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Technology Diffusion, Services, and Endogenous Growth in Europe. Is the Lisbon Strategy Useful?

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Author Info
Paolo Guerrieri
Bernardo Maggi
Valentina Meliciani
Pier Carlo Padoan

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Abstract

We explore the role of business services in knowledge accumulation and growth and the determinants of knowledge diffusion including the role of distance. A continuous-time model is estimated on several European countries, Japan, and the United States. Policy simulations illustrate the benefits for EU growth of the deepening of the single market, the reduction of regulatory barriers, and the accumulation of technology and human capital. Our results support the basic insights of the Lisbon Agenda. Economic growth in Europe is enhanced to the extent that: trade in services increases, technology accumulation and diffusion increase, regulation becomes both less intensive and more uniform across countries, and human capital accumulation increases in all countries.

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Paper provided by International Monetary Fund in its series IMF Working Papers with number 05/103.

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Length: 48 pages
Date of creation: 06 Jun 2005
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Handle: RePEc:imf:imfwpa:05/103

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Keywords: Economic growth ; Europe ; Manufacturing ; Economic models ; Transition economies ;

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