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Absorptive Capacity and Frontier Technology: Evidence from OECD Manufacturing Industries

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Abstract

This paper investigates whether differences in absorptive capacity help to explain cross-country differences in the level of productivity. We utilise stochastic frontier analysis to investigate two potential sources of this inefficiency: differences in human capital and R&D for nine industries in twelve OECD countries over the period 1973-92. We find that inefficiency in production does indeed exist and it depends upon the level of human capital of the country's workforce. Evidence that the amount of R&D an industry undertakes is also important is less robust.

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Bibliographic Info

Paper provided by National Institute of Economic and Social Research in its series NIESR Discussion Papers with number 140.

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Date of creation: Oct 2002
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Handle: RePEc:nsr:niesrd:140

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Cited by:
  1. Chevalier, P-A. & Lecat, R. & Oulton, N., 2009. "Convergence of firm-level productivity, globalisation, information technology, and competition: evidence from France," Working papers 237, Banque de France.
  2. Richard Harris & John Moffat, 2012. "Total Factor Productivity Growth in Local Economic Partnership Regions in Britain, 1997-2008," SERC Discussion Papers 0112, Spatial Economics Research Centre, LSE.

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