Development accounting with intermediate goods

Research output: Contribution to journalArticlepeer-review

Abstract

I use a simple development accounting framework that distinguishes between goods and service industries on the one hand, and final and intermediate output on the other hand, to document the following facts. First, poorer countries are particularly inefficient in the production of intermediate relative to final output. Second, they are not necessarily inefficient in goods relative to service industries. Third, they present low measured labor productivity in goods industries because these are intensive intermediate users, and because their intermediate TFP is relatively low. Fourth, the elasticity of aggregate GDP with respect to sector-neutral TFP is large.
Original languageEnglish
Article number20160223
Pages (from-to)1-27
JournalB.E. Journal of Macroeconomics
Volume18
Issue number1
Early online date25 Aug 2017
DOIs
Publication statusPublished - 26 Jan 2018

Keywords

  • development accounting
  • productivity
  • intermediate goods
  • TFP

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