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The 'appropriate technology' explanation of productivity growth differentials: An empirical approach

  • Los, Bart
  • Timmer, Marcel P.

This paper aims at giving empirical content to the recent Basu & Weil (1998) theory of growth, in which localized innovation and differences in speeds of capital intensification can yield several patterns of international convergence and divergence. Using data envelopment analysis techniques, a decomposition is presented in which labor productivity growth is decomposed into growth due to localized innovation, creating spillover potential through investment and assimilation of knowledge spillovers. Regression analysis shows that convergence in the 1970s and divergence in the 1980s were mainly driven by processes of creating spillover potential, but that the other two factors also had significant impacts.

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Article provided by Elsevier in its journal Journal of Development Economics.

Volume (Year): 77 (2005)
Issue (Month): 2 (August)
Pages: 517-531

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Handle: RePEc:eee:deveco:v:77:y:2005:i:2:p:517-531
Contact details of provider: Web page: http://www.elsevier.com/locate/devec

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  1. Evenson, Robert E. & Westphal, Larry E., 1995. "Technological change and technology strategy," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 37, pages 2209-2299 Elsevier.
  2. Robert J. Barro & Jong-Wha Lee, 2000. "International Data on Educational Attainment Updates and Implications," NBER Working Papers 7911, National Bureau of Economic Research, Inc.
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  15. Clark, Gregory, 1987. "Why Isn't the Whole World Developed? Lessons from the Cotton Mills," The Journal of Economic History, Cambridge University Press, vol. 47(01), pages 141-173, March.
  16. Danny Quah, 1996. "Twin Peaks: Growth and Convergence in Models of Distribution Dynamics," CEP Discussion Papers dp0280, Centre for Economic Performance, LSE.
  17. Fare, Rolf & Shawna Grosskopf & Mary Norris & Zhongyang Zhang, 1994. "Productivity Growth, Technical Progress, and Efficiency Change in Industrialized Countries," American Economic Review, American Economic Association, vol. 84(1), pages 66-83, March.
  18. Abramovitz, Moses, 1986. "Catching Up, Forging Ahead, and Falling Behind," The Journal of Economic History, Cambridge University Press, vol. 46(02), pages 385-406, June.
  19. Atkinson, Anthony B & Stiglitz, Joseph E, 1969. "A New View of Technological Change," Economic Journal, Royal Economic Society, vol. 79(315), pages 573-78, September.
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