Dear Researchers
I have regarding specification of the model. I am going to estimate the export and output growth nexus. However, i am checking the export effect through productivity channel and setting to put exports in the production equation as third input. But i am little confused how to set the model either take the variables in log or convert the variables into growth.Please suggest me the more suitable specification. i Will be thankful
Dear Ali
No,i will not estimate the impact of exports on TFP.
I want to estimate the effect of export on output growth and i assume that in cobb Douglas production function, A (productivity) is the function of various type of exports A=f(exprots). I am going t0 check the ELG at disaggregated level ( disaggregated by Sectors) and the reduce form equation is GDP = f(L, K, Exports) please guide me in this situation. either i take the log of variables or convert the variables into growth.
How if you see with this prespective (with simultaneous equations):
production more then export
production means domectic supply
production for consumption
consumption = demand
supply = demand
export - international price
export = import
then you can see the growth of export
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