EconPapers    
Economics at your fingertips  
 

Productivity, investment, and current accounts: reassessing the evidence

Jaime R. Marquez

No 742, International Finance Discussion Papers from Board of Governors of the Federal Reserve System (U.S.)

Abstract: The most widely accepted explanation for the inverse association between private investments and current accounts [Glick and Rogoff, 1995] rests on data for manufactures through 1990. Is this consensus robust to revisions to the national accounts and the expansion of information technologies since 1990? To address this question I replicate their results and I find that post 1990 developments eliminate the support for such a conclusion. I also implement alternative formulations and find, again, a lack of empirical support for their findings. Thus I examine the role of measurement errors and focus on the treatment of the manufacturing sector as representative of the whole economy and the exclusion of the contribution of capital when measuring productivity. Correcting these two measurement errors restores to Glick and Rogoff's conclusion its original strength.

Keywords: Productivity; International finance; Investments (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev
Date: 2002
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.federalreserve.gov/pubs/ifdp/2002/742/default.htm (text/html)
http://www.federalreserve.gov/pubs/ifdp/2002/742/ifdp742.pdf (application/pdf)

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:fip:fedgif:742

Ordering information: This working paper can be ordered from
http://www.federalreserve.gov/pubs/ifdp/order.htm

Access Statistics for this paper

More papers in International Finance Discussion Papers from Board of Governors of the Federal Reserve System (U.S.) Contact information at EDIRC.
Bibliographic data for series maintained by Ryan Wolfslayer ().

 
Page updated 2019-12-10
Handle: RePEc:fip:fedgif:742