GNP Growth Accounting in the Open Economy: Parametric and Nonparametric Estimates for Switzerland

This paper identifies the contributions of the major factors explaining Swiss nominal GNP growth in an open-economy setting: technological change, increases in the endowments of labor and capital, movements in the terms of trade, and domestic output price changes. We follow in turns a nonparametric and a parametric approach. Both rest on a tight theoretical foundation, being based on the GNP function approach to modeling the production sector of an open economy.