International Productivity Leakages: A Theoretical and Empirical Analysis of Pasinetti’s Notion
Facund Fora-Alcalde
What the paper says
As a consequence of international trade, the goods and services that can be used in a given country do not necessarily coincide with those that are produced within its borders. In these circumstances, improvements in the terms of trade can act, like technical progress, as a means to increase the amount of commodities available in an economy without further use of its resources. This was early emphasized by Pasinetti, who described the possibility of international leakages of productivity. Following his remarks, this paper develops a novel methodology with which to measure the quantity of goods that become available in an economy as a result of both its production and exchange processes. This method, together with a structural decomposition analysis, is used to calculate international productivity leakages, employing the OECD’s Inter-Country Input-Output tables and Trade in Employment data. The results indicate that these leakages can be relevant in hampering or fostering nations’ material prosperity.
1 citation
Evidence weight
Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40
| F · citation impact | 0.16 × 0.4 = 0.06 |
| M · momentum | 0.53 × 0.15 = 0.08 |
| V · venue signal | 0.50 × 0.05 = 0.03 |
| R · text relevance † | 0.50 × 0.4 = 0.20 |
† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.