Capital and Trade as Engines of Growth in France: An Application of Johansen's Cointegration Methodology

36 Pages Posted: 15 Feb 2006

See all articles by David T. Coe

David T. Coe

International Monetary Fund (IMF); National Bureau of Economic Research (NBER)

Reza Moghadam

affiliation not provided to SSRN

Date Written: February 1993

Abstract

An aggregate production function is estimated with recent cointegrating techniques that are particularly appropriate for estimating long-run relationships. The empirical results suggest that the growth of output in France has been spurred by increased trade integration within the European Community and by the accumulation not only of business sector capital--the only measure of capital included in most empirical studies--but also by the accumulation of government infrastructure capital, residential capital, and R&D capital. Calculations of potential output indicate that trade and capital--broadly defined--account for all of the growth in the French economy during the last two decades.

JEL Classification: E23, F15, O32, O52

Suggested Citation

Coe, David T. and Moghadam, Reza, Capital and Trade as Engines of Growth in France: An Application of Johansen's Cointegration Methodology (February 1993). IMF Working Paper No. 93/11, Available at SSRN: https://ssrn.com/abstract=883430

David T. Coe (Contact Author)

International Monetary Fund (IMF) ( email )

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Washington, DC 20431
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Reza Moghadam

affiliation not provided to SSRN

No Address Available

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