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Prepared by Ebrima Faal.
The paper uses the Baxter-King (BK) Filter (1995) to estimate trends.
The Bougainville mine is still closed as of late 2005.
GDP per capita (PPP US$) accounts for price differences between countries. In principle, at the PPP rate, 1 PPP dollar has the same purchasing power in the domestic economy as 1 U.S. dollar has in the U.S. economy.
The national accounts include an estimate of output of the informal sector, but the official “formal sector” employment measures exclude the self-employed, family workers, and jobs in the informal sector. We use the more comprehensive measure—the economically active labor force—in our analysis to try to capture the contribution of workers in the latter categories.
The assumption of fixed weights of 0.67 for labor and 0.33 for capital is consistent with those of other researchers. See for example Bosworth (1998), Santaella (1998), and Loayza, Fajnzylber and Calderon (2002).