Factor Accumulation Story: Any Unfinished Business?
We construct a new measure of knowledge capital as an aggregate production factor in the sense of Lucas and employ it in a standard growth and variance accounting exercise. We base this new measure on the available data on educational attainment using the empirically confirmed relationship between the level of education and productivity growth. Decomposing the post war growth record we find that most of the growth in income per worker has been explicable in terms of factor accumulation. Overall, the scope for technology residual remained negligible, although there are important differences among various country groups. Unlike the results on growth accounting, explaining the variation in the average growth performance of the individual countries through the variation in the rates of growth of the production factors still leaves a substantial part of the variation unexplained. Yet, this part is significantly smaller than what other studies have ascribed to the variation of the technology residual. Lastly, we also demonstrate how the new measure of knowledge stock may be used to test theoretical predictions regarding the recent convergence experience in the EU periphery. The good fit of the theory can be interpreted as an indication that the theory provides a reasonable candidate explanation for total factor productivity growth.
|Date of creation:||May 2004|
|Contact details of provider:|| Postal: P.O. Box 882, Politickych veznu 7, 111 21 Praha 1|
Phone: (+420) 224 005 123
Fax: (+420) 224 005 333
Web page: http://www.cerge-ei.cz
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Frank Barry & John Bradley & Michal Kejak & David Vavra, 2003. "The Czech economic transition," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 11(3), pages 539-567, 09.
- Robert E. Hall & Charles I. Jones, 1999. "Why do Some Countries Produce So Much More Output Per Worker than Others?," The Quarterly Journal of Economics, Oxford University Press, vol. 114(1), pages 83-116.
- Michal Kejak & Stephan Seiter & David Vavra, 2004.
"Accession Trajectories and Convergence: Endogenous Growth Perspective,"
CERGE-EI Working Papers
wp219, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
- Kejak, Michal & Seiter, Stephan & Vavra, David, 2004. "Accession trajectories and convergence: endogenous growth perspective," Structural Change and Economic Dynamics, Elsevier, vol. 15(1), pages 13-46, March.
- Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
- Alan B. Krueger & Mikael Lindahl, 2000.
"Education for Growth: Why and For Whom?,"
NBER Working Papers
7591, National Bureau of Economic Research, Inc.
- Klenow, Peter J. & Rodriguez-Clare, Andres, 1997. "Economic growth: A review essay," Journal of Monetary Economics, Elsevier, vol. 40(3), pages 597-617, December.
- Robert E. Hall & Charles I. Jones, 1999. "Why Do Some Countries Produce So Much More Output per Worker than Others?," NBER Working Papers 6564, National Bureau of Economic Research, Inc.
- Zilibotti, Fabrizio, 1995.
"A Rostovian model of endogenous growth and underdevelopment traps,"
European Economic Review,
Elsevier, vol. 39(8), pages 1569-1602, October.
- F Zilibotti, 1993. "A Rostovian Model of Endogenous Growth and Underdevelopment Traps," CEP Discussion Papers dp0166, Centre for Economic Performance, LSE.
- Costas Azariadis & Allan Drazen, 1990. "Threshold Externalities in Economic Development," The Quarterly Journal of Economics, Oxford University Press, vol. 105(2), pages 501-526.
- Benhabib, Jess & Spiegel, Mark M., 1994. "The role of human capital in economic development evidence from aggregate cross-country data," Journal of Monetary Economics, Elsevier, vol. 34(2), pages 143-173, October.
- Alwyn Young, 1995. "The Tyranny of Numbers: Confronting the Statistical Realities of the East Asian Growth Experience," The Quarterly Journal of Economics, Oxford University Press, vol. 110(3), pages 641-680.
- Michal Kejak, 2001.
"Stages of Growth in Economic Development,"
Development and Comp Systems
When requesting a correction, please mention this item's handle: RePEc:cer:papers:wp220. 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: (Jana Koudelkova)
If references are entirely missing, you can add them using this form.