Abstract: We look at disaggregated imports of various types of equipment to make inferences on cross-country differences in the composition of equipment investment. We make three contributions. First, we document large differences in investment composition. Second, we explain these differences as being based on each equipment type's intrinsic efficiency, as well as on its degree of complementarity with other factors whose abundance differs across countries. Third, we examine the implications of investment composition for development accounting, i.e., explaining the cross-country variation in income per capita.
Status: Published in Technological change : a workshop (2002: November 14-15) ; Journal of Monetary Economics v. 51, no. 1 (January 2004) pp. 1-32
File(s): File format is application/pdf http://www.frbsf.org/economics/conferences/0211/caselli-wilsonfull.pdf
Provider: Federal Reserve Bank of San Francisco
Part of Series: Proceedings
Publication Date: 2002