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Simultaneous estimation of income and price elasticities of export demand, scale economies and total factor productivity growth for Brazil

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  • Christine Mutz
  • Thomas Ziesemer

Abstract

This article focuses on a growth model in which (unlike other models) low (high) export demand elasticities and the fact that developing countries are importers of capital goods help explaining the slow (high) growth of these countries in the transition and in the steady state. The question arises whether export demand elasticities are low or high. For answering this question, export demand elasticities for the case of Brazil are obtained by estimation of the model. As a by-product of estimating the model, we obtain estimates for total-factor productivity growth and for scale economies. Based on the results from estimation we calculate steady-state growth rates, engine and handmaiden effects of growth as well as dynamic steady-state gains from trade. The model and the results are discussed in regard to several strands of literature.

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  • Christine Mutz & Thomas Ziesemer, 2008. "Simultaneous estimation of income and price elasticities of export demand, scale economies and total factor productivity growth for Brazil," Applied Economics, Taylor & Francis Journals, vol. 40(22), pages 2921-2937.
  • Handle: RePEc:taf:applec:v:40:y:2008:i:22:p:2921-2937 DOI: 10.1080/00036840600993916
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    Cited by:

    1. Ziesemer, Thomas H.W., 2010. "The impact of the credit crisis on poor developing countries: Growth, worker remittances, accumulation and migration," Economic Modelling, Elsevier, vol. 27(5), pages 1230-1245, September.
    2. Habi Yaremye, Alexis, 2008. "Economic Proximity and Technology Flows: South Africa?s Influence and the Role of Technological Interaction in Botswana?s Diversification Effort," WIDER Working Paper Series 092, World Institute for Development Economic Research (UNU-WIDER).
    3. repec:dgr:unumer:2009020 is not listed on IDEAS
    4. Thomas Ziesemer, 2011. "Growth with endogenous migration hump and the multiple, dynamically interacting effects of aid in poor developing countries," Applied Economics, Taylor & Francis Journals, vol. 43(30), pages 4865-4878.
    5. Thomas H.W. Ziesemer, 2014. "Country terms of trade: trends, unit roots, over-differencing, endogeneity, time dummies, and heterogeneity," International Review of Applied Economics, Taylor & Francis Journals, vol. 28(6), pages 767-796, September.
    6. Alexis Habiyaremye & Thomas H. W. Ziesemer, 2012. "Export demand elasticities and productivity as determinants of growth: estimates for Mauritius," Applied Economics, Taylor & Francis Journals, vol. 44(9), pages 1143-1158, March.
    7. Habiyaremye, Alexis & Ziesemer, Thomas, 2008. "Export Demand Elasticities as Determinants of Growth: Estimates for Mauritius," MERIT Working Papers 072, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    8. Saygılı, Hülya & Saygılı, Mesut, 2011. "Structural changes in exports of an emerging economy: Case of Turkey," Structural Change and Economic Dynamics, Elsevier, vol. 22(4), pages 342-360.
    9. Ziesemer, Thomas H.W., 2012. "Worker remittances, migration, accumulation and growth in poor developing countries: Survey and analysis of direct and indirect effects," Economic Modelling, Elsevier, vol. 29(2), pages 103-118.
    10. Thomas H.W. ZIESEMER, 2010. "Worker Remittances In Growth Regressions: The Problem Of Collinearity," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 10(2).
    11. Alexis Habiyaremye, 2013. "Imported Capital Goods and Manufacturing Productivity: Evidence from Botswana's Manufacturing Sector," South African Journal of Economics, Economic Society of South Africa, vol. 81(4), pages 581-604, December.
    12. Ziesemer, Thomas, 2009. "Collinearity in growth regressions: The example of worker remittances," MERIT Working Papers 020, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    13. Mutz, Christine & Ziesemer, Thomas, 2005. "Prebisch-Singer: Debates, Growth Model and Estimates," Research Memorandum 007, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).

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