Publication Type

Working Paper

Version

publishedVersion

Publication Date

4-2016

Abstract

Investment-specific technical change (ISTC) contributes little to growth in most countries. This is because in many countries the investment process does not become notably more efficient over time. Still, cross-country differences in the contribution of ISTC to growth are significant. Differences in the rate of ISTC appear due to cross-country variation in the use of R&D intensive capital goods, as well as trade costs.

Keywords

Price of capital, investment-specific technical change, growth accounting, sources of growth, natural resources, trade costs.

Discipline

Growth and Development | Macroeconomics

Research Areas

Macroeconomics

First Page

1

Last Page

68

Publisher

SMU Economics and Statistics Working Paper Series, No. 07-2016

City or Country

Singapore

Embargo Period

6-9-2016

Copyright Owner and License

Authors

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