Israel’s Economic Growth: An International Comparison

10 Pages Posted: 7 Nov 2012

See all articles by Elhanan Helpman

Elhanan Helpman

Harvard University - Department of Economics; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR)

Date Written: April 1, 2003

Abstract

I examine the growth rate of GDP per capita in Israel, and compare it with the growth of many other countries. Although Israel’s growth rate was above average, its ranking changes when the comparison is conditioned on the initial level of development, as measured by GDP per capita. This is particularly the case when decade-long averages are used to compare growth rates, because it then transpires that Israel’s growth rate was relatively high only in the 1960s. Israel’s relative growth rate fell significantly in the 1970s and was extremely disappointing in the 1980s. An examination of the sources of the rise in total factor productivity (TFP) in the 1970s and 1980s shows that slightly more than half the rise in TFP can be attributed to R&D investment and the rest to a rise in the level of education.

Suggested Citation

Helpman, Elhanan, Israel’s Economic Growth: An International Comparison (April 1, 2003). Israel Economic Review, Vol. 1, No. 1 (2003). Available at SSRN: https://ssrn.com/abstract=2171736

Elhanan Helpman (Contact Author)

Harvard University - Department of Economics ( email )

Littauer Center
Cambridge, MA 02138
United States
617-495-4690 (Phone)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Centre for Economic Policy Research (CEPR)

London
United Kingdom

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