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

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  • Oleg Badunenko
  • Daniel J. Henderson
  • Valentin Zelenyuk

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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Bibliographic Info

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
Date of revision:
Handle: RePEc:diw:diwwpp:dp740

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Keywords: Data Envelopment Analysis; Growth; Convergence; Transitional Economies;

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Citations

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Cited by:
  1. Blanchard, Olivier & Kremer, Michael R., 1997. "Disorganization," Scholarly Articles 3659691, Harvard University Department of Economics.
  2. Valentin Zelenyuk & Leopold Simar, 2011. "To Smooth or Not to Smooth? The Case of Discrete Variables in Nonparametric Regressions," CEPA Working Papers Series WP102011, School of Economics, University of Queensland, Australia.
  3. Kerekes, Monika, 2007. "Analyzing patterns of economic growth: a production frontier approach," Discussion Papers 2007/15, Free University Berlin, School of Business & Economics.
  4. Growiec, Jakub, 2009. "On the Measurement of Technological Progress Across Countries," MPRA Paper 19321, University Library of Munich, Germany.
  5. Jakub Growiec, 2012. "The World Technology Frontier: What Can We Learn from the US States?-super-," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, Department of Economics, University of Oxford, vol. 74(6), pages 777-807, December.
  6. Anthony J. Glass & Karligash Kenjegalieva & Robin Sickles, 2012. "The Effects of Efficiency and TFP Growth on Nitrogen and Sulphur Emissions in Europe: A Multistage Spatial Analysis," Discussion Paper Series, Department of Economics, Loughborough University 2012_11, Department of Economics, Loughborough University, revised Oct 2012.
  7. Valentin Zelenyuk, 2010. "Aggregation of Economic Growth Rates and of its Sources," CEPA Working Papers Series WP032010, School of Economics, University of Queensland, Australia.
  8. Allen, Robert C., 2012. "Technology and the great divergence: Global economic development since 1820," Explorations in Economic History, Elsevier, Elsevier, vol. 49(1), pages 1-16.
  9. Oleg Badunenko & Daniel Henderson & R. Russell, 2013. "Polarization of the worldwide distribution of productivity," Journal of Productivity Analysis, Springer, Springer, vol. 40(2), pages 153-171, October.
  10. Diego Romero-Ávila, 2013. "Is Physical Investment The Key To China'S Growth Miracle?," Economic Inquiry, Western Economic Association International, Western Economic Association International, vol. 51(4), pages 1948-1971, October.
  11. Wang, Chunhua, 2013. "Changing energy intensity of economies in the world and its decomposition," Energy Economics, Elsevier, Elsevier, vol. 40(C), pages 637-644.
  12. Konstantinos Chatzimichael & Vangelis Tzouvelekas, 2014. "Human capital contributions to explain productivity differences," Journal of Productivity Analysis, Springer, Springer, vol. 41(3), pages 399-417, June.
  13. Francesco Aiello & Camilla Mastromarco & Angelo Zago, 2011. "Be productive or face decline. On the sources and determinants of output growth in Italian manufacturing firms," Empirical Economics, Springer, Springer, vol. 41(3), pages 787-815, December.
  14. Leopold Simar & Ingrid Van Keilegom & Valentin Zelenyuk, 2014. "Nonparametric Least Squares Methods for Stochastic Frontier Models," CEPA Working Papers Series WP032014, School of Economics, University of Queensland, Australia.
  15. Claudia Curi & Paolo Guarda & Valentin Zelenyuk, 2011. "Changes in bank specialisation: comparing foreign subsidiaries and branches in Luxembourg," BCL working papers, Central Bank of Luxembourg 67, Central Bank of Luxembourg.
  16. Michael Danquah & Enrique Moral-Benito & Bazoumana Ouattara, 2014. "TFP growth and its determinants: a model averaging approach," Empirical Economics, Springer, Springer, vol. 47(1), pages 227-251, August.

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