Fri, 12th Nov 2010 (15:15hrs)
Host: Kaddour Hadri
Location: Meredith Room
Speaker: Kul Luintel, Cardiff University
We model domestic productivity for a sample of 16 OECD countries focusing on the issues of omitted variables, cross-country heterogeneity and endogeneity. We estimate a dynamic heterogeneous panel model, which nests the fixed effects models as special cases. Sources of knowledge and human capital do not appear robust vis-à-vis the omitted variables unless cross-country heterogeneity is accounted for. Only when the cross-country heterogeneity is modelled explicitly, knowledge stocks and human capital appear as universal drivers of productivity. The productivity relationship is significantly heterogeneous across the OECD countries signifying important role of country-specific factors in policy design.
JEL Classification: O3; O4; C15;F2;F12
* The views expressed are solely of authors and do not implicate any institutions. The usual disclaimer applies.
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