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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)

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    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.

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    File URL: http://economia.unipv.it/docs/dipeco/quad/ps/RePEc/pav/wpaper/q114.pdf
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    Bibliographic Info

    Paper provided by University of Pavia, Department of Economics and Quantitative Methods in its series Quaderni di Dipartimento with number 114.

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    Length: 34 pages
    Date of creation: Jun 2010
    Date of revision:
    Handle: RePEc:pav:wpaper:114

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    Related research

    Keywords: Classical and Technological Convergence; Absorption Capabilities; Technological Gap; TFP growth; Manufacturing sectors; Panel data;

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    References

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    1. Griffith, Rachel & Redding, Stephen J & Van Reenen, John, 2000. "Mapping The Two Faces Of R&D: Productivity Growth In A Panel Of OECD Industries," CEPR Discussion Papers 2457, C.E.P.R. Discussion Papers.
    2. Francesco Pigliaru, 2003. "Detecting Technological Catch-Up in Economic Convergence," Metroeconomica, Wiley Blackwell, vol. 54(2-3), pages 161-178, 05.
    3. Par Hansson & Magnus Henrekson, 1994. "What makes a country socially capable of catching up?," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 130(4), pages 760-783, December.
    4. Diewert, W. E., 1976. "Exact and superlative index numbers," Journal of Econometrics, Elsevier, vol. 4(2), pages 115-145, May.
    5. Pack, Howard & Westphal, Larry E., 1986. "Industrial strategy and technological change : Theory versus reality," Journal of Development Economics, Elsevier, vol. 22(1), pages 87-128, June.
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