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Construction productivity and global inequality

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  • Saumik Paul
  • Kunal Sen

Abstract

Two well established stylized facts of economic development are a strong correlation between investment and income, and large differences in investment rates across countries. Construction is the largest component of investment. This paper examines the implications of heterogeneity in construction productivity on cross-country income disparity. We estimate the 10:1 spread in construction productivity among 145 countries in 2005 as a factor of 61.7-fold.

Suggested Citation

  • Saumik Paul & Kunal Sen, 2023. "Construction productivity and global inequality," WIDER Working Paper Series wp-2023-135, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2023-135
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    References listed on IDEAS

    as
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    5. Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "Multilateral Comparisons of Output, Input, and Productivity Using Superlative Index Numbers," Economic Journal, Royal Economic Society, vol. 92(365), pages 73-86, March.
    6. Leroy P. Jones, 1976. "The Measurement of Hirschmanian Linkages," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 90(2), pages 323-333.
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    More about this item

    Keywords

    Productivity; Construction sector; Input–output; Economic linkages; Income inequality;
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