Technology Diffusion or Capital Accumulation? An Empirical Assessment of Convergence in Manufacturing
AbstractIn 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.
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Bibliographic InfoPaper provided by University of Pavia, Department of Economics and Quantitative Methods in its series Quaderni di Dipartimento with number 114.
Length: 34 pages
Date of creation: Jun 2010
Date of revision:
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More information through EDIRC
Classical and Technological Convergence; Absorption Capabilities; Technological Gap; TFP growth; Manufacturing sectors; Panel data;
Find related papers by JEL classification:
- O14 - Economic Development, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
- L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
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