IDEAS home Printed from https://ideas.repec.org/p/cea/doctra/e2008_15.html
   My bibliography  Save this paper

Technological sources of productivity growth in Japan, the Us and Germany: What makes the difference?

Author

Listed:
  • Jesús Rodríguez

    () (Universidad Pablo de Olavide)

  • José L.Torres

    (Universidad de Málaga)

Abstract

This paper studies the contribution of Information and Communication Technologies (ICT) on economic growth and labor productivity across the three leading economies in the world: Japan, Germany and the US. We use a dynamic general equilibrium growth model with investment-specific technological change to quantify the contribution to productivity growth in the three countries from different technological progress. We find that contribution to productivity growth due to ICT capital assets is about 0.40 percentage points for Japan and Germany, whereas it is about 0.65 percentage points in the case of the US. Neutral technological change is the main source of productivity growth in Japan and Germany. For the US, the main source of productivity growth derives from investment-specific technological change, mainly associated to ICT.

Suggested Citation

  • Jesús Rodríguez & José L.Torres, 2008. "Technological sources of productivity growth in Japan, the Us and Germany: What makes the difference?," Economic Working Papers at Centro de Estudios Andaluces E2008/15, Centro de Estudios Andaluces.
  • Handle: RePEc:cea:doctra:e2008_15
    as

    Download full text from publisher

    File URL: http://www.centrodeestudiosandaluces.info/PDFS/E200815.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Per Krusell & Lee E. Ohanian & JosÈ-Victor RÌos-Rull & Giovanni L. Violante, 2000. "Capital-Skill Complementarity and Inequality: A Macroeconomic Analysis," Econometrica, Econometric Society, vol. 68(5), pages 1029-1054, September.
    2. Andreas Hornstein & Per Krusell, 1996. "Can Technology Improvements Cause Productivity Slowdowns?," NBER Chapters,in: NBER Macroeconomics Annual 1996, Volume 11, pages 209-276 National Bureau of Economic Research, Inc.
    3. Daron Acemoglu, 2003. "Cross-Country Inequality Trends," Economic Journal, Royal Economic Society, vol. 113(485), pages 121-149, February.
    4. Linnea Polgreen & Pedro Silos, 2008. "Capital-Skill Complementarity and Inequality: A Sensitivity Analysis," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 11(2), pages 302-313, April.
    5. Dale W. Jorgenson & Kevin J. Stiroh, 2000. "Raising the Speed Limit: U.S. Economic Growth in the Information Age," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 31(1), pages 125-236.
    6. Eli Berman & John Bound & Zvi Griliches, 1994. "Changes in the Demand for Skilled Labor within U. S. Manufacturing: Evidence from the Annual Survey of Manufactures," The Quarterly Journal of Economics, Oxford University Press, vol. 109(2), pages 367-397.
    7. Pakko Michael R., 2005. "Changing Technology Trends, Transition Dynamics, and Growth Accounting," The B.E. Journal of Macroeconomics, De Gruyter, vol. 5(1), pages 1-42, December.
    8. repec:lsu:lsuwpp:2003-12 is not listed on IDEAS
    9. Michael R. Pakko, 2002. "What Happens When the Technology Growth Trend Changes?: Transition Dynamics, Capital Growth and the 'New Economy'," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 5(2), pages 376-407, April.
    10. Daron Acemoglu, 2002. "Technical Change, Inequality, and the Labor Market," Journal of Economic Literature, American Economic Association, pages 7-72.
    11. Marcel P. Timmer & Mary O’Mahony & Bart van Ark, 2007. "EU KLEMS Growth and Productivity Accounts: An Overview," International Productivity Monitor, Centre for the Study of Living Standards, vol. 14, pages 71-85, Spring.
    12. John Duffy & Chris Papageorgiou & Fidel Perez-Sebastian, 2004. "Capital-Skill Complementarity? Evidence from a Panel of Countries," The Review of Economics and Statistics, MIT Press, vol. 86(1), pages 327-344, February.
    13. Martínez, Diego & Rodríguez, Jesús & Torres, José L., 2008. "The productivity paradox and the new economy: The Spanish case," Journal of Macroeconomics, Elsevier, vol. 30(4), pages 1569-1586, December.
    14. Greenwood, Jeremy & Hercowitz, Zvi & Krusell, Per, 1997. "Long-Run Implications of Investment-Specific Technological Change," American Economic Review, American Economic Association, pages 342-362.
    15. Stephen Machin & John Van Reenen, 1998. "Technology and Changes in Skill Structure: Evidence from Seven OECD Countries," The Quarterly Journal of Economics, Oxford University Press, vol. 113(4), pages 1215-1244.
    16. Claudia Goldin & Lawrence F. Katz, 1998. "The Origins of Technology-Skill Complementarity," The Quarterly Journal of Economics, Oxford University Press, vol. 113(3), pages 693-732.
    17. Kevin J. Stiroh, 2002. "Information Technology and the U.S. Productivity Revival: What Do the Industry Data Say?," American Economic Review, American Economic Association, pages 1559-1576.
    18. Quesada Ibáñez Javier & Mas Ivars Matilde, 2006. "The Role of ICT in the Spanish Productivity Slowdown," Working Papers 201035, Fundacion BBVA / BBVA Foundation.
    19. O'Mahony, Mary & Robinson, Catherine & Vecchi, Michela, 2008. "The impact of ICT on the demand for skilled labour: A cross-country comparison," Labour Economics, Elsevier, vol. 15(6), pages 1435-1450, December.
    20. Mas Ivars Matilde & Uriel Jiménez Ezequiel & Pérez García Francisco, 2005. "El stock y los servicios del capital en España (1964-2002). Nueva metodología," Books, Fundacion BBVA / BBVA Foundation, edition 0, number 201147.
    21. Richard B. Freeman & Lawrence F. Katz, 1995. "Differences and Changes in Wage Structures," NBER Books, National Bureau of Economic Research, Inc, number free95-1, January.
    22. Timmer, Marcel P. & Ypma, Gerard & Ark, Bart van der, 2003. "IT in the European Union: driving productivity divergence?," GGDC Research Memorandum 200363, Groningen Growth and Development Centre, University of Groningen.
    23. Falk, Martin & Koebel, Bertrand M., 2004. "The impact of office machinery, and computer capital on the demand for heterogeneous labour," Labour Economics, Elsevier, vol. 11(1), pages 99-117, February.
    24. Gust, Christopher & Marquez, Jaime, 2004. "International comparisons of productivity growth: the role of information technology and regulatory practices," Labour Economics, Elsevier, vol. 11(1), pages 33-58, February.
    25. Samaniego, Roberto M., 2006. "Organizational capital, technology adoption and the productivity slowdown," Journal of Monetary Economics, Elsevier, vol. 53(7), pages 1555-1569, October.
    26. Chris Papageorgiou & Viera Chmelarova, 2005. "Nonlinearities in Capital–Skill Complementarity," Journal of Economic Growth, Springer, vol. 10(1), pages 55-86, January.
    27. Manuel A. Hidalgo, 2008. "A Demand-Supply Analysis of the Spanish Education Wage Premium in the 1980s and 1990s," Working Papers 08.01, Universidad Pablo de Olavide, Department of Economics.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Productivity growth; Investment-specific technological change; Neutral technological change; Information and communication technology.;

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cea:doctra:e2008_15. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Susana Mérida). General contact details of provider: http://edirc.repec.org/data/fcanges.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.