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Sectoral Energy- and Labour-Productivity Convergence

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Henri De Groot ()
Peter Mulder ()

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Abstract

This paper provides an empirical analysis of energy- and labour-productivity convergence at a detailed sectoral level for 14 OECD countries, covering the period 1970-1997. A -convergence analysis shows that the development of cross-country variation in productivity performance depends on the level of aggregation. Both patterns of convergence as well as divergence are found. A -convergence analysis provides support for the hypothesis that in most sectors lagging countries tend to catch up with technological leaders, in particular in terms of energy productivity. Moreover, the results show that convergence is conditional rather than unconditional, meaning that productivity levels converge to country-specific steady states, and that cross-country differences of energy-productivity levels are substantially larger than of labour-productivity levels at all levels of sectoral aggregation. Finally, searching for the fundamentals determining cross-country productivity differentials reveals a positive productivity effect of energy prices and economies of scale in several sectors, while wages, investment share, openness and specialization play only a very limited role in explaining (cross-country differences in) energy- and labour-productivity growth. Keywords: energy productivity, labour productivity, convergence, sectoral analysis JEL codes: O13, O47, O5, Q43

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Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa04p337.

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Date of creation: Aug 2004
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Handle: RePEc:wiw:wiwrsa:ersa04p337

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Cited by:
(explanations, 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.)

  1. Peter Mulder & Henri de Groot, . "International Comparisons of Sectoral Energy- and Labour-Productivity Performance: Stylised Facts and Decomposition of Trends," CPB Discussion Papers 22, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
    Other versions:
  2. Machiel van Dijk & Richard Nahuis & Daniel Waagmeester, 2005. "Does Public Service Broadcasting Serve The Public? The Future Of Television In The Changing Media Landscape," Working Papers 05-13, Utrecht School of Economics. [Downloadable!]
    Other versions:
  3. Peter Mulder & Henri Groot, 2007. "Sectoral Energy- and Labour-Productivity Convergence," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 36(1), pages 85-112, January. [Downloadable!] (restricted)
    Other versions:
  4. repec:mop:credwp:08.12.79 is not listed on IDEAS
  5. Lucas Bretschger & Sjak Smulders, 2007. "Sustainable Resource Use and Economic Dynamics," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 36(1), pages 1-13, January. [Downloadable!] (restricted)
  6. Lucas Bretschger, 2006. "Energy Prices, Growth,and the Channels in Between: Theory and Evidence," Economics working paper series 06/47, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich. [Downloadable!]
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