NSU Research Contributions
Title : Disaggregated Spending and the Productivity Bias Hypothesis
Authors : Gour Goswami, A.K.M. Rahman
| Journal Title: The Journal of Developing Areas | Volume Number: 41 | Publication Year : 2008 | Issue Number: 2 |
| Index: scopus | Ranking: Q1 | ISSN: 0022037X | Publisher Name: Project-Muse |
| Pages : 79-98 | |||
| ISBN : 15482278 | |||
| Funding Source : None |
|
Direct Sustainable Development Goals : SDG9 Industry, Innovation & Infrastructure |
Indirect Sustainable Development Goals : SDG9 Industry, Innovation & Infrastructure |
Sustainable Development Sub Goals : Develop quality, sustainable infrastructure Promote inclusive and sustainable industrialization Support infrastructure in developing countries |
| Impact statement: According to the productivity bias hypothesis, countries tend to appreciate their domestic currency following a productivity shock, and this tendency is more pronounced in non-tradable sectors. Balassa (1964) examines this thesis for 12 OECD countries in a cross-sectional framework. This paper reexamines this empirically using disaggregate data of consumption, investment, and government expenditures in a panel regression set-up. Using five different panel specifications and controlling for country-specific and time-specific heterogeneity and openness, this paper finds that the bias is more pronounced in the government sector than in other components of aggregate spending. | Collaboration: None | Keywords: PPP, Productivity Bias Hypothesis |
