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Technology Diffusion or Capital Accumulation? An Empirical Assessment of Convergence in Manufacturing

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  • Silvia Dal Bianco

    (Department of Economics and Quantitative Methods, University of Pavia)

Abstract

In this paper I consider 28 developed and developing countries, in the period 1980- 1995, and I employ the Within Group and the Generalized Method of Moments estimators to test, respectively, for Total Factor Productivity determinants and labor productivity convergence driving forces (i.e.capital accumulation and technological catch-up) in different manufacturing sectors, identified according the technological content of their production. Moreover, I test for inter-sectoral and cross-country heterogeneity of labor productivity convergence tendencies. My results show that technology growth rate is enhanced by technological transfer, in all manufacturing sectors and countries, and that cross-country convergence is determined by technology diffusion rather than capital accumulation. Further, I find that the rate of technological convergence appears higher in emerging economies, particularly in High Tech sectors. Finally, tertiary education seems to be relatively more important, as absorptive capability, than secondary one.

Suggested Citation

  • Silvia Dal Bianco, 2010. "Technology Diffusion or Capital Accumulation? An Empirical Assessment of Convergence in Manufacturing," Quaderni di Dipartimento 114, University of Pavia, Department of Economics and Quantitative Methods.
  • Handle: RePEc:pav:wpaper:114
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    File URL: http://economia.unipv.it/docs/dipeco/quad/ps/RePEc/pav/wpaper/q114.pdf
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    References listed on IDEAS

    as
    1. Rachel Griffith & Stephen Redding & John Van Reenen, 2004. "Mapping the Two Faces of R&D: Productivity Growth in a Panel of OECD Industries," The Review of Economics and Statistics, MIT Press, vol. 86(4), pages 883-895, November.
    2. Francesco Pigliaru, 2003. "Detecting Technological Catch-Up in Economic Convergence," Metroeconomica, Wiley Blackwell, vol. 54(2-3), pages 161-178, May.
    3. N. Gregory Mankiw & David Romer & David N. Weil, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 107(2), pages 407-437.
    4. Par Hansson & Magnus Henrekson, 1994. "What makes a country socially capable of catching up?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 130(4), pages 760-783, December.
    5. Diewert, W. E., 1976. "Exact and superlative index numbers," Journal of Econometrics, Elsevier, vol. 4(2), pages 115-145, May.
    6. Pack, Howard & Westphal, Larry E., 1986. "Industrial strategy and technological change : Theory versus reality," Journal of Development Economics, Elsevier, vol. 22(1), pages 87-128, June.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Classical and Technological Convergence; Absorption Capabilities; Technological Gap; TFP growth; Manufacturing sectors; Panel data;

    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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