Abu-Qarn, Aamer and Abu-Bader, Suleiman (2005): A Versus K Revisited: Evidence from Selected MENA Countries. Published in: World Development , Vol. 35, No. 5 (2007): pp. 752-771.
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This paper reconsiders the A versus K debate, namely, which factor is the leading contributor to economic growth? productivity gains (A) or factor accumulation (K). The growth accounting analysis is conducted for ten Middle Eastern and North African (MENA) countries over the period 1960-1998. The long-run share of capital in national income is estimated using cointegration (country-specific) and panel data (region-specific) methods. We find that for most of the countries in our sample the share of capital is much higher than the conventional share of 0.3-0.4. The growth accounting exercise conducted with the incorporation of human capital reveals that for the MENA region the contribution of productivity gains to economic growth is negligible and frequently even detrimental. Thus, we conclude that it is factor (both physical and human) accumulation that drives the economic performance of MENA economies.
|Item Type:||MPRA Paper|
|Institution:||Department of Economics, Ben-Gurion University of the Negev|
|Original Title:||A Versus K Revisited: Evidence from Selected MENA Countries|
|Keywords:||Growth Accounting; Productivity and Factor Accumulation; MENA; Middle-East; Cointegration; Panel Data|
|Subjects:||O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
C - Mathematical and Quantitative Methods > C2 - Single Equation Models; Single Variables > C23 - Models with Panel Data; Longitudinal Data; Spatial Time Series
O - Economic Development, Technological Change, and Growth > O5 - Economywide Country Studies > O53 - Asia including Middle East
C - Mathematical and Quantitative Methods > C2 - Single Equation Models; Single Variables > C22 - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models
|Depositing User:||Aamer Abu-Qarn|
|Date Deposited:||23. Apr 2010 10:50|
|Last Modified:||17. Feb 2013 17:05|
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A Versus K Revisited: Evidence from Selected MENA Countries. (deposited 13. Dec 2006)
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