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The Conditional Convergence in TFP Levels. On the Relationship between TFP, Processes of Accumulation and Institutions

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  • Vito Pipitone
  • Luciano Seta

Abstract

In this paper, we discuss the relationship between productivity, accumulation and institutions. We start from the idea that accumulation and productivity are connected by complex non-linear relations, which are amplified or attenuated by the system of rules that affects trade, decisions and preferences of economic actors. In order to show these connections, we have built a specific model that helps us shed some light on the ties involving this multi-dimensional relationship, which goes from institutions to the stock of physical and human capital and from this latter to productivity. On these ground, we propose a circular relationship between the existing literature on "barriers" and on "appropriability".

Suggested Citation

  • Vito Pipitone & Luciano Seta, 2012. "The Conditional Convergence in TFP Levels. On the Relationship between TFP, Processes of Accumulation and Institutions," Working Papers - Economics wp2012_09.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    • Handle: RePEc:frz:wpaper:wp2012_09.rdf
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    More about this item

    Keywords

    Growth; Total Factor Productivity; Accumulation Processes; Institutions;
    All these keywords.

    JEL classification:

    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy

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