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The United States as a growth leader for the Euro Area - A multi-sectoral approach

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Author Info

  • McQuinn, Kieran

    (Central Bank and Financial Services Authority of Ireland)

  • Slevin, Geraldine

    (Central Bank and Financial Services Authority of Ireland)

Abstract

In this paper we examine the role played by technology spillovers between the United States and the Euro area. We explicitly assume that the United States acts as a growth leader for Europe and that the Euro area is constantly converging to US total factor productivity (TFP) levels. As a result, a growing divergence in the level of US TFP vis-`a-vis that of Europe results in an increase in the growth rate of Euro area TFP. The model is applied to TFP data from 26 subsectors of both economies. The role of greater ICT adoption in increasing Euro area TFP is also explored.

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File URL: http://www.centralbank.ie/publications/documents/13RT09.pdf
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Bibliographic Info

Paper provided by Central Bank of Ireland in its series Research Technical Papers with number 13/RT/09.

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Length: 29 pages
Date of creation: Nov 2009
Date of revision:
Handle: RePEc:cbi:wpaper:13/rt/09

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Cited by:
  1. Dimitris Christopoulos & Peter McAdam, 2013. "Openness, Efficiency and Technology: An Industry Assessment," Scottish Journal of Political Economy, Scottish Economic Society, vol. 60(1), pages 56-70, 02.

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