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A Growth Theory and Competitiveness Gains Measure Linkage

Author

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  • González, Germán

Abstract

This work provides a macroeconomic approach and a sound conceptual foundation for the notion of "competitiveness gains", so prone to multiple interpretations, and to make it fit for empirical analyses. Instead of "competitiveness" is "competitiveness gains" the relevant concept, defined as a situation where the economy experiences a higher growth rate of TFP than its competitors. We present a theoretical model of competitiveness that provides a rationale for the variations of competitiveness,associated to the behavior of related variables; then we carry out an empirical exercise which shows that our formalization supports a measurable approximation to competitiveness gains.

Suggested Citation

  • González, Germán, 2006. "A Growth Theory and Competitiveness Gains Measure Linkage," MPRA Paper 143, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:143
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    File URL: https://mpra.ub.uni-muenchen.de/143/1/MPRA_paper_143.pdf
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    References listed on IDEAS

    as
    1. King, Robert G. & Levine, Ross, 1994. "Capital fundamentalism, economic development, and economic growth," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 40(1), pages 259-292, June.
    2. Barro, Robert J, 1999. "Notes on Growth Accounting," Journal of Economic Growth, Springer, vol. 4(2), pages 119-137, June.
    3. H. Ahmed & S. M. Miller, 2002. "The level of development and the determinants of productivity growth: a cross-country analysis," Applied Economics, Taylor & Francis Journals, vol. 34(9), pages 1089-1095.
    4. Julian Reiss, 2001. "Natural economic quantities and their measurement," Journal of Economic Methodology, Taylor & Francis Journals, vol. 8(2), pages 287-311.
    5. Charles R. Hulten, 2000. "Total Factor Productivity: A Short Biography," NBER Working Papers 7471, National Bureau of Economic Research, Inc.
    6. Harberger, Arnold C, 1998. "A Vision of the Growth Process," American Economic Review, American Economic Association, vol. 88(1), pages 1-32, March.
    7. Habib Ahmed & Stephen M. Miller, 1999. "The Level of Development and the Determinants of Productivity Growth," Working papers 1999-03, University of Connecticut, Department of Economics.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    competitiveness; competitiveness gains measure; total factor productivity; trade and growth;

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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