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Interdependencies of US manufacturing sectoral TFPs: A spatial VAR approach

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  • Neusser, Klaus

Abstract

This paper examines sectoral interdependencies which is a key empirical premise to models that shun aggregate shocks as a source of business fluctuations. Using a very disaggregated database, it investigates the joint evolution of sectoral US manufacturing total factor productivity (TFP) using a semi-parametric spatial vector autoregressive framework. In this approach the interrelationship between sectors is a function on the "economic distance" between them. This distance is computed either from factor input shares or from input-output tables. It is found that sectoral TFP growth rates move independently from each other and that there is little evidence of complementarities or spillovers across sectors. This conclusion must be qualified for specific subsets of sectors.

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  • Neusser, Klaus, 2008. "Interdependencies of US manufacturing sectoral TFPs: A spatial VAR approach," Journal of Macroeconomics, Elsevier, vol. 30(3), pages 991-1004, September.
    • Handle: RePEc:eee:jmacro:v:30:y:2008:i:3:p:991-1004
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    Cited by:

    1. Xiuying Ma & Fei Jia & Hong Jiang & Xiangyun Xu, 2022. "The Impact of Non-R&D Intangible Capital on TFP Growth: Evidence from Multi-country Industry Level Data," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(4), pages 2890-2910, December.
    2. Mishra, Tapas & Jumah, Adusei & Parhi, Mamata, 2008. "Age-structured Human Capital and Spatial Total Factor Productivity Dynamics," Economics Series 226, Institute for Advanced Studies.
    3. Jia, Fei & Ma, Xiuying & Xu, Xiangyun & Xie, Lijuan, 2020. "The differential role of manufacturing and non-manufacturing TFP growth in economic growth," Structural Change and Economic Dynamics, Elsevier, vol. 52(C), pages 174-183.
    4. Julian Ramajo & Miguel A. Marquez & Geoffrey J.D. Hewings, 2013. "Spatio-temporal Analysis of Regional Systems: A Multiregional Spatial Vector Autoregressive Model for Spain," ERSA conference papers ersa13p159, European Regional Science Association.
    5. Miguel A. Márquez & Julián Ramajo & Geoffrey JD. Hewings, 2015. "Regional growth and spatial spillovers: Evidence from an SpVAR for the Spanish regions," Papers in Regional Science, Wiley Blackwell, vol. 94, pages 1-18, November.

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