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Capital Deepening and Manufacturing's Contribution to Regional Economic Convergence

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  • Weber, William L.
  • Domazlicky, Bruce R.

Abstract

Using data on the manufacturing sector for the 50 states during 1977-1996, we decompose labor productivity growth into changes due to enhanced efficiency, capital accumulation, and technological progress. We find some evidence that labor productivity is converging among the 50 states, although the variance of labor productivity increased during 1977-1996. Using a series of kernel distribution tests we find that capital accumulation and technological progress contributed to labor productivity growth during the period, but changes in state efficiency had no effect on productivity growth.

Suggested Citation

  • Weber, William L. & Domazlicky, Bruce R., 2006. "Capital Deepening and Manufacturing's Contribution to Regional Economic Convergence," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 36(01), pages 1-14.
    • Handle: RePEc:ags:jrapmc:132312
    DOI: 10.22004/ag.econ.132312
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    References listed on IDEAS

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    1. Mugera, Amin W. & Langemeier, Michael R. & Featherstone, Allen M., 2012. "Labor Productivity Growth in the Kansas Farm Sector: A Tripartite Decomposition Using a Non-Parametric Approach," Agricultural and Resource Economics Review, Cambridge University Press, vol. 41(3), pages 298-312, December.
    2. Richard J. Cebula & John E. Connaughton & Caroline Swartz, 2020. "Right-to-Work Laws as Economic Freedom: Their Role in Influencing the Geographic Pattern of Manufacturing Jobs, Incomes, and Finances," American Business Review, Pompea College of Business, University of New Haven, vol. 23(2), pages 431-450.
    3. Daniel Felsenstein, 2011. "Capital Deepening and Regional Inequality: An Empirical Analysis (refereed paper)," ERSA conference papers ersa10p759, European Regional Science Association.
    4. Michael Beenstock & Daniel Felsenstein & Nadav Ben Zeev, 2011. "Capital deepening and regional inequality: an empirical analysis," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 47(3), pages 599-617, December.

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