De Long, J. Bradford and Lawrence H. Summers, "How Strongly do developing economies benefit from equipment investment?" Journal of Monetary Economics, 32:3, pp. 395-415, December 1993.
Abstract of Paper
The authors extend and improve the database used in De Long and Summers (1991) and, focusing on developing economies, find that there is a very strong growth- equipment investment association even when rich industrialized economies are not considered. Rapid growth is found where equipment investment is high, and slow growth where equipment investment is low. If there is a region where the post-WWII growth-equipment nexus is weak, it is the well-integrated and very rich regions of western Europe - not the developing world.
The authors extend and improve the dataset used in DeLong and Summers (1991). The dataset provides information on equipment investment and economic growth. It covers 104 countries and includes the following variables:
- Ln(1960 Rel Y/L) Log (1960 output per worker relative to 1960 U.S. output per worker)
- Y/L Gr 60-85 Growth rate of GDP per worker for 1960-85
- NonEqInv Non-Equipment Investment
- EqInv Equipment Investment
- LGr60-85 Labor Force growth for 1960-85