Affiliation: | (1) Department of Economics and Business, Kalamazoo College, Kalamazoo, MI 49006, USA;(2) Department of Economics, New York University, 269 Mercer Street, 7th floor, New York, NY 10003, USA;(3) Department of Economics, Rice University, 6100 South Main Street, Houston, Texas 77005, USA |
Abstract: | We analyze how technology transfer from a leading economy affects followers productivity growth in manufacturing sectors and Gross Domestic Product. Allowing for heterogeneous technology levels we explore how this impacts rates of catch-up in labor productivity across manufacturing sectors and GDP for 16 OECD nations. Our results indicate that aggregate studies bias downward the estimated rates of catch-up. These rates of catch-up, as well as efficiency levels, also differ across countries. We find that institutional factors such as bureaucratic efficiency are important determinants of the estimated catch-up rates.First version received:October 2001/Final version received:September 2003Earlier versions of this paper have been presented under the titles of Cross-Country Catch-up in Manufacturing and Heterogeneous Rates of Catch-up in Manufacturing Industries. The authors would like to thank participants of the North American Productivity Conference, June 2000, at Union College, N, Y., and the Associate Editor for helpful comments and criticisms. |