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Technical Diffusion, Productivity Convergence and Specialisation in OECD Manufacturing

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  • Dirk Frantzen
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    Abstract

    A panel data regression analysis investigates the issue of total factor productivity (TFP) convergence in OECD manufacturing during the period 1970-1995. The results imply: conditional β convergence, actual catching up and stronger convergence at a disaggregate level than at the level of manufacturing as a whole. The evolution of the standard deviation of the log of TFP shows that there is also evidence of σ convergence. The stronger convergence of TFP at a disaggregate level is explained by a high level of OECD manufacturing production specialisation, which is also shown to be very persistent. The degree of research specialisation is shown to be even higher and equally sticky. A correlation analysis shows that both specialisation patterns are related.

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    File URL: http://www.tandfonline.com/doi/abs/10.1080/02692170601035017
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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal International Review of Applied Economics.

    Volume (Year): 21 (2007)
    Issue (Month): 1 ()
    Pages: 75-98

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    Handle: RePEc:taf:irapec:v:21:y:2007:i:1:p:75-98

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    Web page: http://www.tandfonline.com/CIRA20

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    Related research

    Keywords: Innovation; technical diffusion; productivity convergence; specialisation;

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    1. Bhargava, A & Franzini, L & Narendranathan, W, 1982. "Serial Correlation and the Fixed Effects Model," Review of Economic Studies, Wiley Blackwell, vol. 49(4), pages 533-49, October.
    2. de la Fuente, A, 1996. "On the Sources of Convergence : A Close Look at the Spanish Regions," UFAE and IAE Working Papers 362.96, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    3. Bent Dalum & Keld Laursen & Gert Villumsen, 1998. "Structural Change in OECD Export Specialisation Patterns: de-specialisation and 'stickiness'," International Review of Applied Economics, Taylor & Francis Journals, vol. 12(3), pages 423-443.
    4. Krugman, Paul, 1987. "The narrow moving band, the Dutch disease, and the competitive consequences of Mrs. Thatcher : Notes on trade in the presence of dynamic scale economies," Journal of Development Economics, Elsevier, vol. 27(1-2), pages 41-55, October.
    5. Bernard, Andrew B & Jones, Charles I, 1996. "Comparing Apples to Oranges: Productivity Convergence and Measurement across Industries and Countries," American Economic Review, American Economic Association, vol. 86(5), pages 1216-38, December.
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