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Productivity, Factor Accumulation and Social Networks: Theory and Evidence

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Author Info
R. Quentin Grafton () (Australian National University, Asia Pacific School of Economics and Government)
Tom Kompas () (Australian National University, Asia Pacific School of Economics and Governmen)
P. Dorian Owen (university of Otago, Department of Economics)

Additional information is available for the following registered author(s):

Abstract

The paper analyzes how social barriers to communication affect economy-wide productivity and factor accumulation. Using a dynamic model of an economy that includes a reproducible capital stock (physical or human) and effective labor, a negative relationship is shown to exist between social barriers to communication and total factor productivity (TFP), per capita consumption and reproducible capital. Robust estimates obtained from cross-country data are consistent with the model’s predictions. The theory and empirical results help explain cross-country differences in TFP, the high productivity performance of leading industrialized countries and how productivity ‘catch up’ may be initiated.

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Publisher Info
Paper provided by Australian National University, Economics and Environment Network in its series Economics and Environment Network Working Papers with number 0401.

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Length: 41 pages
Date of creation: Mar 2004
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Handle: RePEc:anu:eenwps:0401

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Web page: http://een.anu.edu.au/

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Related research
Keywords: productivity dynamic model barriers to communication

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Find related papers by JEL classification:
O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
C61 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Optimization Techniques; Programming Models; Dynamic Analysis
C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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