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An International perspective on the productivity paradox – by Alain ...

An International perspective on the productivity paradox – by Alain ...

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Most of the per capita income gap is found in the countryfixed effectsContribution to deviation of GDP per capita against 20 OECD country average(2000-2007)50%40%30%20%10%0%-10%-20%Country fixed effectsHuman capitalPhysical capitalActual GDP per capitaPredicted GDP capita-30%-40%-50%-60%NOR USA IRL CHE NLD CAN AUT DNK BEL DEU GBR SWE AUS FRA FIN JPN ITA ESP NZL PRT8

percentage point1980198119821983198419851986198719881989199019911992199319941995199619971998199920002001200220032004200520062007Investment rates in physical capital have been comparableto those in other countries though lower than in Australia15Non-residential business investments as share of GDPNZL minus other countries1050-5AUSCANSWEUSADNK-10-159

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