IDEAS home Printed from https://ideas.repec.org/p/wiw/wiwrsa/ersa11p1677.html
   My bibliography  Save this paper

Technical progress effects on productivity and growth in the Commonwealth of Nations (1993-2009)

Author

Listed:
  • Fernando Barreiro-Pereira

    ()

Abstract

ABSTRACT. The productivity generated by capital goods is not uniform along the time. When there exist conventional physical capital goods the productivity obtained is minor that the one generated by quality capital goods. To obtain a correct measure of growth in presence of this embodied technical progress there exist three schools: first, the traditional growth accounting school appears due to limitations existing in the measures in efficiency units of the quality of the real investment, because of the investment is not really comparable along the time. The analysis is based in to adjust the quality or productivity of the investment goods constructing hedonic prices indices. This school is represented among others by Hulten (1992), Jovanovic and Nyarko (1996), Bartelsman and Dhrymes (1998), and Gordon (1999). The second school analyzes the productivity using longitudinal micro-level data sets. The most important contributions of this school are Griliches and Ringstad (1971), Olley and Pakes (1996), Caves (1998), McGuckin and Stiroh (1999), and Tybout (2000). The third school is the equilibrium growth accounting school, which measures the balance growth by means of vintage capital models, being represented by Greenwood, Hercowitz and Krusell (1997), Campbell (1998), Hobijn (2000), and Comin (2002). The main aim of this paper is to analyze which are the effects of the two form of technical progress, neutral and directly embodied while capital is accumulated, on the economic growth and the labour productivity. The application has been made to compare the responsibility of the embodied technical progress on the economic growth and productivity during the period (1993-2009) in the most representative economies of the Commonwealth of Nations. The vintage capital model has been made taking quarterly and annual data to each country, coming from the OECD Statistics. We use multivariate time series and cointegration techniques, in special autoregressive integrated moving average and vector autoregressive models (VAR), and autoregressive distributed lags models (ARDL). Keywords: Endogenous technical progress, Vintage capital, Investment-specific technological change. JEL Class: O47, O57.

Suggested Citation

  • Fernando Barreiro-Pereira, 2011. "Technical progress effects on productivity and growth in the Commonwealth of Nations (1993-2009)," ERSA conference papers ersa11p1677, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa11p1677
    as

    Download full text from publisher

    File URL: http://www-sre.wu.ac.at/ersa/ersaconfs/ersa11/e110830aFinal01677.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Jorgenson, Dale W., 1966. "The Embodiment Hypothesis," Scholarly Articles 3403063, Harvard University Department of Economics.
    2. Greenwood, Jeremy & Hercowitz, Zvi & Krusell, Per, 1997. "Long-Run Implications of Investment-Specific Technological Change," American Economic Review, American Economic Association, vol. 87(3), pages 342-362, June.
    3. Claudio Michelacci & David Lopez-Salido, 2007. "Technology Shocks and Job Flows," Review of Economic Studies, Oxford University Press, vol. 74(4), pages 1195-1227.
    4. Giovanni Amendola & Giovanni Dosi & Erasmo Papagni, 1993. "The dynamics of international competitiveness," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 129(3), pages 451-471, September.
    Full references (including those not matched with items on IDEAS)

    More about this item

    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
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa11p1677. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gunther Maier). General contact details of provider: http://www.ersa.org .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.