Capital Composition and Rate of Surplus Value: Empirical Evidence for Rethinking the Value Transfers in International Trade

Abstract

This article aims at advancing an explanation, still to be completed, of the paradox of productivity differences and surplus value rate at an international level. New empirical evidence is presented, and it is suggested that an explanation should be developed based on the analysis of the problem of value transfers in international trade. According to the findings of Martínez and Valle (2011), there is empirical evidence that suggests a pattern in which underdeveloped countries with low productivity have a high value composition of capital and a high rate of surplus value, the former being as high as or higher than the corresponding one in a developed country. This work is a contribution to the development of the state of the empirical analysis. Said contribution is made based on econometric and statistical evidence of the relationship between rate of surplus value and value composition of capital of a selection of countries and a sample of 70 countries. Data from Penn World (PWT) v.10, v.9 or Extended Penn World Table (EPWT), v.4 are used.