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http://dspace.mediu.edu.my:8181/xmlui/handle/10419/3878| Title: | The Solow model in the empirics of growth and trade |
| Keywords: | O40 F11 ddc:330 Solow Model Lerner diagram Solow-Modell Wachstumstheorie Steady-State-Wachstum Kapitalintensität Außenwirtschaftstheorie Internationale Arbeitsteilung Schätzung Theorie Welt |
| Issue Date: | 16-Oct-2013 |
| Publisher: | Kiel Institute for the World Economy (IfW) Kiel |
| Description: | Translated to a cross-country context, the Solow model (Solow, 1956) predicts that international differences in steady state output per person are due to international differences in technology for a constant capital output ratio. However, most of the cross-country growth literature that refers to the Solow model has employed a specification where steady state differences in output per person are due to international differences in the capital output ratio for a constant level of technology. My empirical results show that the former specification can summarize the data quite well by using a measure of institutional technology and treating the capital output ratio as part of the regression constant. This reinterpretation of the cross-country Solow model provides an interesting implication for empirical studies of international trade. Harrod-neutral technology differences as presumed by the Solow model can explain why countries have different factor intensities and may end up in different cones of specialization. |
| URI: | http://koha.mediu.edu.my:8181/xmlui/handle/10419/3878 |
| Other Identifiers: | http://hdl.handle.net/10419/3878 ppn:517652315 ppn:517652315 |
| Appears in Collections: | EconStor |
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