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Technology Diffusion or Capital Accumulation? An Empirical Assessment of Convergence in Manufacturing

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  • Silvia Dal Bianco

    (Department of Economics and Quantitative Methods, University of Pavia)

Abstract

In this paper I consider 28 developed and developing countries, in the period 1980- 1995, and I employ the Within Group and the Generalized Method of Moments estimators to test, respectively, for Total Factor Productivity determinants and labor productivity convergence driving forces (i.e.capital accumulation and technological catch-up) in different manufacturing sectors, identified according the technological content of their production. Moreover, I test for inter-sectoral and cross-country heterogeneity of labor productivity convergence tendencies. My results show that technology growth rate is enhanced by technological transfer, in all manufacturing sectors and countries, and that cross-country convergence is determined by technology diffusion rather than capital accumulation. Further, I find that the rate of technological convergence appears higher in emerging economies, particularly in High Tech sectors. Finally, tertiary education seems to be relatively more important, as absorptive capability, than secondary one.

Suggested Citation

  • Silvia Dal Bianco, 2010. "Technology Diffusion or Capital Accumulation? An Empirical Assessment of Convergence in Manufacturing," Quaderni di Dipartimento 114, University of Pavia, Department of Economics and Quantitative Methods.
    • Handle: RePEc:pav:wpaper:114
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    References listed on IDEAS

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    More about this item

    Keywords

    Classical and Technological Convergence; Absorption Capabilities; Technological Gap; TFP growth; Manufacturing sectors; Panel data;
    All these keywords.

    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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