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The Effects of Biased Technological Change on Total Factor Productivity. Empirical Evidence from a Sample of OECD Countries

  • Cristiano Antonelli

    (Department of Economics, University of Turin - University of Turin)

  • Francesco Quatraro


    (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis - CNRS - Centre National de la Recherche Scientifique)

Technological change is far from neutral. The empirical analysis of the rate and direction of technological change in a significant sample of 12 major OECD countries in the years 1970-2003 confirms the strong bias of new technologies. The paper implements a novel methodology to identify and disentangle the effects of the direction of technological change upon total factor productivity (TFP) and shows how the introduction of new and biased technologies affects the actual levels of TFP according to the relative local endowments. The empirical evidence confirms that the introduction of biased technologies enhances TFP when its direction matches the characteristics of local factor markets so that locally abundant inputs become more productive. When the direction of technological change favours the intensive use of production factors that are locally scarce, the actual increase of TFP is reduced.

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Paper provided by HAL in its series Post-Print with number halshs-00727618.

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Date of creation: 2010
Date of revision:
Publication status: Published in Journal of Technology Transfer, Springer Verlag, 2010, 35, pp.361-383
Handle: RePEc:hal:journl:halshs-00727618
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