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    Productivity growth and catching up: a technology gap explanation

    Filippetti, Andrea and Peyrache, A. (2017) Productivity growth and catching up: a technology gap explanation. International Review of Applied Economics 31 (3), pp. 283-303. ISSN 0269-2171.

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    Abstract

    This paper seeks to explain why some countries have managed to catch up in terms of labor productivity over the period 1993–2007 in 76 countries. By integrating the technology gap research within the standard growth-accounting approach, we introduce a methodology which allows us to split total factor productivity (TFP) change into two components: conditional technical inefficiency and the magnitude of the technology gap. We find that labor productivity growth depends both on investment in fixed capital and TFP. Fast emerging economies exhibit patterns of growth based in particular on the reduction of the technology gap, confirming the role of investment in technological capabilities to spur productivity catch-up. Looking at change in the distribution of labor productivity, emerging countries managed to shift from low productivity toward a medium level of productivity thanks to technology accumulation. Less advanced countries cannot rely only on technology diffusion and learning by doing, policies for technological capabilities accumulation are necessary.

    Metadata

    Item Type: Article
    Keyword(s) / Subject(s): Labour productivity, technological frontier, technology gap, emerging economies, innovation
    School: Birkbeck Schools and Departments > School of Business, Economics & Informatics > Management
    Depositing User: Administrator
    Date Deposited: 08 Mar 2017 16:59
    Last Modified: 03 Nov 2017 09:58
    URI: http://eprints.bbk.ac.uk/id/eprint/17731

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