Equipment prices, human capital and economic growth

Ortigueira, Salvador

doi:10.1016/s0165-1889(02)00166-5

Cited by 4 publications

(4 citation statements)

References 19 publications

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“…Of course, these same results suggest that investment and exports are not the only determinants of output and productivity in the long-run, but also human capital is a significant factor in determining the steady state of these variables, when equipment investment is considered. This finding is in agreement with, Greenwood et al (1997), Temple and Voth (1998), Hendricks (2000) and Ortiguera (2003). Thus, output and labor productivity not only depend on equipment investment, but also on the technology absorption or on the adaptation through the worker's skill, and both factors are significant in the rapid Chinese development.…”

Section: [Insert Table 1]supporting

confidence: 90%

Equipment investment, output and productivity in China

Herrerías

Orts

2010

Empir Econ

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The objective of this paper is threefold. Firstly, we provide evidence of the role played by equipment investment as determinant of output and labor productivity in China for the period 1962-2004. Secondly, we assess its robustness in allowing for other relevant sources of economic growth, and finally, we analyze the role played by these different factors on long-run growth. For this purpose we focused our analysis on two factors that have apparently played a relevant role in accounting for China's growth, namely, equipment investment and exports. However, knowing the close relationships that exist between equipment investments with other variables, we have included R&D expenditure, human capital and infrastructures in our analysis. We start up our study exploring the link among equipment investment, R&D expenditure, exports and the real exchange rate as main determinants of labor productivity and output in the short and long-run, that is, our base model. Afterwards, we included human capital and infrastructures in our augmented model. Given the potential interdependence and endogeneity of the variables considered, we employed as statistical framework for analysis the cointegrated VAR model. Our results provide evidence that equipment investment and exports are one of the most important determinants of both labor productivity and output in the long-run even controlling with other sources of growth in China. Furthermore, when human capital and infrastructures are included, we found that positively affect to economic activity in the long-run. Finally, our findings provide robust evidence that R&D expenditure enhances equipment investment on the long-run growth.

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confidence: 90%

Equipment investment, output and productivity in China

Herrerías

Orts

2010

Empir Econ

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“…An increase in the tax rates reduces the after-tax rates of the return on physical capital, which in turn discourages investment and leads to slower economic growth on the balanced growth path. These results are the same as those of growth studies (e.g., Jensen et al 1996, Turnovsky 1999, Ortigueira 2003. Figure 5a.…”

Section: F Wangsupporting

confidence: 85%

The effects of foreign borrowing policies on economic growth: success or failure?

Wang

2009

Journal of Economic Policy Reform

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Foreign savings closely interact with economic performance. External loans are partly influenced by the government's attempt to balance its budget. This study investigates the relationship between public sector foreign borrowing and economic growth. Results indicate that only under circumstances of (1) moderate income tax rates to guarantee the solvency of external loans and (2) households having the patience to substitute consumption between different periods can domestic government finance fiscal deficits by borrowing abroad, and thereby enhance investment and economic growth. Otherwise, additional foreign borrowing is associated with higher indebtedness and slower economic growth.impatience, foreign borrowing, economic growth,

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“…Mino stated that additional factors, including distortional taxes on factor income and endogenizing capital utilization, have a chance of increasing the value of θ . In addition, an effective method of prioritizing multiple equilibria under larger values of θ , as seen in Ortigueira () and Fernández et al. (), would be to consider elastic labor supply, equipment investment, and human capital accumulation; however, this would further complicate the model…”

Section: Numerical Analysismentioning

confidence: 99%

“… As Ortigueira () noted, the new aspect of the paper is that physical capital is disaggregated into structures and equipment capital. …”

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confidence: 99%