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Productivity dynamics and structural change in the US manufacturing sector

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  • Jens J. Krüger

Abstract

The article investigates structural change among the four-digit (SIC) industries of the US manufacturing sector during 1958–1996 and its relation to productivity growth within a distribution dynamics framework. Focus is on the transition density of the Markov process that characterizes the value-added shares of the industries. This transition density is estimated nonparametrically as well as by maximum likelihood, in which case the functional form of the density is motivated by a search theoretic model. The nonparametric fit and the maximum likelihood fit show striking similarities. The relation of structural change to a measure of total factor productivity change is tested by quantile regression and appears to be significantly positive throughout. Copyright 2008 , Oxford University Press.

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  • Jens J. Krüger, 2008. "Productivity dynamics and structural change in the US manufacturing sector," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 17(4), pages 875-902, August.
    • Handle: RePEc:oup:indcch:v:17:y:2008:i:4:p:875-902
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    1. Juan R. Cuadrado-Roura & Andres Maroto-Sanchez, 2011. "Regional productivity growth in European countries. The role of services," ERSA conference papers ersa10p163, European Regional Science Association.
    2. Maroto-Sánchez, Andrés & Cuadrado-Roura, Juan R., 2009. "Is growth of services an obstacle to productivity growth? A comparative analysis," Structural Change and Economic Dynamics, Elsevier, vol. 20(4), pages 254-265, December.

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