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Structural Change And The Growth Of Industrial Sectors: Empirical Test Of A Gpt Model

  • Fulvio Castellacci

This paper investigates the empirical relevance of a model of structural change and the growth of industrial sectors. The model analyzes the process of diffusion of general-purpose technologies (GPTs) and how this affects the dynamic performance of manufacturing and service industries. The empirical analysis studies the dynamics and the determinants of labor productivity growth for a large number of sectors in 18 OECD countries over the period 1970-2005. The results of dynamic panel data and cross-sectional analysis provide support for the empirical validity of the model. Industries that are close to the core of ICT-related GPTs are characterized by greater innovative capabilities and have recently experienced a more dynamic performance. Relatedly, countries that have been able to shift their industrial structure toward these high-opportunity manufacturing and service industries have grown more rapidly. Copyright 2010 The Author. Review of Income and Wealth 2010 International Association for Research in Income and Wealth.

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Article provided by International Association for Research in Income and Wealth in its journal Review of Income and Wealth.

Volume (Year): 56 (2010)
Issue (Month): 3 (09)
Pages: 449-482

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Handle: RePEc:bla:revinw:v:56:y:2010:i:3:p:449-482
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  17. Kenneth I. Carlaw & Richard G. Lipsey, 2007. "SUSTAINED GROWTH DRIVEN BY MULTIPLE, CO-EXISTING GPTs," Discussion Papers dp07-17, Department of Economics, Simon Fraser University.
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