Why are some countries more productive? A study of the impact of capital market misallocation on productivity in both developed and developing countries

Why do some countries produce so much more than others? One popular explanation is that capital market distortions lower the aggregate productivity of a country by allocating resources ine ciently. This paper follows the generalized average revenue product (ARP) approach, which incorporates hetero...

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Main Authors: Yuan, Zihan, Wei, Ran, Peng, Shiqi
Other Authors: Xu Qiang
Format: Final Year Project
Language:English
Published: 2014
Subjects:
Online Access:http://hdl.handle.net/10356/61984
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Institution: Nanyang Technological University
Language: English
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spelling sg-ntu-dr.10356-619842019-12-10T12:08:39Z Why are some countries more productive? A study of the impact of capital market misallocation on productivity in both developed and developing countries Yuan, Zihan Wei, Ran Peng, Shiqi Xu Qiang School of Humanities and Social Sciences Wu Guiying Laura DRNTU::Social sciences::Economic theory::Macroeconomics Why do some countries produce so much more than others? One popular explanation is that capital market distortions lower the aggregate productivity of a country by allocating resources ine ciently. This paper follows the generalized average revenue product (ARP) approach, which incorporates heterogeneities in output and demand elasticity into the existing ARP model. Applying the method to rm-level datasets from 31 countries, together with Penn World Table that includes information about country level aggregate total factor productivity (TFP), we nd that there is indeed a signi cant negative relationship between aggregate TFP and measure of capital misallocation across countries. Bachelor of Arts 2014-12-15T01:31:40Z 2014-12-15T01:31:40Z 2014 2014 Final Year Project (FYP) http://hdl.handle.net/10356/61984 en Nanyang Technological University 52 p. application/pdf application/octet-stream
institution Nanyang Technological University
building NTU Library
country Singapore
collection DR-NTU
language English
topic DRNTU::Social sciences::Economic theory::Macroeconomics
spellingShingle DRNTU::Social sciences::Economic theory::Macroeconomics
Yuan, Zihan
Wei, Ran
Peng, Shiqi
Why are some countries more productive? A study of the impact of capital market misallocation on productivity in both developed and developing countries
description Why do some countries produce so much more than others? One popular explanation is that capital market distortions lower the aggregate productivity of a country by allocating resources ine ciently. This paper follows the generalized average revenue product (ARP) approach, which incorporates heterogeneities in output and demand elasticity into the existing ARP model. Applying the method to rm-level datasets from 31 countries, together with Penn World Table that includes information about country level aggregate total factor productivity (TFP), we nd that there is indeed a signi cant negative relationship between aggregate TFP and measure of capital misallocation across countries.
author2 Xu Qiang
author_facet Xu Qiang
Yuan, Zihan
Wei, Ran
Peng, Shiqi
format Final Year Project
author Yuan, Zihan
Wei, Ran
Peng, Shiqi
author_sort Yuan, Zihan
title Why are some countries more productive? A study of the impact of capital market misallocation on productivity in both developed and developing countries
title_short Why are some countries more productive? A study of the impact of capital market misallocation on productivity in both developed and developing countries
title_full Why are some countries more productive? A study of the impact of capital market misallocation on productivity in both developed and developing countries
title_fullStr Why are some countries more productive? A study of the impact of capital market misallocation on productivity in both developed and developing countries
title_full_unstemmed Why are some countries more productive? A study of the impact of capital market misallocation on productivity in both developed and developing countries
title_sort why are some countries more productive? a study of the impact of capital market misallocation on productivity in both developed and developing countries
publishDate 2014
url http://hdl.handle.net/10356/61984
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