Abstract
ABSTRACT Several studies have considered factors influencing capital output differences among countries and reported that factors such as education of the workforce, capital allocation, taxes, and business profits partly explain capital-output differences. We disaggregate capital investment into six categories for nine major industrialized nations during the 1998 to 2016 period. The regression estimates of capital-output against several production factors show that capital-output ratios are a positive function of the education level of the workforce and R&D intensity, and a decreasing function of the tax burden on business profits. Among the countries studied, China, the UK, Italy, and India appear to be the most efficient in terms of capital-output ratios for the several capital investment categories examined.
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