Working Paper: NBER ID: w9928
Authors: Francesco Caselli; Daniel Wilson
Abstract: We look at disaggregated imports of various types of equipment to make inferences on cross-country differences in the composition of equipment investment. We make three contributions. First, we document strikingly large differences in investment composition. Second, we explain these differences as being based on each equipment type's degree of complementarity with other factors whose abundance differs across countries. Third, we show that the composition of capital has the potential to account for some of the large observed differences in TFP across countries.
Keywords: No keywords provided
JEL Codes: E22; E23; F1; O11
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| complementarity of equipment types (L15) | investment composition (G11) |
| investment composition (G11) | TFP differences (F16) |
| complementarity of equipment types (L15) | TFP differences (F16) |
| capital composition (E22) | TFP differences (F16) |