Applying Solow Model To Measure The Appropriate Capital Stock And The Contribution Of Productivity To The Economic Growth In Lebanon, Jordan, Egypt, And Syria

Abstract

The productivity contribution to economic growth has never been measured in Lebanon, Jordan, Egypt, or Syria. This paper measures the contribution of productivity improvement to economic growth in each of the mentioned countries in addition to estimating the gap between the available capital stock and the appropriate one in a steady state world. The highest contribution is limited to 1.5% in Jordan compared with 0.4% (the lowest) in Syria and the average gap between available and appropriate capital stock exceeds 42%  of GDP.