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Productivity bias hypothesis: evidence from South Asia

Author

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  • Sajid Anwar
  • Ali

Abstract

Most existing studies have attempted to test the productivity bias hypothesis by making use of the cross-section data. This article utilizes country-level time series data from Penn World Tables to examine the productivity bias hypothesis for five South Asian economies (namely, Bangladesh, India, Nepal, Pakistan and Sri Lanka). We make use of Johansen's cointegration approach and vector error correction modelling. The empirical analysis presented in this article shows that purchasing power parity theory holds for all countries considered. However, the productivity bias hypothesis appears to hold only in the case of Bangladesh and Nepal.

Suggested Citation

  • Sajid Anwar & Ali, 2015. "Productivity bias hypothesis: evidence from South Asia," Applied Economics Letters, Taylor & Francis Journals, vol. 22(17), pages 1389-1394, November.
    • Handle: RePEc:taf:apeclt:v:22:y:2015:i:17:p:1389-1394
    DOI: 10.1080/13504851.2015.1034832
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    Cited by:

    1. Ferda Halicioglu & Natalya Ketenci, 2018. "Testing the productivity bias hypothesis in Middle East countries," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 45(5), pages 922-931, October.
    2. Matthew Zook & Michael H Grote, 2017. "The microgeographies of global finance: High-frequency trading and the construction of information inequality," Environment and Planning A, , vol. 49(1), pages 121-140, January.
    3. Dada James Temitope & Olomola Philip Akanni & Ajide Folorunsho Monsur, 2020. "Productivity Bias Hypothesis: New Evidence from Parallel Market Exchange Rate," Economics, Sciendo, vol. 8(1), pages 31-40, June.
    4. Vié, Marie-Sklaerder & Zufferey, Nicolas & Cordeau, Jean-François, 2019. "Solving the Wire-Harness Design Problem at a European car manufacturer," European Journal of Operational Research, Elsevier, vol. 272(2), pages 712-724.

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