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The Productivity of Nations

  • Robert E. Hall
  • Charles I. Jones

Output per worker varies enormously across countries. Why? Our analysis shows that differences in governmental, cultural, and natural infrastructure are important sources of this variation. According to our results, a high-productivity country (i) has institutions that favor production over diversion, (ii) is open to international trade, (iii) has at least some private ownership, (iv) speaks an international language, and (v) is located in a temperate latitude far from the equator. A favorable infrastructure helps a country both by stimulating the accumulation of human and physical capital and by raising its total factor productivity.

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Paper provided by Stanford University, Department of Economics in its series Working Papers with number 96012.

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Handle: RePEc:wop:stanec:96012
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