Abstract
We estimate a Cobb-Douglas production function distinguishing between a domestic and a foreign capital stock built from data of imported machinery and transport equipment for Brazil. Some autoregressive models (AR(I)MAX) in log levels are estimated by the nonlinear General Method of Moments. The elasticity of production of foreign capital is about 40% of that of domestic capital; the function has about constant returns to scale in capital and labour variables, and human capital and technical change are also highly productive. Estimations based on preferred ARDL models and FMOLS yield higher elasticities of production for foreign capital goods. Having more observations in the future will allow better exploitation of the automatic lag length choice.
Original language | English |
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Pages (from-to) | 103-128 |
Number of pages | 26 |
Journal | Applied econometrics and International Development |
Volume | 24 |
Issue number | 2 |
Publication status | Published - 1 Jan 2024 |
Keywords
- Economic Growth of Open Economies
- Latin America, Caribbean
- Model Construction and Estimation
- Production
- Time-Series Models