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Technological Catch-up or Neoclassical Convergence? Identifying the Channels of Convergence for Italian Regions
[Technological Catch-up or Neoclassical Convergence?Identifying the Channels of Convergence for Italian Regions]

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Author Info
Scoppa, Vincenzo

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Abstract

We investigate whether Italian regions have converged in terms of output per worker because of physical capital accumulation, human capital accumulation or thanks to technological catch-up. In order to identify channels of convergence we adopt the methodology recently proposed by Wong (2007) and Feyrer (2007) which combine growth accounting with convergence regressions. Merging two datasets of regional economic accounts (ISTAT and CRENoS) to obtain longer time series, we show that convergence has been realized mainly thanks to technological catch-up and, to some extent, through human capital accumulation. On the other hand, physical capital has been a factor of divergence. These results are robust to model specifications, sets of data and alternative assumptions on parameters value.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 13051.

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Date of creation: 27 Jan 2009
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Handle: RePEc:pra:mprapa:13051

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Related research
Keywords: Absolute and Conditional Convergence; Channels of Convergence Technological Catch-up; Capital Accumulation; Italian regions;

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Find related papers by JEL classification:
O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
E23 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Production
E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical

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  4. Bernard, Andrew B & Jones, Charles I, 1996. "Technology and Convergence," Economic Journal, Royal Economic Society, vol. 106(437), pages 1037-44, July. [Downloadable!] (restricted)
  5. Scoppa, Vincenzo, 2007. "Quality of Human and Physical Capital and Technological Gaps across Italian Regions," MPRA Paper 15740, University Library of Munich, Germany. [Downloadable!]
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  14. Ben S. Bernanke & Refet S. Gurkaynak, 2001. "Is Growth Exogenous? Taking Mankiw, Romer and Weil Seriously," NBER Working Papers 8365, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  15. Steve Dowrick & Mark Rogers, 2002. "Classical and technological convergence: beyond the Solow-Swan growth model," Oxford Economic Papers, Oxford University Press, vol. 54(3), pages 369-385, July.
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This page was last updated on 2009-11-27.

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