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Does structure influence growth? A panel data econometric assessment of "relatively less developed" countries, 1979--2003

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  • Ester G. Silva
  • Aurora A. C. Teixeira

Abstract

Neo-Schumpeterian streams of research emphasize the close relationship between changes in economic structure in favor of high-skill and high-tech branches and rapid economic growth. They identify the emergence of a new technological paradigm in the 1970s, strongly based on the application of information and communication technologies (ICTs), arguing that in such periods of transition and emergence of new techno-economic paradigms, the intermediate development countries and the countries which are not at the technological frontier have higher opportunities to catch-up. Although this debate is theoretically well documented, the empirics seem to lag behind the theory. In this article, we contribute to this literature by adding enlightening evidence on the issue. More precisely, we relate the growth experiences of countries which had relatively similar economic structures in the late 1970s, with changes occurring in these countries' structures between 1979 and 2003. The results reveal a robust relationship between structure and (labor) productivity growth, and lend support to the view that producing (though not user) ICT-related industries are strategic branches of economic activity. Copyright 2011 The Author 2011. Published by Oxford University Press on behalf of Associazione ICC. All rights reserved., Oxford University Press.

Suggested Citation

  • Ester G. Silva & Aurora A. C. Teixeira, 2011. "Does structure influence growth? A panel data econometric assessment of "relatively less developed" countries, 1979--2003," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 20(2), pages 457-510, April.
    • Handle: RePEc:oup:indcch:v:20:y:2011:i:2:p:457-510
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    File URL: http://hdl.handle.net/10.1093/icc/dtr003
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    Cited by:

    1. Francisco Rebelo & Ester Gomes da Silva, 2013. "Export variety, technological content and economic performance: The case of Portugal," Papers in Evolutionary Economic Geography (PEEG) 1310, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jun 2013.
    2. Marta C. N. Simões & Adelaide Duarte & João Sousa Andrade, 2019. "Human capital and productivity growth in a services economy: Some insights from the Portuguese case," International Economics and Economic Policy, Springer, vol. 16(3), pages 511-534, July.
    3. Edgar Ortiz & Miriam Sosa & Héctor Díaz, 2015. "Educational Levels and the Impact of ICT on Economic Growth: Evidence of a Cointegrated Panel," International Journal of Business and Social Research, LAR Center Press, vol. 5(9), pages 15-30, September.
    4. Lilian Santos & Aurora A.C. Teixeira, 2013. "Determinants of innovation performance of Portuguese companies: an econometric analysis by type of innovation and sector with a particular focus on Services," FEP Working Papers 494, Universidade do Porto, Faculdade de Economia do Porto.
    5. Edgar Ortiz & Miriam Sosa & Héctor Díaz, 2015. "Educational Levels and the Impact of ICT on Economic Growth: Evidence of a Cointegrated Panel," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 5(9), pages 15-30, September.
    6. Maciej Grodzicki, 2013. "Productivity Convergence in Manufacturing in the European Union: The Role of Economic Structure," Research in Economics and Business: Central and Eastern Europe, Tallinn School of Economics and Business Administration, Tallinn University of Technology, vol. 5(2).
    7. Naveed, Amjad & Wang, Cong, 2023. "Innovation and labour productivity growth moderated by structural change: Analysis in a global perspective," Technovation, Elsevier, vol. 119(C).
    8. Pedrosa Silva Duarte Maria Adelaide & Nunes Simões Marta Cristina, 2014. "Tertiarization and Human Capital: Do They Matter for Growth? Insights From Portugal," Scientific Annals of Economics and Business, Sciendo, vol. 61(1), pages 1-24, July.
    9. Junwei Shi & Haiyan Fu, 2017. "Has The Industrial Structure Of Western Provinces In China Been Differential? Evidence From The Sip Framework," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 62(04), pages 905-928, September.
    10. Díaz Rodríguez, Héctor Eduardo & Aroche Reyes, Fidel, 2020. "Determinants of labour productivity in Mexico: an approach from the endogenous growth theory using artificial neural networks," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    11. Teixeira, Aurora A.C. & Fortuna, Natércia, 2010. "Human capital, R&D, trade, and long-run productivity. Testing the technological absorption hypothesis for the Portuguese economy, 1960-2001," Research Policy, Elsevier, vol. 39(3), pages 335-350, April.
    12. Tânia Pinto & Aurora Teixeira, 2023. "Does scientific research output matter for Portugal’s economic growth?," GEE Papers 0174, Gabinete de Estratégia e Estudos, Ministério da Economia, revised Jul 2023.
    13. Raúl Vázquez López, 2016. "Do Technology-Intensive Activities Drive Industrial Labor Productivity Levels?," Ensayos Revista de Economia, Universidad Autonoma de Nuevo Leon, Facultad de Economia, vol. 0(2), pages 123-150, November.
    14. Santos-Arteaga, Francisco J. & Di Caprio, Debora & Tavana, Madjid & O’Connor, Aidan, 2017. "Innovation dynamics and labor force restructuring with asymmetrically developed national innovation systems," International Business Review, Elsevier, vol. 26(1), pages 36-56.
    15. Dobrescu, Emilian, 2011. "Sectoral Structure and Economic Growth," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(3), pages 5-36, September.
    16. Teixeira, Aurora A.C. & Queirós, Anabela S.S., 2016. "Economic growth, human capital and structural change: A dynamic panel data analysis," Research Policy, Elsevier, vol. 45(8), pages 1636-1648.
    17. Marta C. N. Simões & Adelaide Duarte, 2013. "Human Capital and Growth in a Services Economy: the Case of Portugal," GEMF Working Papers 2013-21, GEMF, Faculty of Economics, University of Coimbra.
    18. Imen Daoud Naanaa & Fethi Sellaouti, 2017. "Technological Diffusion and Growth: Case of the Tunisian Manufacturing Sector," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 8(1), pages 369-383, March.
    19. Tânia Pinto & Aurora A. C. Teixeira, 2020. "The impact of research output on economic growth by fields of science: a dynamic panel data analysis, 1980–2016," Scientometrics, Springer;Akadémiai Kiadó, vol. 123(2), pages 945-978, May.
    20. Christian Omobhude & Shih-Hsin Chen, 2019. "Social Innovation for Sustainability: The Case of Oil Producing Communities in the Niger Delta region," Sustainability, MDPI, vol. 11(23), pages 1-26, November.
    21. Anabela Queirós & Aurora A.C. Teixeira, 2014. "Economic growth, human capital and structural change: an empirical analysis," FEP Working Papers 549, Universidade do Porto, Faculdade de Economia do Porto.

    More about this item

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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