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Input substitutability and cross-country variation in sectoral linkages

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  • Sinha, Rishabh

Abstract

Using cross-country data, I find the elasticity of substitution across sectoral inputs to be less than one for the broad sectors of the economy. Differences in relative prices account for a non-trivial share of the cross-country variation in sectoral linkages.

Suggested Citation

  • Sinha, Rishabh, 2019. "Input substitutability and cross-country variation in sectoral linkages," Economics Letters, Elsevier, vol. 178(C), pages 121-124.
    • Handle: RePEc:eee:ecolet:v:178:y:2019:i:c:p:121-124
    DOI: 10.1016/j.econlet.2019.02.025
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    More about this item

    Keywords

    Sectoral linkages; Input substitutability; Distortions in intermediate markets;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • 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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