Examining the Efficiency, Labor and Investment Wedges in Africa

Year 2020, Volume: 7 Issue: 2, 479 - 498, 01.07.2020

Sevgi Coskun , Oyakhilome Ibhagui

https://doi.org/10.17541/optimum.702693

Abstract

Cross-country differences in per capita income are known to be high among Sub-Saharan Africa’s economies (Nigeria, South Africa and Angola), and North Africa’s economies (Egypt, Algeria and Morocco). The aim of this paper is hence to examine the phenomenon of income discrepancies in Africa for periods 1990-2013 and then apply the combined methodologies of Development Accounting (Caselli (2005) and Konya (2013)) as well as Business Cycle Accounting (Chari, Kehoe and McGrattan (2007)) in a standard neoclassical, small open economy model. Our main finding is that although efficiency wedge plays an important role in explaining income differences in Africa, labor wedge and investment wedge are also important for understanding income differences in these economies.

Keywords

Business Cycle Accounting, Development Accounting, Labor Wedge, Efficiency Wedge, Investment Wedge

Afrika’da Verimlilik, İşgücü ve Yatırım Kamalarının İncelenmesi

Abstract

Kişi başına gelirdeki ülkelerarası farklılıklar Sahra altı Afrika ekonomileri (Nijerya, Güney Afrika ve Angola) ve Kuzey Afrika ekonomileri (Mısır, Cezayir ve Fas) arasında yüksek olduğu bilinmektedir. Bu makalenin amacı, Afrika’daki 1990-2013 dönemi için gelir farklılıkları olgusunu incelemek ve sonrasında standart neoklasik, küçük açık ekonomi modeline İş Döngüsü Muhasebesi’nin (Chari, Kehoe and McGrattan (2007)) yanı sıra Kalkınma Muhasebesi’nin (Caselli (2005) ve Konya (2013)) birleşik metodolojilerine başvurmaktır. Ulaşılan temel sonuç, verimlilik kaması Afrika’daki gelir farklılıklarını açıklamada önemli bir rol oynamasına rağmen işgücü ve yatırım kamalarının da bu ekonomilerdeki gelir farklılıklarını anlamada önemli olduğu gözükmektedir.

Keywords

İş Çevrimi Muhasebesi, Kalkınma Muhasebesi, Işgücü Kaması, Verimlilik Kaması, Yatırım Kaması

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