Estimation of a production function with domestic and foreign capital stock

Thomas Ziesemer

Estimation of a production function with domestic and foreign capital stock

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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. The preferred regression uses log levels estimated by GMM-HAC. Results are that the elasticity of production of foreign capital is about 40% of that of domestic capital, the function has constant returns to scale in capital and labour variables, and human capital and technical change are also highly productive.

Original language	English
Publisher	UNU-MERIT
Number of pages	8
Publication status	Published - 2022

Publication series

Series	UNU-MERIT Working Papers
Number	002
ISSN	1871-9872

JEL classifications

c22 - "Single Equation Models; Single Variables: Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models"
c51 - Model Construction and Estimation
e23 - Macroeconomics: Production
f43 - Economic Growth of Open Economies
o54 - "Economywide Country Studies: Latin America; Caribbean"

Keywords

time-series
estimation
Production function
open economy
Brazil

Access to Document

wp2022-002Final published version, 652 KBLicence: CC BY-NC

https://www.merit.unu.edu/publications/working-papers/abstract/?id=9169

Cite this

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