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The sources of total factor productivity growth: Evidence from Canadian data

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Author Info

  • Kenneth Carlaw
  • Stephen Kosempel

Abstract

A dynamic general equilibrium model is constructed and used to identify sources of total factor productivity growth in Canada and to quantify their importance. The model also provides procedures for constructing measures of technological progress. We find that periods of low productivity growth correspond to periods of high growth in investment-specific technology (IST) or high rates of technology embodiment. For example, the growth rate of IST was relatively high between 1974 and 1996. The higher growth rate of IST during this period should have increased the rate of productivity growth by an estimated 0.29 percentage points, ceteris paribus. Yet, productivity growth slowed. Why?

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File URL: http://www.tandfonline.com/doi/abs/10.1080/10438590410001629007
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Economics of Innovation and New Technology.

Volume (Year): 13 (2004)
Issue (Month): 4 ()
Pages: 299-309

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Handle: RePEc:taf:ecinnt:v:13:y:2004:i:4:p:299-309

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Related research

Keywords: Investment-specific technological change; Total factor productivity; Economic growth;

References

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  1. Greenwood, J. & Hercowitz, Z. & Krusell, P., 1996. "Long-Run Implications of Investment-Specific Technological Change," RCER Working Papers 420, University of Rochester - Center for Economic Research (RCER).
  2. Stephen Kosempel & Kenneth Carlaw, 2003. "Accounting For Canada¡¯S Economic Growth," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 28(2), pages 83-101, December.
  3. Jorgenson, Dale W., 1966. "The Embodiment Hypothesis," Scholarly Articles 3403063, Harvard University Department of Economics.
  4. Charles R. Hulten, 2000. "Total Factor Productivity: A Short Biography," NBER Working Papers 7471, National Bureau of Economic Research, Inc.
  5. Kenneth I. Carlaw & Richard G. Lipsey, 2003. "Productivity, Technology and Economic Growth: What is the Relationship?," Journal of Economic Surveys, Wiley Blackwell, vol. 17(3), pages 457-495, 07.
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Citations

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Cited by:
  1. Mario Pianta & Andrea Vaona, 2007. "Innovation and Productivity in European Industries," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 16(7), pages 485-499.
  2. Jesús Rodríguez López & Diego Martínez López & José Luis Torres Chacón, 2007. "The Productivity Paradox and the New Economy: The Spanish Case," Working Papers 07.01, Universidad Pablo de Olavide, Department of Economics.
  3. Cristiano Antonelli & Francesco Quatraro, 2010. "The effects of biased technological change on total factor productivity: empirical evidence from a sample of OECD countries," The Journal of Technology Transfer, Springer, vol. 35(4), pages 361-383, August.
  4. Diego Martínez & Jesús Rodríguez & José L. Torres, 2008. "ICT-specific technological change and productivity growth in the US 1980-2004," Working Papers 2008-4, Universidad de Málaga, Department of Economic Theory, Málaga Economic Theory Research Center.
  5. Diego Martínez & Jesús Rodríguez, 2009. "New technologies and regional growth: the case of Andalucía," The Annals of Regional Science, Springer, vol. 43(4), pages 963-987, December.
  6. Les T. Oxley & Kenneth I. Carlaw, 2004. "ICT Diffusion and Economic Growth in New Zealand," Econometric Society 2004 Australasian Meetings 167, Econometric Society.

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