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Productivity, innovation and economic growth: understanding the embodied and disembodied contributions of factor inputs

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  • Perilla Jiménez, Juan Ricardo

    (Fundación Universidad del Norte)

Abstract

The role of productivity measurement in the assessment of the decoupling hypothesis–which suggests divergent paths between productivity and the labor income share–is investigated using a detailed dataset on quality-adjusted-production-factors across economic sectors in the Colombian economy over 1990-2019. The quality adjustment is found to increase the contribution of production factors, and to attenuate the contribution of productivity to value added growth. Cointegration relationships between alternative productivity indicators and the labor share do not hold at the aggregate level. But they hold for a number of industries. Short-run robust negative relationships arise for all sectors. But comparison between alternative measures of productivity leads to conclude that quality adjusted measures of productivity has the potential to improve model specification on the econometric assessment of the decoupling effect.

Suggested Citation

  • Perilla Jiménez, Juan Ricardo, 2023. "Productivity, innovation and economic growth: understanding the embodied and disembodied contributions of factor inputs," Documentos Departamento de Economía 53, Universidad del Norte.
    • Handle: RePEc:col:000383:000053
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    More about this item

    Keywords

    Productivity; growth accounting; time series cointegration; panel data;
    All these keywords.

    JEL classification:

    • O22 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Project Analysis
    • O23 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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