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Accounting for Growth With New Inputs

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Author Info
Robert C. Feenstra
James R. Markusen

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Abstract

In this paper we examine how to account for growth when new inputs are being created. In particular, we obtain a decomposition of growth into that due to a higher quantity of existing inputs, and that due to a greater range of inputs. This decomposition is first obtained for a single firm, with a CES production function. We then generalize to the GNP function of an economy. and again show how a decomposition of growth in GNP can be obtained. An example is presented of a two-sector economy, where new inputs are endogenously created each period, and a simple aggregate production function exists. Data for this economy are simulated, and the GNP function is estimated using various different measures of the factor inputs.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 4114.

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Date of creation: Jul 1992
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Handle: RePEc:nbr:nberwo:4114

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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.:
  1. Ethier, Wilfred J, 1982. "National and International Returns to Scale in the Modern Theory of International Trade," American Economic Review, American Economic Association, vol. 72(3), pages 389-405, June. [Downloadable!] (restricted)
  2. Markusen, James R, 1989. "Trade in Producer Services and in Other Specialized Intermediate Inputs," American Economic Review, American Economic Association, vol. 79(1), pages 85-95, March. [Downloadable!] (restricted)
  3. Sato, Kazuo, 1976. "The Ideal Log-Change Index Number," The Review of Economics and Statistics, MIT Press, vol. 58(2), pages 223-28, May. [Downloadable!] (restricted)
  4. Solow, Robert M, 1988. "Growth Theory and After," American Economic Review, American Economic Association, vol. 78(3), pages 307-17, June. [Downloadable!] (restricted)
  5. Feenstra, Robert C & Markusen, James R & Zeile, William, 1992. "Accounting for Growth with New Inputs: Theory and Evidence," American Economic Review, American Economic Association, vol. 82(2), pages 415-21, May. [Downloadable!] (restricted)
  6. Robert C. Feenstra, 1994. "New Goods and Index Numbers: U.S. Import Prices," NBER Working Papers 3610, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  7. James R. Markusen, 1990. "First Mover Advantages, Blockaded Entry, And the Economics of Uneven Development," NBER Working Papers 3284, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  8. Benhabib, Jess & Jovanovic, Boyan, 1991. "Externalities and Growth Accounting," American Economic Review, American Economic Association, vol. 81(1), pages 82-113, March. [Downloadable!] (restricted)
    Other versions:
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(explanations, 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.)

  1. Funke, Michael & Ruhwedel, Ralf, 2000. "Product Variety and Economic Growth - Empirical Evidence for the OECD Countries," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
  2. Aleksynska, Mariya & Gaisford, James & Kerr, William, 2003. "Foreign Direct Investment and Growth in Transition Economies," MPRA Paper 7668, University Library of Munich, Germany, revised Dec 2003. [Downloadable!]
  3. Rutherford, Thomas F. & Tarr, David G., 1998. "Trade liberalization and endogenous growth in a small open economy : a quantitative assessment," Policy Research Working Paper Series 1970, The World Bank. [Downloadable!]
  4. Ralf Ruhwedel & Michael Funke, 2005. "Export Variety and Economic Growth in East European Transition Economies," Quantitative Macroeconomics Working Papers 20502, Hamburg University, Department of Economics. [Downloadable!]
    Other versions:
  5. Amiti, Mary & Konings, Jozef, 2005. "Trade Liberalization, Intermediate Inputs and Productivity: Evidence from Indonesia," CEPR Discussion Papers 5104, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  6. Wolfgang Keller, 2001. "International Technology Diffusion," NBER Working Papers 8573, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  7. Alejandro Cuñat & Marco Maffezzoli, . "Trade Integration and Growth," Working Papers 220, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University. [Downloadable!]
  8. Ralf Ruhwedel & Michael Funke, 2000. "Export Variety and Export Performance: Empirical Evidence from East Asia," Quantitative Macroeconomics Working Papers 20006, Hamburg University, Department of Economics. [Downloadable!]
    Other versions:
  9. Robert C. Feenstra & Dorsati Madani & Tzu-Han Yang & Chi-Yuan Liang, 1997. "Testing Endogenous Growth in South Korea and Taiwan," NBER Working Papers 6028, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  10. Lambert, David K. & Schuck, Eric C. & Jin, Hyun & Koo, Won W., 2003. "The Effects Of Us/Canada Trade On Production Costs And Productivity," 2003 Annual meeting, July 27-30, Montreal, Canada 22008, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  11. Robert C. Feenstra, 2006. "New Evidence on the Gains from Trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 142(4), pages 617-641, December. [Downloadable!] (restricted)
  12. Barbara Dluhosch & Michael Burda, 2000. "Cost Competition, Fragmentation and Globalization," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
  13. Madani, Dorsati H., 2001. "Regional integration and industrial growth among developing countries - the case of three ASEAN members," Policy Research Working Paper Series 2697, The World Bank. [Downloadable!]
  14. Christian Broda & Joshua Greenfield & David Weinstein, 2006. "From Groundnuts to Globalization: A Structural Estimate of Trade and Growth," NBER Working Papers 12512, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  15. Christos Pantzios, 2000. "Trade Restrictiveness in the Presence of 'New' Goods," Open Economies Review, Springer, vol. 11(1), pages 93-101, January. [Downloadable!] (restricted)
  16. Michael C. Burda & Barbara Dluhosch, 2000. "Fragmentation, Globalization and Labor Markets," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
  17. Henk L.M. Kox, 2003. "Sources of structural growth in business services," Industrial Organization 0309004, EconWPA. [Downloadable!]
  18. Madani, Dorsati H., 2001. "South-South regional integration and industrial growth : the case of the Andean Pact," Policy Research Working Paper Series 2614, The World Bank. [Downloadable!]
  19. Robert C. Feenstra, 1994. "New Goods and Index Numbers: U.S. Import Prices," NBER Working Papers 3610, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  20. Yener Kandogan, 2003. "TDoes Product Differentiation Explain The Increase in Exports of Transition Countries?," William Davidson Institute Working Papers Series 2003-599, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
  21. Yener Kandogan, 2003. "The Reorientation of Transition Countries’ Exports: Changes in Quantity, Quality and Variety," William Davidson Institute Working Papers Series 2003-631, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
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