IDEAS home Printed from https://ideas.repec.org/a/bla/reviec/v10y2002i1p166-176.html
   My bibliography  Save this article

Capital–Labor Ratios and Total Factor Productivity in the Balassa–Samuelson Model

Author

Listed:
  • Vikas Kakkar

Abstract

The paper investigates the relationship between sectoral capital–labor ratios and total factor productivity (TFP) in the context of the Balassa–Samuelson model. It is shown that, under certain assumptions, the model implies that both traded‐ and nontraded‐goods sectors’ capital–labor ratios should be cointegrated with the traded‐goods sector’s TFP. Evidence from an intersectoral database for 14 OECD countries broadly supports this implication of the model. In addition to shedding light on the evolution of sectoral capital–labor ratios, the results also alleviate concerns regarding the reliability of capital stock data.

Suggested Citation

  • Vikas Kakkar, 2002. "Capital–Labor Ratios and Total Factor Productivity in the Balassa–Samuelson Model," Review of International Economics, Wiley Blackwell, vol. 10(1), pages 166-176, February.
    • Handle: RePEc:bla:reviec:v:10:y:2002:i:1:p:166-176
    DOI: 10.1111/1467-9396.00325
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1467-9396.00325
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1467-9396.00325?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Črt Lenarčič, 2019. "Unit Labour Cost and Unit Capital Cost Indicators in Slovenia and the Other Euro Area Countries," Journal of Innovative Business and Management, DOBA Faculty, vol. 11(2).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:reviec:v:10:y:2002:i:1:p:166-176. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0965-7576 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.