The quantitative role of capital-goods imports in U.S. growth
Abstract: Over the last 40 years, an increasing share of U.S. aggregate E&S investment expenditure has been allocated to capital-goods imports. While capital-goods imports were only 3.5 percent of E&S investment in 1967, by 2008 their share had risen tenfold to 36 percent. The goal of this paper is to measure the contribution of capital-goods imports to growth in U.S. output per hour using a simple growth accounting exercise. We find that capital-goods imports have contributed 20 to 30 percent to growth in U.S. output per hour between 1967 and 2008. More importantly, we find that capital-goods imports have been an increasing source of growth for the US economy: the average contribution of capital-goods imports to growth in U.S .output per hour has increased noticeably since 1967.
File(s): File format is application/pdf http://www.dallasfed.org/assets/documents/institute/wpapers/2010/0047.pdf
Provider: Federal Reserve Bank of Dallas
Part of Series: Globalization Institute Working Papers
Publication Date: 2010
Pages: 12 pages
Note: Published as: Cavallo, Michele and Anthony Landry (2010), "The Quantitative Role of Capital-Goods Imports in U.S. Growth," American Economic Review 100 (2): 78-82.