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Productivity Growth and Organizational Learning

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  • Hildegunn E. Stokke

Abstract

A new specification of the sources of productivity growth is offered. Motivated by the lack of innovation and technology adoption in backward economies, a third channel of growth related to organizational structure, work ethics, and discipline in the production process (for simplicity called organizational learning) is suggested. The suggested specification generates new insights about the dominating source of growth during the development process: organizational learning in backward economies, technology adoption in middle-income economies, and innovation in developed economies. This adds to the current understanding of development as a transition from technology adoption to innovation. Numerical simulations of the Thai catch-up process since 1965 illustrate the importance of organizational learning. A counterfactual experiment shows how investments in secondary education contribute to the move from organizational learning to adoption of more advanced foreign technology. Copyright © 2008 The Author. Journal compilation © 2008 Blackwell Publishing Ltd.

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  • Hildegunn E. Stokke, 2008. "Productivity Growth and Organizational Learning," Review of Development Economics, Wiley Blackwell, vol. 12(4), pages 764-778, November.
  • Handle: RePEc:bla:rdevec:v:12:y:2008:i:4:p:764-778
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    References listed on IDEAS

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    1. World Bank, 2000. "Thailand - Social and Structural Review : Beyond the Crisis - Structural Reform for Stable Growth," World Bank Other Operational Studies 15105, The World Bank.
    2. Torfinn Harding & Jørn Rattsø, 2005. "The barrier model of productivity growth: South Africa," Discussion Papers 425, Statistics Norway, Research Department.
    3. World Bank, 2006. "World Development Indicators 2006," World Bank Publications, The World Bank, number 8151.
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    Cited by:

    1. Castellacci, Fulvio & Natera, Jose Miguel, 2013. "The dynamics of national innovation systems: A panel cointegration analysis of the coevolution between innovative capability and absorptive capacity," Research Policy, Elsevier, vol. 42(3), pages 579-594.
    2. Tetsushi Sonobe & John E. Akoten & Keijiro Otsuka, 2009. "An Exploration into the Successful Development of the Leather-Shoe Industry in Ethiopia," Review of Development Economics, Wiley Blackwell, vol. 13(4), pages 719-736, November.
    3. Fulvio Castellacci, 2011. "Closing the Technology Gap?," Review of Development Economics, Wiley Blackwell, vol. 15(1), pages 180-197, February.
    4. Erdal Yalcin & Davide Sala, 2014. "Uncertain Productivity Growth and the Choice between FDI and Export," Review of International Economics, Wiley Blackwell, vol. 22(1), pages 189-208, February.
    5. Jørn Rattsø & Torfinn Harding, 2009. "Looking Abroad, but Lagging Behind: How the World Technology Frontier Affects South Africa," Working Paper Series 10209, Department of Economics, Norwegian University of Science and Technology.
    6. Sultan Mehmood, 2013. "Access to External Finance and Innovation: A Macroeconomic Perspective," CPB Discussion Paper 218, CPB Netherlands Bureau for Economic Policy Analysis.
    7. Monika Kondratiuk-Nierodziñska, 2016. "New Knowledge Generation Capabilities And Economic Performance Of Polish Regions," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 11(3), pages 451-471, September.

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