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New Productivity Drivers: Revisiting the Role of Digital Capital, FDI and Integration at Aggregate and Sectoral Levels

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  • Amat Adarov

    (The Vienna Institute for International Economic Studies, wiiw)

  • Robert Stehrer

    (The Vienna Institute for International Economic Studies, wiiw)

Abstract

The paper studies the drivers of productivity at country and sectoral levels over the period 2000-2017 with the focus on the impact of capital accumulation and structure. The analysis confirms an especially important role of ICT and intangible digital capital for productivity growth, particularly in the manufacturing sectors. While backward global value chain participation and EU integration are also found to be instrumental for accelerating productivity growth, the impact of inward foreign direct investment is not robustly detected when the data is purged from the effects of special purpose entities and outlier countries.

Suggested Citation

  • Amat Adarov & Robert Stehrer, 2020. "New Productivity Drivers: Revisiting the Role of Digital Capital, FDI and Integration at Aggregate and Sectoral Levels," wiiw Working Papers 178, The Vienna Institute for International Economic Studies, wiiw.
    • Handle: RePEc:wii:wpaper:178
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    7. Amat Adarov & Robert Stehrer, 2021. "Implications of foreign direct investment, capital formation and its structure for global value chains," The World Economy, Wiley Blackwell, vol. 44(11), pages 3246-3299, November.
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    Cited by:

    1. Amat Adarov & Robert Stehrer, 2020. "Capital dynamics, global value chains, competitiveness and barriers to FDI and capital accumulation in the EU," JRC Research Reports JRC121096, Joint Research Centre.
    2. Alejandra Martínez – Martínez & Silviano Esteve – Pérez & Salvador Gil – Pareja & Rafael Llorca - Vivero, 2023. "In search of factors that explain the impact of climate change on international trade," Working Papers 2310, Department of Applied Economics II, Universidad de Valencia.
    3. Belitski, Maksim & Korosteleva, Julia & Piscitello, Lucia, 2023. "Digital affordances and entrepreneurial dynamics: New evidence from European regions," Technovation, Elsevier, vol. 119(C).
    4. Robert Stehrer, 2022. "The Impact of ICT and Intangible Capital Accumulation on Labour Demand Growth and Functional Income Shares," wiiw Working Papers 218, The Vienna Institute for International Economic Studies, wiiw.
    5. Olena Khlystova & Yelena Kalyuzhnova, 2023. "The impact of the creative industries and digitalization on regional resilience and productive entrepreneurship," The Journal of Technology Transfer, Springer, vol. 48(5), pages 1654-1695, October.

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    More about this item

    Keywords

    Productivity; digitalisation; ICT; intangible capital; FDI; capital accumulation; global value chains;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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