The recent literature on Purchasing Power Parity (PPP) has emphasized the role of two phenomena that may lead to the rejection of the PPP hypothesis: structural breaks and nonlinear adjustment induced by transaction costs. These two hypotheses are analyzed separately in the literature. We...

The paper analyses the impact of knowledge spillovers on output per worker at the industry level using a primal production function approach. The paper make three different contributions in the international spillovers literature: first identifies trade related spillovers under alternative...

The paper looks for non-linearities in the relationship between fiscal consolidation and capital intensity (capital per worker). To understand this nexus, we consider the broader state of the economy as it is represented by the degree of economic uncertainty. Based on a sample of 27 OECD...

Departing from the expansionary austerity literature, this study assesses empirically whether fiscal consolidation propagates changes in the supply side of the economy that can potentially influence total factor productivity (TFP). Using a panel dataset of 26 OECD countries over the period...

We developed a non-parametric technique to measure Total Factor Productivity (TFP). Our paper has two major novelties in estimating the production function. First, we propose a productivity modelling with both idiosyncratic firm factors and aggregate shocks within the same framework. Second, we...

We contribute to the literature of economic performance and institutions by analysing how the interplay between historical legal roots and ethnic heterogeneity can determine current economic outcomes estimating various specifications of the national production function. Our empirical...

We revisit the puzzle regarding the role of Multinational Enterprises (MNEs) on Total Factor Productivity (TFP) of domestic firms by drawing attention to foreign ownership structure. First, we differentiate between market share (MS) due to competition effects and knowledge agglomeration gains...

Given the decline in growth momentum in the manufacturing sector in many OECD countries, the role of knowledge-based capital has emerged as a key driver for sustained growth. While empirical studies on estimating knowledge spillovers have usually been undertaken at the country level, the...

This paper explores the relative effects of Multinational Enterprises’ (MNEs) subsidiaries to domestic firms (DOMS) on regional productivity growth in the UK. We combine regional and firm level data to explore the relative importance of three key characteristics of Multinational Enterprises’...

With a panel of 18 OECD countries, 1980-2005, we investigate the determinants of export performance, in particular the effects of the size of government and institutional features. In a model of endogenous extent of domestically-produced goods, government size has a non-linear effect on export...