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Productivity convergence and economic growth: A frontier production function approach

Listed author(s):
  • Cornwell, Christopher Mark
  • Wächter, Jens-Uwe

The empirical growth literature has focused on capital accumulation but largely ignored productivity growth. To address this imbalance, we propose a methodology for analyzing productivity convergence based on frontier production functions. We examine whether departures from the frontier are cointegrated, determine the extent and speed of catch-up, and assess the importance of efficiency changes for economic growth. Using a sample of 26 OECD countries from 1965-90, we find convergence and catch-up is fairly strong among EU countries but not among the G-7. Overall, the ability to absorb new technology is an important source of economic growth.

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File URL: https://www.econstor.eu/bitstream/10419/39601/1/269376658.pdf
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Paper provided by University of Bonn, ZEI - Center for European Integration Studies in its series ZEI Working Papers with number B 06-1999.

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Date of creation: 1999
Handle: RePEc:zbw:zeiwps:b061999
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