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The Solow model in the empirics of growth and trade

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dc.creator Gundlach, Erich
dc.date 2006
dc.date.accessioned 2013-10-16T06:55:33Z
dc.date.available 2013-10-16T06:55:33Z
dc.date.issued 2013-10-16
dc.identifier http://hdl.handle.net/10419/3878
dc.identifier ppn:517652315
dc.identifier ppn:517652315
dc.identifier.uri http://koha.mediu.edu.my:8181/xmlui/handle/10419/3878
dc.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.
dc.language eng
dc.publisher Kiel Institute for the World Economy (IfW) Kiel
dc.relation Kieler Arbeitspapiere 1294
dc.rights http://www.econstor.eu/dspace/Nutzungsbedingungen
dc.subject O40
dc.subject F11
dc.subject ddc:330
dc.subject Solow Model
dc.subject Lerner diagram
dc.subject Solow-Modell
dc.subject Wachstumstheorie
dc.subject Steady-State-Wachstum
dc.subject Kapitalintensität
dc.subject Außenwirtschaftstheorie
dc.subject Internationale Arbeitsteilung
dc.subject Schätzung
dc.subject Theorie
dc.subject Welt
dc.title The Solow model in the empirics of growth and trade
dc.type doc-type:workingPaper


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