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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.

Suggested Citation

  • 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
    DOI: 10.1111/j.1467-9361.2008.00445.x
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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 Publications - Reports 15105, The World Bank Group.
    2. Torfinn Harding & Jørn Rattsø, 2005. "The barrier model of productivity growth: South Africa," Discussion Papers 425, Statistics Norway, Research Department.
    3. Susan M. Collins & Barry P. Bosworth, 1996. "Economic Growth in East Asia: Accumulation versus Assimilation," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 27(2), pages 135-204.
    4. repec:wbk:wbpubs:8151 is not listed on IDEAS
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    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. Barrios, Candelaria & Flores, Esther & Martínez, M. Ángeles, 2019. "Convergence Clubs in Latin America," MPRA Paper 123434, University Library of Munich, Germany.
    4. Fulvio Castellacci, 2011. "Closing the Technology Gap?," Review of Development Economics, Wiley Blackwell, vol. 15(1), pages 180-197, February.
    5. Mthanti, Thanti & Ojah, Kalu, 2017. "Institutions, Human Capital and Entrepreneurial Orientation (EO): Implications for Growth Strategy," MPRA Paper 89551, University Library of Munich, Germany.
    6. 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.
    7. 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.
    8. Bekhet, Hussain Ali & Latif, Nurul Wahilah Abdul, 2018. "The impact of technological innovation and governance institution quality on Malaysia's sustainable growth: Evidence from a dynamic relationship," Technology in Society, Elsevier, vol. 54(C), pages 27-40.
    9. Sultan Mehmood, 2013. "Access to External Finance and Innovation: A Macroeconomic Perspective," CPB Discussion Paper 218, CPB Netherlands Bureau for Economic Policy Analysis.
    10. Sultan Mehmood, 2013. "Access to External Finance and Innovation: A Macroeconomic Perspective," CPB Discussion Paper 218.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    11. 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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