Productivity growth in Australian manufacturing: a vintage capital model
AbstractRecent contributions by Hulten (1992) and Gort et al. (1993) indicate a renewed interest in using capital-embodied technology models to understand the sources of productivity growth. An advantage of models with capital-embodied technology is that current productivity is related to the prior time path of investment. This provides a potential dynamic link between past market conditions and current productivity performance. In particular, models with capital-embodied technology provide a possible explanation for the positive relationship between productivity growth and the rate of investment, particularly investment in capital equipment, found in cross-country studies (see, for example, Wolff (1991) and De Long and Summers (1992)). Regressions in the form of the relationships derived from the analysis are estimated using data for a cross-section of Australian manufacturing industries. Variables suggested by the analysis of the vintage capital model contribute significantly to the explanation of differences in average labour productivity growth across the sample industries. However, specific restrictions on coefficient values derived from the analysis are rejected by the regression results. The implications of this mixed support for the application of the vintage capital model to explaining labour productivity growth in Australian manufacturing are discussed
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 13003.
Date of creation: 1995
Date of revision:
Publication status: Published in International Journal of Manpower 1.16(1995): pp. 22-31
Australian manufacturing; productivity growth;
Find related papers by JEL classification:
- O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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- Intriligator, Michael D, 1992. " Productivity and the Embodiment of Technical Progress," Scandinavian Journal of Economics, Wiley Blackwell, vol. 94(0), pages S75-87, Supplemen.
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- Charles R. Hulten, 1992. "Growth Accounting When Technical Change is Embodied in Capital," NBER Working Papers 3971, National Bureau of Economic Research, Inc.
- Neil Dias Karunaratne, 2007. "Microeconomic Reform and Technical Efficiency in Australian Manufacturing," Discussion Papers Series 345, School of Economics, University of Queensland, Australia.
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