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Treating Intangible Inputs as Investment Goods; The Impact on Canadian GDP

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  • Nazim Belhocine

Abstract

This paper constructs a data set to document firms' expenditures on an identifiable list of intangible items and examines the implications of treating intangible spending as an acquisition of final (investment) goods on GDP growth for Canada. It finds that investment in intangible capital by 2002 is almost as large as the investment in physical capital. This result is in line with similar findings for the U.S. and the U.K. Furthermore, the growth in GDP and labor productivity may be underestimated by as much as 0.1 percentage point per year during this same period.

Suggested Citation

  • Nazim Belhocine, 2009. "Treating Intangible Inputs as Investment Goods; The Impact on Canadian GDP," IMF Working Papers 09/240, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:09/240
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    References listed on IDEAS

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    1. Mauro Giorgio Marrano & Jonathan Haskel, 2006. "How Much Does the UK Invest in Intangible Assets?," Working Papers 578, Queen Mary University of London, School of Economics and Finance.
    2. Carol Corrado & Charles Hulten & Daniel Sichel, 2005. "Measuring Capital and Technology: An Expanded Framework," NBER Chapters,in: Measuring Capital in the New Economy, pages 11-46 National Bureau of Economic Research, Inc.
    3. Carol A. Corrado & Charles R. Hulten & Daniel E. Sichel, 2006. "Intangible Capital and Economic Growth," NBER Working Papers 11948, National Bureau of Economic Research, Inc.
    4. Kyoji Fukao & Tsutomu Miyagawa & Kentaro Mukai & Yukio Shinoda & Konomi Tonogi, 2009. "Intangible Investment In Japan: Measurement And Contribution To Economic Growth," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 55(3), pages 717-736, September.
    5. Carlos J. Serrano, 2010. "The dynamics of the transfer and renewal of patents," RAND Journal of Economics, RAND Corporation, vol. 41(4), pages 686-708.
    6. Nazim Belhocine, 2008. "The Embodiment of Intangible Investment Goods: a Q-Theory Approach," Working Papers 1217, Queen's University, Department of Economics.
    7. Baldwin, John R. & Beckstead, Desmond & Gellatly, Guy, 2005. "Canada's Investments in Science and Innovation: Is the Existing Concept of Research and Development Sufficient?," Economic Analysis (EA) Research Paper Series 2005032e, Statistics Canada, Analytical Studies Branch.
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    Citations

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    Cited by:

    1. Nazim Belhocine, 2008. "The Stock of Intangible Capital in Canada: Evidence from the Aggregate Value of Securities," Working Papers 1216, Queen's University, Department of Economics.
    2. Nazim Belhocine, 2008. "The Embodiment of Intangible Investment Goods: a Q-Theory Approach," Working Papers 1217, Queen's University, Department of Economics.
    3. Dutz, Mark A. & Kannebley, Sergio Jr. & Scarpelli, Maira & Sharma, Siddharth, 2012. "Measuring intangible assets in an emerging market economy: an application to Brazil," Policy Research Working Paper Series 6142, The World Bank.
    4. Tatiana Muntean, 2014. "Intangible Assets and their Contribution to Labour Productivity Growth in Ontario," International Productivity Monitor, Centre for the Study of Living Standards, vol. 27, pages 22-39, Fall.
    5. MORIKAWA Masayuki, 2012. "Financial Constraints in Intangible Investments: Evidence from Japanese firms," Discussion papers 12045, Research Institute of Economy, Trade and Industry (RIETI).
    6. Giglio, Stefano & Severo, Tiago, 2012. "Intangible capital, relative asset shortages and bubbles," Journal of Monetary Economics, Elsevier, vol. 59(3), pages 303-317.
    7. International Monetary Fund, 2016. "Ireland; Selected Issues," IMF Staff Country Reports 16/257, International Monetary Fund.
    8. repec:dau:papers:123456789/5002 is not listed on IDEAS

    More about this item

    Keywords

    Canada; Cross country analysis; Data collection; Capital transactions; Economic growth; Gross domestic product; National income accounts; Investment; Labor productivity; Intangible Capital Goods; Intangible Investment; Growth; r & d; national income; gdp growth; real gdp;

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity

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