Fadinger, Harald and Ghiglino, Christian and Teteryatnikova, Mariya (2022) Income Differences, Productivity and Input-Output Networks. American Economic Journal: Macroeconomics, 14 (2). pp. 367-415. DOI https://doi.org/10.1257/mac.20180342
Fadinger, Harald and Ghiglino, Christian and Teteryatnikova, Mariya (2022) Income Differences, Productivity and Input-Output Networks. American Economic Journal: Macroeconomics, 14 (2). pp. 367-415. DOI https://doi.org/10.1257/mac.20180342
Fadinger, Harald and Ghiglino, Christian and Teteryatnikova, Mariya (2022) Income Differences, Productivity and Input-Output Networks. American Economic Journal: Macroeconomics, 14 (2). pp. 367-415. DOI https://doi.org/10.1257/mac.20180342
Abstract
We study the importance of input-output (IO) linkages and sectoral productivity (TFP) in determining cross-country income differences. We find that while highly connected sectors are more productive than the typical sector in poor countries, the opposite is true in rich ones. To assess the quantitative role of linkages and sectoral TFP differences in cross-country income differences, we decompose cross-country income variation using a multi-sector general equilibrium model. We find that (i) IO linkages substantially amplify fundamental sectoral TFP variation but (ii) this amplification is significantly weaker than the one suggested by a simple IO model with an aggregate intermediate good.
Item Type: | Article |
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Uncontrolled Keywords: | input-output structure, productivity, cross-country income differences, development accounting |
Divisions: | Faculty of Social Sciences Faculty of Social Sciences > Economics, Department of |
SWORD Depositor: | Unnamed user with email elements@essex.ac.uk |
Depositing User: | Unnamed user with email elements@essex.ac.uk |
Date Deposited: | 30 Apr 2021 09:24 |
Last Modified: | 30 Oct 2024 19:32 |
URI: | http://repository.essex.ac.uk/id/eprint/30210 |
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