Productivity growth and catching up: a technology gap explanation

Filippetti, Andrea and Peyrache, Antonio (2016) Productivity growth and catching up: a technology gap explanation. International Review of Applied Economics, 1-21. doi:10.1080/02692171.2016.1249831


Author Filippetti, Andrea
Peyrache, Antonio
Title Productivity growth and catching up: a technology gap explanation
Journal name International Review of Applied Economics   Check publisher's open access policy
ISSN 1465-3486
0269-2171
Publication date 2016-11-03
Sub-type Article (original research)
DOI 10.1080/02692171.2016.1249831
Open Access Status Not yet assessed
Start page 1
End page 21
Total pages 21
Place of publication Abingdon, Oxon, United Kingdom
Publisher Routledge
Collection year 2017
Language eng
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.
Keyword Emerging economies
Innovation
Labour productivity
Technological frontier
Technology gap
Q-Index Code C1
Q-Index Status Provisional Code
Institutional Status UQ

Document type: Journal Article
Sub-type: Article (original research)
Collections: HERDC Pre-Audit
School of Economics Publications
 
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