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Productivity convergence and international openness Author info | Abstract | Publisher info | Download info | Related research | Statistics Stephen Redding
James Proudman
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There is a strong partial correlation between openness and rates of productivity growth across UK manufacturing sectors. The paper investigates the relationship more formally, within a theoretical model of productivity catch-up. The model identifies three potential effects of international openness: openness may affect (a) domestic rates of innovation, (b) the quantity of technological know-how that may be transferred from the frontier to the less advanced economy, (c) the rate at which this technology transfer occurs. From the theoretical framework, an econometric equation is derived which is used to estimate the relationship between UK productivity growth, the UK-US productivity gap and the degree of international openness. International openness is found, primarily, to affect the rate of productivity convergence, and this relationship is robust to the inclusion of information on R&D intensity, human capital, unionisation and capacity utilisation.
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Paper provided by Bank of England in its series Bank of England working papers with number
77.
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References listed on IDEAS 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.: Gavin Cameron & James Proudman & Stephen Redding, .
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Nancy Benjamin & Michael J. Ferrantino, 2001.
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International Economic Journal ,
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CEP Discussion Papers
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"The Returns to Education: A Review of the Macro-Economic Literature ,"
CEE Discussion Papers
0006, Centre for the Economics of Education, LSE.
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Óscar Afonso, 2001.
"The Impact of International Trade on Economic Growth ,"
FEP Working Papers
106, Universidade do Porto, Faculdade de Economia do Porto.
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Gavin Cameron & James Proudman & Stephen Redding, .
"Deconstructing Growth in UK Manufacturing ,"
Bank of England working papers
73, Bank of England.
[Downloadable!]
Other versions: Quah, Danny, 2002.
"Technology Dissemination and Economic Growth: Some Lessons for the New Economy ,"
CEPR Discussion Papers
3207, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted)
Gavin Cameron & James Proudman & Stephen Redding, .
"Openness and its association with productivity growth in UK manufacturing industry ,"
Bank of England working papers
104, Bank of England.
[Downloadable!]
Barbara Sianesi, 2002.
"The returns to education: a review of the empirical macro-economic literature ,"
IFS Working Papers
W02/05, Institute for Fiscal Studies.
[Downloadable!]
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