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Sectoral Energy- and Labour-Productivity Convergence

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Author Info
Peter Mulder
Henri Groot ()

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Abstract

This paper empirically investigates the development of cross-country differences in energy- and labour productivity. The analysis is performed at a detailed sectoral level for 14 OECD countries, covering the period 1970–1997. A σ-convergence analysis reveals that the development over time of the cross-country variation in productivity performance differs across sectors as well as across different levels of aggregation. Both patterns of convergence as well as divergence are found. Cross-country variation of productivity levels is typically larger for energy than for labour. A β-convergence analysis provides support for the hypothesis that in most sectors lagging countries tend to catch up with technological leaders, in particular in terms of energy productivity. Moreover, the results show that convergence is conditional, meaning that productivity levels converge to country-specific steady states. Energy prices and wages are shown to positively affect energy- and labour-productivity growth, respectively. We also find evidence for the importance of economies of scale, whereas the investment share, openness and specialization play only a modest role in explaining cross-country variation in energy- and labour-productivity growth. Copyright Springer Science+Business Media, Inc. 2007

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File URL: http://hdl.handle.net/10.1007/s10640-006-9042-y
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Publisher Info
Article provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.

Volume (Year): 36 (2007)
Issue (Month): 1 (January)
Pages: 85-112
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Handle: RePEc:kap:enreec:v:36:y:2007:i:1:p:85-112

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Web page: http://www.springerlink.com/link.asp?id=100263

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Related research
Keywords: convergence; energy productivity; labour productivity; sectoral analysis; O13; O47; O5; Q43;

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References listed on IDEAS
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    Other versions:
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Machiel van Dijk & Richard Nahuis & Daniel Waagmeester, 2005. "Does Public Service Broadcasting Serve The Public? The Future Of Television In The Changing Media Landscape," Working Papers 05-13, Utrecht School of Economics. [Downloadable!]
    Other versions:
  2. Peter Mulder & Henri de Groot, . "International Comparisons of Sectoral Energy- and Labour-Productivity Performance: Stylised Facts and Decomposition of Trends," CPB Discussion Papers 22, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
    Other versions:
  3. Peter Mulder & Henri Groot, 2007. "Sectoral Energy- and Labour-Productivity Convergence," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 36(1), pages 85-112, January. [Downloadable!] (restricted)
    Other versions:
  4. repec:mop:credwp:08.12.79 is not listed on IDEAS
  5. Lucas Bretschger & Sjak Smulders, 2007. "Sustainable Resource Use and Economic Dynamics," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 36(1), pages 1-13, January. [Downloadable!] (restricted)
  6. Lucas Bretschger, 2006. "Energy Prices, Growth,and the Channels in Between: Theory and Evidence," CER-ETH Economics working paper series 06/47, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich. [Downloadable!]
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