?," NBER Working Papers 6564, National Bureau of Economic Research, Inc.
    5. Ananth Seshadri & Rodolfo Manuelli, 2005. "Human Capital and the Wealth of Nations," 2005 Meeting Papers, Society for Economic Dynamics 56, Society for Economic Dynamics.
    6. Trefler, Daniel, 1995. "The Case of the Missing Trade and Other Mysteries," American Economic Review, American Economic Association, American Economic Association, vol. 85(5), pages 1029-46, December.
    7. Donald R. Davis & David E. Weinstein, 2002. "The factor content of trade," Discussion Papers, Columbia University, Department of Economics 0102-01, Columbia University, Department of Economics.
    8. King, Robert G. & Levine, Ross & DEC, 1994. "Capital fundamentalism, economic development, and economic growth," Policy Research Working Paper Series 1285, The World Bank.
    9. Debaere, Peter & Demiroglu, Ufuk, 2003. "On the similarity of country endowments," Journal of International Economics, Elsevier, Elsevier, vol. 59(1), pages 101-136, January.
    10. Deardorff, A.V., 1991. "The Possibility of Factor Price Equalization, Revisited," Working Papers, Research Seminar in International Economics, University of Michigan 277, Research Seminar in International Economics, University of Michigan.
    11. Demiroglu, Ufuk & Koo Yun, Kwan, 1999. "The lens condition for factor price equalization," Journal of International Economics, Elsevier, Elsevier, vol. 47(2), pages 449-456, April.
    12. Ben S. Bernanke & Refet S. Gürkaynak, 2002. "Is Growth Exogenous? Taking Mankiw, Romer, and Weil Seriously," NBER Chapters, in: NBER Macroeconomics Annual 2001, Volume 16, pages 11-72 National Bureau of Economic Research, Inc.
    13. Douglas Gollin, 2002. "Getting Income Shares Right," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 110(2), pages 458-474, April.
    14. Edward C. Prescott, 1997. "Needed: a theory of total factor productivity," Staff Report, Federal Reserve Bank of Minneapolis 242, Federal Reserve Bank of Minneapolis.
    15. Banerjee, Abhijit V. & Duflo, Esther, 2005. "Growth Theory through the Lens of Development Economics," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 7, pages 473-552 Elsevier.
    16. Davis, D.R. & Weinstein, D.E., 1999. "An Account of Global Factor Trade," Working Papers, Research Seminar in International Economics, University of Michigan 435, Research Seminar in International Economics, University of Michigan.
    17. Peter Klenow & Andrés Rodríguez-Clare, 1997. "The Neoclassical Revival in Growth Economics: Has It Gone Too Far?," NBER Chapters, in: NBER Macroeconomics Annual 1997, Volume 12, pages 73-114 National Bureau of Economic Research, Inc.
    18. Trefler, Daniel & Zhu, Susan Chun, 2010. "The structure of factor content predictions," Journal of International Economics, Elsevier, Elsevier, vol. 82(2), pages 195-207, November.
    19. Trefler, Daniel, 1993. "International Factor Price Differences: Leontief Was Right!," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 101(6), pages 961-87, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:deg:conpap:c011_017. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michaela Rank).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.