Advanced Search
MyIDEAS: Login to save this paper or follow this series

Sectoral Energy- and Labour-Productivity Convergence

Contents:

Author Info

  • Henri De Groot

    ()

  • Peter Mulder

    ()

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

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www-sre.wu-wien.ac.at/ersa/ersaconfs/ersa04/PDF/337.pdf
Download Restriction: no

Bibliographic Info

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

as in new window
Length:
Date of creation: Aug 2004
Date of revision:
Handle: RePEc:wiw:wiwrsa:ersa04p337

Contact details of provider:
Postal: Welthandelsplatz 1, 1020 Vienna, Austria
Web page: http://www.ersa.org

Related research

Keywords:

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
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.:
as in new window
  1. Robert J. Barro, 1989. "Economic Growth in a Cross Section of Countries," NBER Working Papers 3120, National Bureau of Economic Research, Inc.
  2. Miketa, Asami & Mulder, Peter, 2005. "Energy productivity across developed and developing countries in 10 manufacturing sectors: Patterns of growth and convergence," Energy Economics, Elsevier, Elsevier, vol. 27(3), pages 429-453, May.
  3. Mundlak, Yair, 1978. "On the Pooling of Time Series and Cross Section Data," Econometrica, Econometric Society, Econometric Society, vol. 46(1), pages 69-85, January.
  4. Jorgenson, Dale W, 1984. "The Role of Energy in Productivity Growth," American Economic Review, American Economic Association, American Economic Association, vol. 74(2), pages 26-30, May.
  5. Henri De Groot & Peter Mulder, 2004. "Sectoral Energy- and Labour-Productivity Convergence," ERSA conference papers, European Regional Science Association ersa04p337, European Regional Science Association.
  6. Islam, Nazrul, 1995. "Growth Empirics: A Panel Data Approach," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 110(4), pages 1127-70, November.
  7. Fagerberg, Jan, 1994. "Technology and International Differences in Growth Rates," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 32(3), pages 1147-75, September.
  8. Steven N. Durlauf & Danny T. Quah, 1998. "The New Empirics of Economic Growth," Working Papers, Santa Fe Institute 98-01-012, Santa Fe Institute.
  9. Bernard, Andrew B & Jones, Charles I, 1996. "Comparing Apples to Oranges: Productivity Convergence and Measurement across Industries and Countries," American Economic Review, American Economic Association, American Economic Association, vol. 86(5), pages 1216-38, December.
  10. Mankiw, N Gregory & Romer, David & Weil, David N, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 107(2), pages 407-37, May.
  11. Charles I. Jones, . "On the Evolution of the World Income Distribution," Working Papers, Stanford University, Department of Economics 97009, Stanford University, Department of Economics.
  12. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, Elsevier, vol. 22(1), pages 3-42, July.
  13. Robert K. Kaufmann, 2004. "The Mechanisms for Autonomous Energy Efficiency Increases: A Cointegration Analysis of the US Energy/GDP Ratio," The Energy Journal, International Association for Energy Economics, International Association for Energy Economics, vol. 0(Number 1), pages 63-86.
  14. Andrew B. Bernard & Steven N. Durlauf, 1994. "Interpreting Tests of the Convergence Hypothesis," NBER Technical Working Papers, National Bureau of Economic Research, Inc 0159, National Bureau of Economic Research, Inc.
  15. T. W. Swan, 1956. "ECONOMIC GROWTH and CAPITAL ACCUMULATION," The Economic Record, The Economic Society of Australia, The Economic Society of Australia, vol. 32(2), pages 334-361, November.
  16. Swan, Trevor W, 2002. "Economic Growth," The Economic Record, The Economic Society of Australia, The Economic Society of Australia, vol. 78(243), pages 375-80, December.
  17. Dalgaard, Carl-Johan & Vastrup, Jacob, 2001. "On the measurement of [sigma]-convergence," Economics Letters, Elsevier, Elsevier, vol. 70(2), pages 283-287, February.
  18. Peter Mulder & Henri de Groot, 2003. "International comparison of sectoral energy- and labour-productivity performance; stylised facts and decomposition of trends," CPB Discussion Paper, CPB Netherlands Bureau for Economic Policy Analysis 22, CPB Netherlands Bureau for Economic Policy Analysis.
