HETEROGENEOUS CAPITAL, ECONOMIC-GROWTH, AND ECONOMIC-DEVELOPMENT

This paper asks how much does physical capital contribute to economic growth. It postulates that capital is heterogeneous because of embodie d progress, and it structures the inquiry to account for differences i n economic development. Embedded in data that cover 120 nations over 4 1 years are 35 derived capital stock series, whose characteristics inc lude average ages stratified by development state. Growth accountancy proceeds by regression analysis cast in a production function contest and repeated for each capital type. Those results help to establish th e growth contributions of labor quantity and quality and. capital quan tity and quality. They also bear on neoclassical convergence.