A Versus K Revisited: Evidence from Selected MENA Countries
AbstractThis paper reconsiders the A versus K debate, namely, which factor is the leading contributor to economic growth? productivity gains (A) or factor accumulation (K). The growth accounting analysis is conducted for ten Middle Eastern and North African (MENA) countries over the period 1960-1998. The long-run share of capital in national income is estimated using cointegration (country-specific) and panel data (region-specific) methods. We find that for most of the countries in our sample the share of capital is much higher than the conventional share of 0.3-0.4. The growth accounting exercise conducted with the incorporation of human capital reveals that for the MENA region the contribution of productivity gains to economic growth is negligible and frequently even detrimental. Thus, we conclude that it is factor (both physical and human) accumulation that drives the economic performance of MENA economies.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 1114.
Date of creation: 2005
Date of revision:
Growth Accounting; Productivity and Factor Accumulation; MENA; Middle-East; Cointegration; Panel Data;
Other versions of this item:
- Aamer Abu-Qarn & Suleiman Abu-Bader, 2005. "A Versus K Revisited: Evidence from Selected MENA Countries," Working Papers 205, Ben-Gurion University of the Negev, Department of Economics.
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
- O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
- C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models &bull Diffusion Processes
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