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Using the Manufacturing Productivity Distribution to Evaluate Growth Theories

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  • Jens J. Krüger

    (University of Jena, Faculty of Economics)

Abstract

Some multi-sector endogenous growth models make strong predictions about productivity differences across sectors in the form of a distribution or density function. In this paper it is demonstrated that this distribution is left-skewed for a wide range of plausible parameter values. This stands in strong contrast to the right-skewed shape of the respective empirical distribution estimated by kernel methods for a measure of relative productivity for more than 450 four-digit U.S. manufacturing industries during 1958-96. This difference is interpreted as evidence in favor of devoting more emphasis on the effects of structural change on the sectoral level in growth models.

Suggested Citation

  • Jens J. Krüger, 2004. "Using the Manufacturing Productivity Distribution to Evaluate Growth Theories," Jenaer Schriften zur Wirtschaftswissenschaft (Expired!) 16/2004, Friedrich-Schiller-Universität Jena, Wirtschaftswissenschaftliche Fakultät.
    • Handle: RePEc:jen:jenasw:2004-16
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    More about this item

    Keywords

    multisector growth models; manufacturing productivity distribution; skewness;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; 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
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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