Article contents
Role of Capital Productivity in Economic Growth
Abstract
The main aim of this study is to measure the value of the capital in labour productivity growth at Turkish manufacturing industry within the years of 1980-2011 by applying an econometric model that account for cross-section dependence and heterogeneity of production technology in a panel setting, which is not done before. That is the common correlated effects (CCE) type estimator of Pesaran is applied. The cross-sectional averages of the dependent and explanatory variables are used at the CCE estimator. The main findings of the study are; first, individual industry regression results convey apparent technology heterogeneity across the industries. Second, imposing slope homogeneity restriction in the pooled models lends a lot of precision to the capital productivity estimate. When tested, the industries are not poolable. But, interestingly, the mean-group and pooled estimates of technology coefficients are close. The technology estimates are sensitive to the presence of observed and unobserved common factors, justifying the use of CCE estimators.
Article information
Journal
International Journal of Social Sciences and Humanities Invention
Volume (Issue)
8 (08)
Pages
6098-6110
Published
Copyright
Copyright (c) 2020 The International Journal of Social Sciences and Humanities Invention
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