Arbeitspapier

Construction productivity and global inequality

Two well established stylized facts of economic development are a strong correlation between investment and income, and large differences in investment rates across countries. Construction is the largest component of investment. This paper examines the implications of heterogeneity in construction productivity on cross-country income disparity. We estimate the 10:1 spread in construction productivity among 145 countries in 2005 as a factor of 61.7-fold. Based on a general equilibrium model with input-output linkages, we find that the 10:1 spread in income per capita declines by 45 per cent when the construction productivity gap is eliminated. Sectoral characterization of the aggregate effect of a change in construction productivity shows heterogeneous sectoral contributions to income convergence. Electrical equipment, metals, and transport equipment play stronger roles in transforming the effect of a change in construction productivity to the aggregate level in China compared with other countries.

Sprache
Englisch
ISBN
978-92-9267-443-4

Erschienen in
Series: WIDER Working Paper ; No. 2023/135

Klassifikation
Wirtschaft
Macroeconomic Analyses of Economic Development
Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
Construction
Thema
productivity
construction
input–
output linkages
income inequality

Ereignis
Geistige Schöpfung
(wer)
Paul, Saumik
Sen, Kunal
Ereignis
Veröffentlichung
(wer)
The United Nations University World Institute for Development Economics Research (UNU-WIDER)
(wo)
Helsinki
(wann)
2023

DOI
doi:10.35188/UNU-WIDER/2023/443-4
Handle
Letzte Aktualisierung
20.09.2024, 08:23 MESZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Paul, Saumik
  • Sen, Kunal
  • The United Nations University World Institute for Development Economics Research (UNU-WIDER)

Entstanden

  • 2023

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