Working Paper #2022-002
Estimation of a production function with domestic and foreign capital stock
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.
- Keywords
-
- time-series
- estimation
- production function
- open economy
- Brazil
- JEL codes
-
- C22
- C51
- E23
- F43
- O54
Cite this as
APA 7th ed.Ziesemer, T. (2022). Estimation of a production function with domestic and foreign capital stock (UNU-MERIT Working Paper No. 2022-002). UNU-MERIT. https://unu-merit.nl/publications/working-papers/abstract/?id=9169