IDEAS home Printed from https://ideas.repec.org/p/sek/iacpro/4707377.html
   My bibliography  Save this paper

Technological Progress, Labour Productivity and Economic Growth: Disentangling the Negative and Positive Effects

Author

Listed:
  • MERTER MERT

    (Gazi University)

Abstract

This study simply claims that technological progress has positive and negative effects on the labour productivity, so, on the economic growth. Technological progress may have a negative effect on economic growth because of skills obsolescence of labour. For this reason, if the nature of technological progress is assumed as Harrod-neutral for the steady-state analysis, then, the net effect of the technological progress on the economic growth can be examined. Using Hicks-neutrality, it cannot be possible to investigate positive and negative effects. The present study offers a simple calculation procedure in order to disentangle the positive and negative effects. Finally, the study tries to introduce capital-deepening-induced technological progress, if the growth rate and contribution of technological progress is found negative while there is positive economic growth and the steady state conditions are hold at the final state.

Suggested Citation

  • Merter Mert, 2017. "Technological Progress, Labour Productivity and Economic Growth: Disentangling the Negative and Positive Effects," Proceedings of International Academic Conferences 4707377, International Institute of Social and Economic Sciences.
    • Handle: RePEc:sek:iacpro:4707377
    as

    Download full text from publisher

    File URL: https://iises.net/proceedings/28th-international-academic-conference-tel-aviv-israel/table-of-content/detail?cid=47&iid=012&rid=7377
    File Function: First version, 2017
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. H. Uzawa, 1961. "Neutral Inventions and the Stability of Growth Equilibrium," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 28(2), pages 117-124.
    2. Senay Acikgoz & Merter Mert, 2014. "Sources of Growth Revisited: The Importance of the Nature of Technological Progress," Journal of Applied Economics, Taylor & Francis Journals, vol. 17(1), pages 31-62, May.
    3. Madsen, Jakob B., 2010. "The anatomy of growth in the OECD since 1870," Journal of Monetary Economics, Elsevier, vol. 57(6), pages 753-767, September.
    4. Mr. N. F. R. Crafts, 2000. "Globalization and Growth in the Twentieth Century," IMF Working Papers 2000/044, International Monetary Fund.
    5. J. R. Hicks, 1963. "The Theory of Wages," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-00189-7.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Senay Acikgoz & Merter Mert, 2015. "A Short Note on the Fallacy of Identification of Technological Progress in Models of Economic Growth," SAGE Open, , vol. 5(2), pages 21582440155, April.
    2. Ismail Senturk & Fiaz Ahmad Sulehri & Syeda Mehak Ali, 2022. "Financial Development and Innovation Led-Growth: A Case of Selected Developing Countries," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 8(3), pages 81-97, September.
    3. Clemens Struck & Adnan Velic, 2017. "To Augment Or Not To Augment? A Conjecture On Asymmetric Technical Change," Trinity Economics Papers tep0117, Trinity College Dublin, Department of Economics.
    4. Chancellor, Will & Hughes, Neal & Zhao, Shiji & Soh, Wei Ying & Valle, Haydn & Boult, Christopher, 2021. "Controlling for the effects of climate on total factor productivity: A case study of Australian farms," Food Policy, Elsevier, vol. 102(C).
    5. D. Besomi, 1999. "Harrod on the classification of technological progress. The origin of a wild-goose chase," BNL Quarterly Review, Banca Nazionale del Lavoro, vol. 52(208), pages 95-117.
    6. Robert Z. Lawrence, 2015. "Recent Declines in Labor's Share in US Income: A Preliminary Neoclassical Account," Working Paper Series WP15-10, Peterson Institute for International Economics.
    7. Gary Jefferson, 2016. "Growth Theory and Growth Accounting: Reformulating Our Understanding of Growth," Working Papers 106, Brandeis University, Department of Economics and International Business School.
    8. Dongya Koh & Raül Santaeulàlia-Llopis, 2017. "Countercyclical Elasticity of Substitution," Working Papers 946, Barcelona School of Economics.
    9. Peretto, Pietro F. & Valente, Simone, 2011. "Resources, innovation and growth in the global economy," Journal of Monetary Economics, Elsevier, vol. 58(4), pages 387-399.
    10. Basso, Henrique S. & Jimeno, Juan F., 2021. "From secular stagnation to robocalypse? Implications of demographic and technological changes," Journal of Monetary Economics, Elsevier, vol. 117(C), pages 833-847.
    11. Jakob B. Madsen* & Md. Rabiul Islam, 2012. "The Anatomy of the Asian Take-off," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 4(2), pages 1-24, July.
    12. Antonin Bergeaud & Gilbert Cette & Rémy Lecat, 2014. "Le produit intérieur brut par habitant sur longue période en France et dans les pays avancés : le rôle de la productivité et de l’emploi," Économie et Statistique, Programme National Persée, vol. 474(1), pages 5-34.
    13. Benoît Lyrette & Paul-Martel Roy, 1992. "Le régime des décrets favorise-t-il la paix industrielle? L'expérience des activités manufacturières québécoises, 1980-1988," Canadian Public Policy, University of Toronto Press, vol. 18(3), pages 261-274, September.
    14. Ryuzo Sato & Tamaki Morita, 2009. "Quantity Or Quality: The Impact Of Labour Saving Innovation On Us And Japanese Growth Rates, 1960–2004," The Japanese Economic Review, Japanese Economic Association, vol. 60(4), pages 407-434, December.
    15. Chirwa, Themba G. & Odhiambo, Nicholas M., 2016. "What Drives Long-Run Economic Growth? Empirical Evidence from South Africa," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 69(4), pages 429-456.
    16. Growiec, Jakub, 2018. "Factor-specific technology choice," Journal of Mathematical Economics, Elsevier, vol. 77(C), pages 1-14.
    17. Miguel A León-Ledesma & Peter McAdam & Alpo Willman, 2012. "Non-Balanced Growth and Production Technology Estimation," Studies in Economics 1204, School of Economics, University of Kent.
    18. Georges Daw, 2022. "Determinants of Wealth Disparities in the EU: A Multi-scale Development Accounting Investigation," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 64(2), pages 211-254, June.
    19. Tamotsu Nakamura, 2022. "Stone–Geary type preferences and the long-run labor supply," Evolutionary and Institutional Economics Review, Springer, vol. 19(1), pages 169-188, April.
    20. Li, Defu & Bental, Benjamin, 2023. "What determines the Direction of Technological Progress(2023.11.16)?," MPRA Paper 119211, University Library of Munich, Germany, revised 16 Nov 2023.

    More about this item

    Keywords

    Economic growth; technological progress; skills obsolescence.;
    All these keywords.

    JEL classification:

    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O39 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Other

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sek:iacpro:4707377. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Klara Cermakova (email available below). General contact details of provider: https://iises.net/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.