erc/metu
INTERNATIONAL CONFERENCE IN ECONOMICS  IV
September 13-16, 2000, Ankara

Another Contribution to the Empirics of Economic Growth

Ben S. Bernanke (Princeton University and NBER, USA)
Refet Gürkaynak (Princeton University, USA)

Abstract

This paper calculates total factor productivity growth rates for a cross-section of countries. We calculate the Solow residual assuming a Cobb-Douglas production function, and use national accounts data to find labor's share. We employ a variety of methods to correct for the income of the self-employed in calculating the labor share. We then use these shares for growth accounting. We find that the TFP growth rates calculated in this fashion are correlated with savings and population growth rates, contrary to the assumptions of neoclassical growth models.We also find that differences in human capital growth, as proxied by educational attainment do not explain the differences in TFP growth rates.

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