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Treating Intangible Inputs As Investment Goods

The Impacton Canadian GDP

Treating Intangible Inputs As Investment Goods by Nazim Belhocine
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This paper constructs a data set to document firms'' expenditures on an identifiable list of intangible items and examines the implications of treating intangible spending as an acquisition of final (investment) goods on GDP growth for Canada. It finds that investment in intangible capital by 2002 is almost as large as the investment in physical capital. This result is in line with similar findings for the U.S. and the U.K. Furthermore, the growth in GDP and labor productivity may be underestimated by as much as 0.1 percentage point per year during this same period.
International Monetary Fund; November 2009
21 pages; ISBN 9781452700618
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Title: Treating Intangible Inputs As Investment Goods
Author: Nazim Belhocine