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The Sources of Growth in a Technologically Progressive Economy: the United States, 1899-1941

Author

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  • Bakker, Gerben

    (London School of Economics)

  • Crafts, Nicholas

    (University of Warwick)

  • Woltjer, Pieter

    (University of Groningen)

Abstract

We develop new aggregate and sectoral Total Factor Productivity (TFP) estimates for the United States between 1899 and 1941 through better coverage of sectors and better-measured labor quality, and find TFP-growth was lower than previously thought, broadly based across sectors, and strongly variant intertemporally. We then test and reject three prominent claims. First, the 1930s did not have the highest TFP-growth of the twentieth century. Second, TFP-growth was not predominantly caused by four ‘great inventions’. Third, TFP-growth was not driven indirectly by spillovers from great inventions such as electricity. Instead, the creative-destruction-friendly American innovation system was the main productivity driver.

Suggested Citation

  • Bakker, Gerben & Crafts, Nicholas & Woltjer, Pieter, 2017. "The Sources of Growth in a Technologically Progressive Economy: the United States, 1899-1941," CAGE Online Working Paper Series 341, Competitive Advantage in the Global Economy (CAGE).
    • Handle: RePEc:cge:wacage:341
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    References listed on IDEAS

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    Cited by:

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    8. Alexander J. Field, 2023. "The decline of US manufacturing productivity between 1941 and 1948," Economic History Review, Economic History Society, vol. 76(4), pages 1163-1190, November.
    9. John G. Fernald & Robert Inklaar, 2022. "The UK Productivity “Puzzle” in an International Comparative Perspective," Working Paper Series 2022-07, Federal Reserve Bank of San Francisco.
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    More about this item

    Keywords

    productivity growth; total factor productivity; great inventions; spillovers; United States — history JEL Classification: N11; N12; O47; O51.;
    All these keywords.

    JEL classification:

    • N0 - Economic History - - General

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