NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Capital Goods Imports and Long-Run Growth

Jong-Wha Lee

NBER Working Paper No. 4725
Issued in April 1994
NBER Program(s):   EFG   ITI

This paper presents an endogenous growth model of an open economy in which the growth rate of income is higher if foreign capital goods are used relatively more than domestic capital goods for the production of capital stock. Empirical results, using cross country data for the period 1960-85, confirm that the ratio of imported to domestically produced capital goods in the composition of investment has a significant positive effect on per capita income growth rates across countries, in particular, in developing countries. Hence, the composition of investment in addition to the volume of total capital accumulation is highlighted as an important determinant of economic growth.

download in pdf format
   (386 K)

email paper

This paper is available as PDF (386 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Published: Journal of Development Economics, Vol. 48, no. 1 (1995): 91-110.

Users who downloaded this paper also downloaded these:
Lawrence and Weinstein w7264 Trade and Growth: Import-Led or Export-Led? Evidence From Japan and Korea
Rodriguez and Rodrik Trade Policy and Economic Growth: A Skeptic's Guide to the Cross-National Evidence
Baldwin w4045 On the Growth Effects of Import Competition
Eaton and Kortum w8070 Trade in Capital Goods
Baldwin Openness and Growth: What’s the Empirical Relationship?
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us