Input Substitutability and Cross-Country Variation in Sectoral Linkages

Input Substitutability and Cross-Country Variation in Sectoral Linkages

Using panel data on input-output intensities and expenditure prices from 28 countries, this paper finds the elasticity of substitution across sectoral inputs to be less than one in each of the three broad sectors of the economy. Intermediates are m...

Full description

Bibliographic Details
Main Author: Sinha, Rishabh
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2019
Subjects:
SECTORAL LINKAGES
INPUT SUBSTITUTION
MARKET DISTORTIONS
ELASTICITY OF SUBSTITUTION
Online Access:http://documents.worldbank.org/curated/en/374631552312398249/Input-Substitutability-and-Cross-Country-Variation-in-Sectoral-Linkages
http://hdl.handle.net/10986/31396
id okr-10986-31396
recordtype oai_dc
spelling okr-10986-313962022-01-20T12:20:29Z Input Substitutability and Cross-Country Variation in Sectoral Linkages Sinha, Rishabh SECTORAL LINKAGES INPUT SUBSTITUTION MARKET DISTORTIONS ELASTICITY OF SUBSTITUTION Using panel data on input-output intensities and expenditure prices from 28 countries, this paper finds the elasticity of substitution across sectoral inputs to be less than one in each of the three broad sectors of the economy. Intermediates are most complementary in the production of services while it is easiest to substitute across intermediates in the production of agricultural goods. Differences in relative prices alone account for a non-trivial fraction of the cross-country variation in sectoral linkages. Abstracting from the price channel that allows for substitution across inputs in response to changes in relative prices delivers biased aggregate implications of changes in productivity and distortions. 2019-03-14T19:35:46Z 2019-03-14T19:35:46Z 2019-03 Working Paper http://documents.worldbank.org/curated/en/374631552312398249/Input-Substitutability-and-Cross-Country-Variation-in-Sectoral-Linkages http://hdl.handle.net/10986/31396 English Policy Research Working Paper;No. 8770 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic SECTORAL LINKAGES
INPUT SUBSTITUTION
MARKET DISTORTIONS
ELASTICITY OF SUBSTITUTION
spellingShingle SECTORAL LINKAGES
INPUT SUBSTITUTION
MARKET DISTORTIONS
ELASTICITY OF SUBSTITUTION
Sinha, Rishabh
Input Substitutability and Cross-Country Variation in Sectoral Linkages
relation Policy Research Working Paper;No. 8770
description Using panel data on input-output intensities and expenditure prices from 28 countries, this paper finds the elasticity of substitution across sectoral inputs to be less than one in each of the three broad sectors of the economy. Intermediates are most complementary in the production of services while it is easiest to substitute across intermediates in the production of agricultural goods. Differences in relative prices alone account for a non-trivial fraction of the cross-country variation in sectoral linkages. Abstracting from the price channel that allows for substitution across inputs in response to changes in relative prices delivers biased aggregate implications of changes in productivity and distortions.
format Working Paper
author Sinha, Rishabh
author_facet Sinha, Rishabh
author_sort Sinha, Rishabh
title Input Substitutability and Cross-Country Variation in Sectoral Linkages
title_short Input Substitutability and Cross-Country Variation in Sectoral Linkages
title_full Input Substitutability and Cross-Country Variation in Sectoral Linkages
title_fullStr Input Substitutability and Cross-Country Variation in Sectoral Linkages
title_full_unstemmed Input Substitutability and Cross-Country Variation in Sectoral Linkages
title_sort input substitutability and cross-country variation in sectoral linkages
publisher World Bank, Washington, DC
publishDate 2019
url http://documents.worldbank.org/curated/en/374631552312398249/Input-Substitutability-and-Cross-Country-Variation-in-Sectoral-Linkages
http://hdl.handle.net/10986/31396
_version_ 1764474234340376576

Similar Items