  19. Bernard, A.B. & Jones, C.I., 1993. "Productivity Across Industries and Countries: Time Series Theory and Evidence," Working papers, Massachusetts Institute of Technology (MIT), Department of Economics 93-17, Massachusetts Institute of Technology (MIT), Department of Economics.
  20. Chatterji, Monojit, 1992. "Convergence Clubs and Endogenous Growth," Oxford Review of Economic Policy, Oxford University Press, Oxford University Press, vol. 8(4), pages 57-69, Winter.
  21. Quah, Danny, 1997. "Empirics for Growth and Distribution: Stratification, Polarization, and Convergence Clubs," CEPR Discussion Papers, C.E.P.R. Discussion Papers 1586, C.E.P.R. Discussion Papers.
  22. Nazrul Islam, 2003. "What have We Learnt from the Convergence Debate?," Journal of Economic Surveys, Wiley Blackwell, Wiley Blackwell, vol. 17(3), pages 309-362, 07.
  23. Unander, Fridtjof & Karbuz, Sohbet & Schipper, Lee & Khrushch, Marta & Ting, Michael, 1999. "Manufacturing energy use in OECD countries: decomposition of long-term trends," Energy Policy, Elsevier, Elsevier, vol. 27(13), pages 769-778, November.
  24. Paul Romer, 1989. "Endogenous Technological Change," NBER Working Papers 3210, National Bureau of Economic Research, Inc.
  25. Wolfgang Keller, 2002. "Geographic Localization of International Technology Diffusion," American Economic Review, American Economic Association, American Economic Association, vol. 92(1), pages 120-142, March.
  26. William A. Brock & M. Scott Taylor, 2004. "The Green Solow Model," NBER Working Papers 10557, National Bureau of Economic Research, Inc.
  27. Steven N. Durlauf & Paul A. Johnson, 1992. "Local Versus Global Convergence Across National Economies," NBER Working Papers 3996, National Bureau of Economic Research, Inc.
  28. Cleveland, Cutler J. & Kaufmann, Robert K. & Stern, David I., 2000. "Aggregation and the role of energy in the economy," Ecological Economics, Elsevier, Elsevier, vol. 32(2), pages 301-317, February.
  29. Paul M Romer, 1999. "Increasing Returns and Long-Run Growth," Levine's Working Paper Archive 2232, David K. Levine.
  30. Baumol, William J, 1986. "Productivity Growth, Convergence, and Welfare: What the Long-run Data Show," American Economic Review, American Economic Association, American Economic Association, vol. 76(5), pages 1072-85, December.
  31. Chamberlain, Gary, 1982. "Multivariate regression models for panel data," Journal of Econometrics, Elsevier, Elsevier, vol. 18(1), pages 5-46, January.
  32. Miller, Stephen M. & Upadhyay, Mukti P., 2002. "Total factor productivity and the convergence hypothesis," Journal of Macroeconomics, Elsevier, Elsevier, vol. 24(2), pages 267-286, June.
  33. Anders Sorensen, 2001. "Comparing Apples to Oranges: Productivity Convergence and Measurement across Industries and Countries: Comment," American Economic Review, American Economic Association, American Economic Association, vol. 91(4), pages 1160-1167, September.
  34. Abramovitz, Moses, 1986. "Catching Up, Forging Ahead, and Falling Behind," The Journal of Economic History, Cambridge University Press, Cambridge University Press, vol. 46(02), pages 385-406, June.
  35. Mulder, Peter & de Groot, Henri L. F. & Hofkes, Marjan W., 2003. "Explaining slow diffusion of energy-saving technologies; a vintage model with returns to diversity and learning-by-using," Resource and Energy Economics, Elsevier, Elsevier, vol. 25(1), pages 105-126, February.
  36. Maria Abreu Henri L. F. de Groot & Raymond J. G. M. Florax, 2005. "A Meta-Analysis of β-Convergence: the Legendary 2%," Journal of Economic Surveys, Wiley Blackwell, Wiley Blackwell, vol. 19(3), pages 389-420, 07.
  37. Andrew B. Bernard & Charles I. Jones, 2001. "Comparing Apples to Oranges: Productivity Convergence and Measurement across Industries and Countries: Reply," American Economic Review, American Economic Association, American Economic Association, vol. 91(4), pages 1168-1169, September.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa04p337. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gunther Maier).

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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