Openness, Efficiency and Technology: An Industry Assessment
AbstractMost growth models imply positive impacts on economic growth from greater openness. And a key factor linking openness and growth is the efficiency with which resources are used. Empirically, however, the efficiency impacts of trade have been ambiguous. Using a stochastic frontier analysis, we examine the impact of openness on technical (in)efficiency for a sample of OECD economies. Unlike the bulk of related studies, we work at the industry level. Given recent debates on technology-inspired growth and TFP effects, we additionally examine whether ICT expenditures impacts openness and efficiency. We establish the elasticity of openness with respect to (in)efficiency; TFP and Scale Economies; and Technical Inefficiency across countries and sectors. Both openness and ICT usage have robustly positive impacts on efficiency. Our results shed light on the impact of, spillovers be- tween, and heterogeneity across countries and industries from, increasing openness interacted with the use of advanced technologies.
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Bibliographic InfoPaper provided by School of Economics, University of Surrey in its series School of Economics Discussion Papers with number 0812.
Length: 20 pages
Date of creation: Jul 2012
Date of revision:
Other versions of this item:
- Dimitris Christopoulos & Peter McAdam, 2013. "Openness, Efficiency and Technology: An Industry Assessment," Scottish Journal of Political Economy, Scottish Economic Society, vol. 60(1), pages 56-70, 02.
- NEP-ALL-2012-07-14 (All new papers)
- NEP-CSE-2012-07-14 (Economics of Strategic Management)
- NEP-EFF-2012-07-14 (Efficiency & Productivity)
- NEP-FDG-2012-07-14 (Financial Development & Growth)
- NEP-PBE-2012-07-14 (Public Economics)
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