Patterns of inter-sectoral diffusion of technological growth: income, concentration, and public capital stocks

This paper investigates the existence and character of technological growth diffusionin form of learning spillovers at the sector level of the economy. Based on panel datafor 47 countries during the postwar period the evidence suggests robust statisticalregularities of inter-sectoral learning resulting from a changing structure of demand.The findings further show differences in the magnitude of productivity spilloversacross sectors. In particular, the patterns reveal a distinctive role for upstreamproduction activities esp. manufacturing as a source of diffusion. When thetechnological growth potential of sectors in low-income economies is compared tohigh-income countries the empirical evidence does not show a tendency for catchingup to occur. However, higher potential for inter-sectoral diffusion of technologicalgrowth is associated with (i) low income concentration, and (ii) high public (humanand physical) capital stocks.