The main objective of this paper is to clarify the controversial role of energy in productivity growth. This is done by reconciling conventional approaches to the measurement of aggregated productivity growth with the microeconomic foundations provided by the energy economics and frontier productivity measurement literature. The use of Malmquist productivity indices allows us to broaden previous research by decomposing productivity growth into technological progress and technical efficiency change as well as analysing the relationship between energy and both sources of productivity change. By doing so, our findings are that energy indeed matters and that the consideration of technical efficiency contributes to a better understanding of both the temporal evolution and cross-country variability of aggregated productivity growth.
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Paper provided by Department of Economics, University of York in its series Discussion Papers with number
03/09.
Length: Date of creation: Date of revision: Handle: RePEc:yor:yorken:03/09
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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.:
Bernard, Andrew B & Jones, Charles I, 1996.
"Technology and Convergence,"
Economic Journal,
Royal Economic Society, vol. 106(437), pages 1037-44, July.
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