International productivity and factor price comparisons

Kathryn G. Marshall

Journal of International Economics, 2012, vol. 87, issue 2, 386-390

Abstract: Using OECD input–output tables for a diverse group of 33 countries in the year 2000 and estimates of each country's factor stocks, I compute factor payments for aggregate labor and capital with value-added data adjusted for self-employment by sector. Using a detailed technology matrix for the U.S., I compute factor-specific productivity measures in each country relative to the U.S., and show that these measures are strongly correlated with the pattern of wages and rental rates. I find that many low income countries with low labor productivity have relatively high capital productivity. I also find a distinctive pattern between factor productivity and factor payments depending on whether a country has a high or low wage-rental ratio compared to the U.S. I show these findings are consistent with the existence of sector-based differences in production technology and complementarities between factors.

Keywords: Factor-specific productivity; TFP differences; Factor payments (search for similar items in EconPapers)
JEL-codes: F16 J24 J31 O15 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:inecon:v:87:y:2012:i:2:p:386-390

DOI: 10.1016/j.jinteco.2012.01.003

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