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Physical Capital Stock: Sources, Methodology and Results Dataset

Web Address:Macroeconomics and Growth
Topics:Macroeconomic & Economic Growth
Citation: 

Nehru, Vikram, and Ashok Dhareshwar. 1993. "A New Database on Physical Capital Stock: Sources, Methodology and Results." Revista de Analisis Economica, 8(1), pp. 37-59, June 1993

Abstract of Paper:
This paper describes the derivation of a new database of physical capital stock estimates for a selected group of 92 developing and industrial countries from 1960 to 1990 (of which 68 are from developing countries). This work is part of a larger research effort to analyze the sources of growth in developing countries and assess the effects of changes in the international economic environment on developing countries prospects. A special effort was made to compile investment series from 1950 onward for as many countries as possible and these were then aggregated according to a perpetual inventory method. In addition, various techniques were evaluated for the estimation of an initial capital stock and a modified Harberger approach was considered most suitable. The derived capital stock series prepared for this paper were compared to other capital stock series prepared by other researchers. The tests show the series correlated well with the results of most other similar exercises. The capital stock estimates were used to calculate median-capital output ratios and aggregate growth rates of the capital stock by country group; again, the results seem reasonable and consistent with our prior understanding of the relevant developing regions. Finally, the capital stock series were used to calculate total factor productivity growth rates using a constant returns to scale Cobb-Douglas production function with imposed factor shares. The results of this exercise were presented both on a regional basis as well as against per capita income in 1960 and were found to be consistent with the findings of other researchers.

Database:
The database of physical capital stock estimates for a selected group of 92 developing and industrial countries from 1960 to 1990 (of which 68 are from developing countries). This work is part of a larger research effort to analyze the sources of growth in developing countries and assess the effects of changes in the international economic environment on developing countries prospects. A special effort was made to compile investment series from 1950 onward for as many countries as possible and these were then aggregated according to a perpetual inventory method. In addition, various techniques were evaluated for the estimation of an initial capital stock and a modified Harberger approach was considered most suitable. The derived capital stock series prepared for this paper were compared to other capital stock series prepared by other researchers. The tests show the series correlated well with the results of most other similar exercises. The capital stock estimates were used to calculate median-capital output ratios and aggregate growth rates of the capital stock by country group; again, the results seem reasonable and consistent with our prior understanding of the relevant developing regions. Finally, the capital stock series were used to calculate total factor productivity growth rates using a constant returns to scale Cobb-Douglas production function with imposed factor shares. The results of this exercise were presented both on a regional basis as well as against per capita income in 1960 and were found to be consistent with the findings of other researchers.

The file contains the following eleven variables:

  • Total physical capital
  • GDP at market prices
  • Human capital stock: mean years of primary education
  • Human capital stock: mean years of secondary education
  • Human capital stock: mean years of tertiary education
  • Human capital stock: total mean years education
  • Gross dom. fixed investment
  • GDFI in producers durables (share of total GDFI)
  • Potential GDP series
  • Total mid-year population
  • Population between ages 15 and 64

Publication date: January 16, 1995

Access to Dataset
  • Dataset (zipped file, 344kb)





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