The Solow model in the empirics of growth and trade

Arbeitspapier

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.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Kiel Working Paper ; No. 1294

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Economic Growth and Aggregate Productivity: General ; Neoclassical Models of Trade
• Thema: Lerner diagram ; Solow Model ; Solow-Modell ; Wachstumstheorie ; Steady-State-Wachstum ; Kapitalintensität ; Außenwirtschaftstheorie ; Internationale Arbeitsteilung ; Schätzung ; Theorie ; Welt

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Gundlach, Erich
• Ereignis: Veröffentlichung
• (wer): Kiel Institute for the World Economy (IfW)
• (wo): Kiel
• (wann): 2006

Weitere Informationen

• Handle: http://hdl.handle.net/10419/3878
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