The Economic Impact of Capital-Skill Complementarities in German and US Industries Productivity Growth and the New Economy
AbstractUS labor productivity in ICT-skill intensive industries experienced tremendousincreases in post–1995 trend growth compared to Germany, while other (non-ICT-skillintensive) industries showed similar growth trends in both countries. Examining thesource of industry productivity growth in German ICT-skill intensive sectors, there is noempirical evidence on the influence of ICT-skill complementarities; rather was productivitygrowth of German Motor Vehicles & Other Transports driven by Non-ICT-skillcomplementarities. In case of the US two ICT-skill intensive sectors, Office Machinery &Electronic Equipment and Motor Vehicles & Other Transport, were found to haveexperienced strong productivity growth via ICT-skill complementarities. These findingsshed light on varying sectoral complementarities between physical and human capitaland show a decisive disparity in the source of German-US productivity differentials inthe goods-producing sector during the New Economy. Such differentials originatedfrom a substantial dissimilarity in production processes as well as from higher ICTintensity and skill endowment in the US.
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Bibliographic InfoPaper provided by Ifo Institute for Economic Research at the University of Munich in its series Ifo Working Paper Series with number Ifo Working Paper Nr. 89.
Date of creation: 2010
Date of revision:
Industry productivity growth; heterogeneous labor; capital-skill complementarity; information and communication technology;
Find related papers by JEL classification:
- O30 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - General
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
- O50 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - General
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