Open AccessApplying Solow Model To Measure The Appropriate Capital Stock And The Contribution Of Productivity To The Economic Growth In Lebanon, Jordan, Egypt, And Syria
Author(s) -
Rim El Khoury
Publication year - 2011
Publication title -
journal of business and economics research
Language(s) - English
Resource type - Journals
eISSN - 2157-8893
pISSN - 1542-4448
DOI - 10.19030/jber.v4i11.2709
Subject(s) - economics , stock (firearms) , productivity , growth accounting , capital (architecture) , total factor productivity , macroeconomics , geography , archaeology
The productivity contribution to economic growth has never been measured in Lebanon, Jordan, Egypt, or Syria. This paper measures the contribution of productivity improvement to economic growth in each of the mentioned countries in addition to estimating the gap between the available capital stock and the appropriate one in a steady state world. The highest contribution is limited to 1.5% in Jordan compared with 0.4% (the lowest) in Syria and the average gap between available and appropriate capital stock exceeds 42% of GDP.