Testing the Stability of a Production Function with Urbanization as a Shift Factor: An Application of Non-Stationary Panel Data Techniques

Author(s)/Creator(s)

Suzanne McCoskey, Syracuse University
Chihwa Kao, Syracuse University, Maxwell School, Center for Policy Research.Follow

Description/Abstract

Urban economists have long sought to explain the relationship between urbanization levels and output. In this paper we revisit this question and test the long-run stability of a production function with urbanization using non-stationary panel data techniques. Our results show that a long-run relationship between urbanization output per worker and capital per worker cannot be rejected for either our sample of 30 developing countries or our sample of 22 developed countries. In addition, we estimate the long-run average effects on GDPW of urbanization and capital. These results offer newer insights and potential for dynamic urban models than the simple cross-section approach.

Document Type

Working Paper

Date

1999

Keywords

Time-series models, panel data, production function, urbanization, urban economics

Language

English

Series

Working Papers Series

Disciplines

Economics

Additional Information

Harvest from RePEc at http://repec.org

Recommended Citation

McCoskey, Suzanne and Kao, Chihwa, "Testing the Stability of a Production Function with Urbanization as a Shift Factor: An Application of Non-Stationary Panel Data Techniques" (1999). Center for Policy Research. 142.
https://surface.syr.edu/cpr/142

Source

Metadata from RePEc

Creative Commons License

This work is licensed under a Creative Commons Attribution 3.0 License.