ADVANCED

MACROECONOMICS Ⅱ
•Reviewedgroup assignment
•Group members:- 1. Tagesse Elitore

2. Daniel Kekamo
of the journal review:-why do
•Title

some countries produce so much more

output per worker than others?
 1. Introduction

 This journal review is done on the

published journal named as oxford journal
of why do some countries produce so much
more output per worker than others? From
the source of the quarterly journal of
economics volume 114 no.1 Feb 1999 from
page 83-116.The title of the journal is “why
do some countries produce so much more
output per worker than others?”
 … (cont‘)
 that is done or under taken by (Author(s)):
Robert E. Hall and Charles I. Jones in Feb-
1999. For this purpose the paper
utilized/used secondary data by referring
different books, journals, article reviews
that have relation with the title to be
studied. As a group we have reviewed the
journal’s objective, significance of the
study, methodology, finding of the study
and finally we have made a critical
appraisal of the journal article from both
weakness and strength side of the study.
 … (cont‘)
 The hypothesis is that differences in capital
accumulation, productivity, and therefore
output per worker are fundamentally
related to differences in social infrastructure
across countries
 By social infrastructure we mean the
institutions and government policies that
determine the economic environment
within which individuals accumulate skills
and firms accumulate capital and produce
output.
 2. Objectives of the study
 To study the application of why do some
countries produce so much more output
per worker than others? Concepts.
 To observe a social infrastructure favorable
to high levels of output per worker
provides an environment that supports
productive activities and encourages
capital accumulation.
 To analyze the need/importance of that
differences in physical capital and
educational attainment.
 To express economic arguments.
 3. Significance of the study
1) The significance of the study is to provide a
comprehensive exposition of basic economic
instruments/tools that are commonly used
in all fields of economics: microeconomics,
macroeconomics, the institutions and
government policies are important
determinants of growth performance.
2) The study will help one can increase their
interest in the subject by understanding the
use of economic techniques in
macroeconomics analysis of optimization.
 4. Methodology of the study

The Application of the difference of output per

worker in Economics across 127 countries,
we find a powerful and close association
between output per worker and measures
of social infrastructure. Countries with
long-standing policies favorable to
productive activities, rather than
diversion, produce much more output
per worker.
 …(cont‘)
The analysis suggests that the observed
difference in social infrastructure between
Niger and the United States is more than
enough to explain the 35-fold difference in
output per worker. The purpose of this
paper is to call attention to the strong
relation between social infrastructure and
output per worker.
 …(cont‘)
 Our summarize our analysis of the
determinants of differences in economic
performance among countries as
Output per Worker

(Inputs, Productivity)

Social Infrastructure.
 This above framework serves several purposes.
 5. Finding of the study
• Many of the predictions of growth theory
can be successfully considered in a cross-
section context by examining the levels of
income across Countries.
• The large variation in output per worker
across countries is only partially explained
by differences in physical capital and
educational attainment.
• Differences in social infrastructure across
countries cause large differences in capital
accumulation, educational attainment, and
productivity
  
CONCLUSION

 Countries produce high levels of output per

worker in the long run because they achieve
high rates of investment in physical capital
and human capital and because they use
these inputs with a high level of
productivity.
 The empirical analysis suggests that success
on each of these fronts is driven by social
infrastructure.
  
6. Critical appraisal of the study

 Critical appraisal of the study divided in to weak and

strong side.
6.1 Strong side of the study:-
 The authors of this research were placed their finding

in clear and understandable way for reviewers.

 The researcher is well organized and it has logical

consistency
 The conclusion part of the review is good and

understandable
 Totally the research is clear to understand what the

authors are talking about because the authors answer

all the questions raised for the study.
 …(cont‘)
6.2 weak sides of the study:-
o Some default we evaluate from the

study:-
. It is not clearly mentioned the type of the
data he used.
. Sampling technique included in this study
is also not that much clear.
. Totally methodology part is not much
comprehensible.
THANK YOU!!