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Productivity growth and technological change in Europe and the U.S

Author

Listed:
  • Diego Martínez

    (Universidad Pablo de Olavide)

  • Jesús Rodríguez-López

    (Universidad Pablo de Olavide)

  • José L. Torres

    (Universidad de Málaga)

Abstract

This paper presents an evaluation on the technological sources of labor productivity growth across European countries and the US economy for the period 1980-2004. Assets of capital are divided into those related to the information and communication technologies (ICT), and non-ICT assets. Technological progress is divided into neutral change and investment specific change. Previous exercises have aimed at ICT as a serious contributor to the upsurge of US productivity from 1995 on. Contribution to productivity growth from each type of technological progress for the US and EU-15 countries is computed using two different approaches: a growth accounting and a general equilibrium. The US and Denmark are the countries with the larger contribution from ICT-technological progress. Overall, we find that Europe is well behind the US in terms of the effects of ICT technological change.

Suggested Citation

  • Diego Martínez & Jesús Rodríguez-López & José L. Torres, 2008. "Productivity growth and technological change in Europe and the U.S," Working Papers 2008-10, Universidad de Málaga, Department of Economic Theory, Málaga Economic Theory Research Center.
  • Handle: RePEc:mal:wpaper:2008-10
    as

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    File URL: http://webdeptos.uma.es/THEconomica/malagawpseries/Papers/METCwp2008-10.pdf
    File Function: First version, 2008
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Productivity growth; Investment-specific technological change; Neutral technological change;

    JEL classification:

    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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