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A Versus K Revisited:Evidence From Selected Mena Countries

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  • Suleiman Abu-Bader

    (BGU)

  • Aamer S. Abu-Qarn

    (BGU)

Abstract

This paper reconsiders the A versus K debate, namely, which factor is the leading contributor to economic growth productivity gains (A) or factor accumulation (K). The growth accounting analysis is conducted for ten MENA countries over the period 1960-1998. The longrun share of capital in national income is estimated using cointegration (country-specific) and panel data (region-specific) methods. As has been shown for many developing economies, we find that for most of the countries the share is much higher than the conventional share of 0.3- 0.4. The growth accounting exercise conducted with the incorporation of human capital reveals that for the MENA region the contribution of productivity gains to economic growth is negligible and frequently even detrimental. Thus, we conclude that it is factor (both physical and human) accumulation that drives the economic performance of MENA economies.

Suggested Citation

  • Suleiman Abu-Bader & Aamer S. Abu-Qarn, 2005. "A Versus K Revisited:Evidence From Selected Mena Countries," Working Papers 0513, Ben-Gurion University of the Negev, Department of Economics.
    • Handle: RePEc:bgu:wpaper:0513
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    2. Schalk, Hans Joachim, 2011. "Analysing growth and productivity in Syria by growth accounting," CAWM Discussion Papers 50, University of Münster, Münster Center for Economic Policy (MEP).

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    More about this item

    Keywords

    Growth Accounting; Productivity and Factor Accumulation; MENA; Middle-East; Cointegration; Panel Data;
    All these keywords.

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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