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Sectoral Energy- and Labour-Productivity Convergence

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Author Info
Peter Mulder
Henri de Groot ()

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Abstract

This paper provides an empirical analysis of convergence patterns for energy- and labour-productivity developments at a detailed sectoral level for 14 OECD countries, covering the period 1970-1997. Cross-country differences of energy-productivity levels are shown to be substantially larger than cross-country differences of labour-productivity levels at all levels of sectoral aggregation. A sigma-convergence analysis shows that the development of cross-country variation in productivity performance depends on the level of aggregation. Both patterns of international productivity convergence and divergence exist across sectors.

Using a panel-data approach, we find in most sectors energy productivity to grow relatively fast in countries with relatively low initial productivity levels, while in several sectors this is also true for labour productivity. This evidence of beta-convergence supports the hypothesis that lagging countries tend to catch up with technological leaders, in particular in terms of energy productivity.

Moreover, the results show that convergence is conditional rather than unconditional, meaning that productivity levels converge to country-specific steady states. Searching for the fundamentals determining cross-country productivity differentials reveals a positive productivity effect of energy prices and economies of scale in several sectors, while wages, investment share, openness and specialisation play only a very limited role in explaining (cross-country differences in) energy- and labour-productivity growth.

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Paper provided by CPB Netherlands Bureau for Economic Policy Analysis in its series CPB Discussion Papers with number 23.

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Handle: RePEc:cpb:discus:23

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Related research
Keywords: energy; energy productivity; labour productivity; convergence; sectoral analysis;

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Find related papers by JEL classification:
O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
O5 - Economic Development, Technological Change, and Growth - - Economywide Country Studies
Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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    Other versions:
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Full references

Cited by:
(explanations, 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.)

  1. Peter Mulder & Henri de Groot, . "International Comparisons of Sectoral Energy- and Labour-Productivity Performance: Stylised Facts and Decomposition of Trends," CPB Discussion Papers 22, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
    Other versions:
  2. Machiel van Dijk & Richard Nahuis & Daniel Waagmeester, 2005. "Does Public Service Broadcasting Serve The Public? The Future Of Television In The Changing Media Landscape," Working Papers 05-13, Utrecht School of Economics. [Downloadable!]
    Other versions:
  3. Lucas Bretschger & Sjak Smulders, 2007. "Sustainable Resource Use and Economic Dynamics," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 36(1), pages 1-13, January. [Downloadable!] (restricted)
  4. Peter Mulder & Henri Groot, 2007. "Sectoral Energy- and Labour-Productivity Convergence," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 36(1), pages 85-112, January. [Downloadable!] (restricted)
    Other versions:
  5. Lucas Bretschger, 2006. "Energy Prices, Growth,and the Channels in Between: Theory and Evidence," Economics working paper series 06/47, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich. [Downloadable!]
  6. repec:mop:credwp:08.12.79 is not listed on IDEAS
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