Why do growth rates differ? Evidence from cross-country data on private sector production
AbstractWe estimate a standard production function with a new cross-country data set on business sector production, wages and R&D investment for a selection of 14 OECD countries including the United States. The data sample covers the years 1960–2004. The data suggest that growth differences can largely be explained by capital deepening and an ability to produce new technology in the form of new patents. The importance of patents is magnified by the openness of the economy. We find some evidence of increasing elasticity of substitution over time, all though the results are sensitive to assumptions on the nature of technological progress.
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Bibliographic InfoPaper provided by Bank of Finland in its series Research Discussion Papers with number 13/2008.
Length: 29 pages
Date of creation: 19 May 2008
Date of revision:
growth; R&D; production function; patents;
Other versions of this item:
- Juha Kilponen & Matti Viren, 2010. "Why do growth rates differ? Evidence from cross-country data on private sector production," Empirica, Springer, Springer, vol. 37(3), pages 311-328, July.
- E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
- O43 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-05-24 (All new papers)
- NEP-CBA-2008-05-24 (Central Banking)
- NEP-EFF-2008-05-24 (Efficiency & Productivity)
- NEP-IPR-2008-05-24 (Intellectual Property Rights)
- NEP-MAC-2008-05-24 (Macroeconomics)
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