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Development accounting with intermediate goods

Author

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  • Grobovšek Jan

    (University of Edinburgh, Department of School of Economics, Edinburgh, United Kingdom of Great Britain and Northern Ireland)

Abstract

I use a simple development accounting framework that distinguishes between goods and service industries on the one hand, and final and intermediate output on the other hand, to document the following facts. First, poorer countries are particularly inefficient in the production of intermediate relative to final output. Second, they are not necessarily inefficient in goods relative to service industries. Third, they present low measured labor productivity in goods industries because these are intensive intermediate users, and because their intermediate TFP is relatively low. Fourth, the elasticity of aggregate GDP with respect to sector-neutral TFP is large.

Suggested Citation

  • Grobovšek Jan, 2018. "Development accounting with intermediate goods," The B.E. Journal of Macroeconomics, De Gruyter, vol. 18(1), pages 1-27, January.
    • Handle: RePEc:bpj:bejmac:v:18:y:2018:i:1:p:27:n:10
    DOI: 10.1515/bejm-2016-0223
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    Cited by:

    1. Sen, A., 2024. "Structural Change at a Disaggregated Level: Sectoral Heterogeneity Matters," Janeway Institute Working Papers 2410, Faculty of Economics, University of Cambridge.
    2. Sen, Ali, 2020. "Structural change within the services sector, Baumol's cost disease, and cross-country productivity differences," MPRA Paper 99614, University Library of Munich, Germany.
    3. Sen, A., 2024. "Digitalization and Productivity Growth Slowdown in Production Networks," Janeway Institute Working Papers 2431, Faculty of Economics, University of Cambridge.
    4. Harald Fadinger & Christian Ghiglino & Mariya Teteryatnikova, 2022. "Income Differences, Productivity, and Input-Output Networks," American Economic Journal: Macroeconomics, American Economic Association, vol. 14(2), pages 367-415, April.
    5. Margarida Duarte & Diego Restuccia, 2020. "Relative Prices and Sectoral Productivity," Journal of the European Economic Association, European Economic Association, vol. 18(3), pages 1400-1443.
    6. Fadinger, Harald & Ghiglino, Christian & Teteryatnikova, Mariya, 2015. "Income differences and input-output structure," Working Papers 15-11, University of Mannheim, Department of Economics.
    7. Fadinger, Harald & Ghiglino, Christian & Teteryatnikova, Mariya, 2015. "Income differences and input-output structure," Working Papers 15-11, University of Mannheim, Department of Economics.

    More about this item

    Keywords

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    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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