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Explaining International Productivity Differences

In this paper we add new results to the emerging field of investigating productivity levels rather than productivity change, as initiated by Hall and Jones (1996, 1997). To obtain measures of relative productivity levels we depart from traditional growth accounting and calculate the Malmquist index of total factor productivity change using the nonparametric Data Envelopment Analysis (DEA) for a broad cross country sample. This index can be decomposed in measures of technological progress and efficiency change that are cumulated to level measures. The so obtained heterogeneity in productivity levels is next related to several determinants of technology driven growth in an econometric exercise. Doing this (1) we are able to provide confimation of the validity of the decomposition of the Malmquist index and (2) we find innovation-related explanations for international technological frontier shifts and imitative catching up and falling behind.

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File URL: http://www.wiwi.uni-augsburg.de/vwl/institut/paper/179.pdf
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File URL: http://www.wiwi.uni-augsburg.de/vwl/institut/paper/179.ps
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Paper provided by Universitaet Augsburg, Institute for Economics in its series Discussion Paper Series with number 179.

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Length: pages
Date of creation: Aug 1998
Date of revision:
Handle: RePEc:aug:augsbe:0179
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  1. MacKinnon, James G. & White, Halbert, 1985. "Some heteroskedasticity-consistent covariance matrix estimators with improved finite sample properties," Journal of Econometrics, Elsevier, vol. 29(3), pages 305-325, September.
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  9. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
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  14. Barro, R.J., 1989. "Economic Growth In A Cross Section Of Countries," RCER Working Papers 201, University of Rochester - Center for Economic Research (RCER).
  15. Prescott, Edward C, 1998. "Needed: A Theory of Total Factor Productivity," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(3), pages 525-51, August.
  16. Jens Kaüger & Uwe Cantner & Horst Hanusch, 2000. "Total factor productivity, the east Asian miracle, and the world production frontier," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 136(1), pages 111-136, March.
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  21. repec:cup:cbooks:9780521424592 is not listed on IDEAS
  22. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-38, May.
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  30. N. Gregory Mankiw & David Romer & David N. Weil, 1990. "A Contribution to the Empirics of Economic Growth," NBER Working Papers 3541, National Bureau of Economic Research, Inc.
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