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Technological Change and Transition : Relative Contributions to Worldwide Growth during the 1990s

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Author Info
Oleg Badunenko
Daniel J. Henderson
Valentin Zelenyuk

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Abstract

In this paper we used the procedures developed in the Kumar and Russell (2002) growth-accounting study to examine cross-country growth during the 1990's. Using a data set comprising developed, newly industrialized, developing and transitional economies, we decomposed the growth of output per worker into components attributable to technological catch-up, technological change and capital accumulation. In contrast to the study by Kumar and Russell (2002), which concluded that capital deepening was the major force of growth and change in the world income per worker distribution over the 1965-1990 period, our analysis showed that, during the 1990's, the major force in the further divergence of the rich and the poor was due to technological change, whereas capital accumulation played a lesser and opposite role. In further contrast, we found that efficiency changes (insignificantly) led (on average) to regress rather than progress. Finally, although on average we found that transitional economies performed similar to the rest of the world, the procedure was able to discover some interesting patterns within the set of transitional countries.

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Paper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 740.

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Length: 45 p.
Date of creation: 2007
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Publication status: Published in: Oxford Bulletin of Economics and Statistics 70 (2008) 4, 461-491
Handle: RePEc:diw:diwwpp:dp740

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Related research
Keywords: Data Envelopment Analysis Growth Convergence Transitional Economies

Find related papers by JEL classification:
O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
P27 - Economic Systems - - Socialist Systems and Transition Economies - - - Performance and Prospects
P52 - Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies

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