A Formalisation and Test of the Factor Productivity Explanation of International Differences in Service Prices

Rodney Falvey and Norman Gemmell

International Economic Review, 1996, vol. 37, issue 1, 85-102

Abstract: This paper extends and integrates previous models of the determinants of international differences in the prices of services relative to tradable commodities. The authors provide a model capable of identifying the effects of differences in (total) factor productivity on service price differences separately from the effects of factor endowment differences. They propose a method for measuring these factor productivity difference effects and apply this to a sample of sixty countries in 1980. The authors' results provide support both for the 'endowment difference' and 'productivity difference' explanations suggesting that, in this context at least, the two hypotheses are complements rather than competitors. Copyright 1996 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

Date: 1996
References: Add references at CitEc
Citations: View citations in EconPapers (7)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ier:iecrev:v:37:y:1996:i:1:p:85-102

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0020-6598

Access Statistics for this article

International Economic Review is currently edited by Harold L. Cole

More articles in International Economic Review from Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association 160 McNeil Building, 3718 Locust Walk, Philadelphia, PA 19104-6297. Contact information at EDIRC.
Bibliographic data for series maintained by Wiley-Blackwell Digital Licensing () and ().