Scoppa, Vincenzo (2009): Technological Catch-up or Neoclassical Convergence? Identifying the Channels of Convergence for Italian Regions.
Download (174Kb) | Preview
We investigate whether Italian regions have converged in terms of output per worker because of physical capital accumulation, human capital accumulation or thanks to technological catch-up. In order to identify channels of convergence we adopt the methodology recently proposed by Wong (2007) and Feyrer (2007) which combine growth accounting with convergence regressions. Merging two datasets of regional economic accounts (ISTAT and CRENoS) to obtain longer time series, we show that convergence has been realized mainly thanks to technological catch-up and, to some extent, through human capital accumulation. On the other hand, physical capital has been a factor of divergence. These results are robust to model specifications, sets of data and alternative assumptions on parameters value.
|Item Type:||MPRA Paper|
|Original Title:||Technological Catch-up or Neoclassical Convergence? Identifying the Channels of Convergence for Italian Regions|
|English Title:||Technological Catch-up or Neoclassical Convergence?Identifying the Channels of Convergence for Italian Regions|
|Keywords:||Absolute and Conditional Convergence; Channels of Convergence Technological Catch-up; Capital Accumulation; Italian regions|
|Subjects:||O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
E - Macroeconomics and Monetary Economics > E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment > E23 - Production
E - Macroeconomics and Monetary Economics > E1 - General Aggregative Models > E13 - Neoclassical
|Depositing User:||VINCENZO SCOPPA|
|Date Deposited:||29. Jan 2009 05:10|
|Last Modified:||16. Feb 2013 00:47|
Acemoglu, D., Johnson, and Robinson (2002), “Reversal of Fortune: Geography and Institutions in the Making of the Modern World Income Distribution”, Quarterly Journal of Economics, November, pp. 1231-1294.
Aiello, F. and Scoppa, V. (2000), Uneven Regional Development in Italy: Explaining Differences in Productivity Levels, Giornale degli Economisti e Annali di Economia, 60, 2, 270-98.
Barro, R. and Sala-i-Martin, X., (1992), “Convergence,” Journal of Political Economy, April, 100, 2, pp. 223–251.
Barro, R. and Sala-i-Martin, X., (1995), Economic Growth, McGraw-Hill, New York.
Bernanke, B. and Gurkaynak, R., (2001) “Is Growth Exogenous? Taking Mankiw-Romer-Weil seriously”, NBER Working Paper no. 8365.
Bernard, A. and Jones, C. (1996), “Technology and Convergence”, Economic Journal, 107, 1037-44.
Bils, M. and Klenow, P., (2000), “Does Schooling Cause Growth?”, American Economic Review, December, 90, 1160-83.
Bonaglia F. and Picci L. (2000), “Lo stock di capitale nelle regioni italiane”, Working paper n. 374, DSE, Università di Bologna.
Brunello, G. and Miniaci, R. (1999), “The Economic Returns to Schooling for Italian Men: An Evaluation based on Instrumental Variables”, Labour Economics, 509-19.
Caselli, F. (2005) “Accounting for Cross-Country Income Differences”, forthcoming in P. Aghion and S. Durlauf (eds.) The Handbook of Economic Growth, North Holland, Amsterdam: 2005.
Ciccone, A., (2004), Human Capital as a Factor of Growth and Employment at the Regional Level: The Case of Italy, mimeo.
Ciccone, A., Cingano, F., and Cipollone, P. (2004) The Private and Social Return to Schooling in Italy, Giornale degli Economisti e Annali di Economia, 63, 227-247.
CRENoS (2000), “REGIO-IT 1960-96. Data-base on Italian regions”, Cagliari.
Di Liberto, A., Pigliaru, F. and Mura, R., (2008), “How to measure the unobservable: A panel technique for the analysis of TFP Convergence”, Oxford Economic Papers, 60, pp. 343-368.
Dougherty, C. and Jorgenson, D. (1996), “International Comparison of Sources of Growth”, American Economic Review 86, 25–29.
Dowrick S. and Rogers M. (2002), “Classical and Technological Convergence: Beyond the Solow-Swan Growth Model”, Oxford Economic Papers, 54, 369-385.
Dowrick, S. and Nguyen, D. (1989), “OECD Comparative Economic Growth1950–85: Catch-Up and Convergence”, American Economic Review, 79, 1010–30.
Feyrer, J., (2007), “Demographics and Productivity”, Review of Economics and Statistics, 89, 1, pp. 100-109.
Golden M., and Picci L., (2005), “Proposal for a New Measure of Corruption. Illustrated with Italian Data”, Economics and Politics, March, 17 (1), 37-75.
Gollin, D. (2002) Getting Income Shares Right, Journal of Political Economy, 110(2), 458-74.
Hall, R. and Jones, C. (1999) Why do Some Countries Produce So Much More Output per Worker than Others?, Quarterly Journal of Economics, 114, 83-116.
ISTAT (2005), Regional Economic Accounts (Conti Economici Regionali: 1980-2004), Roma.
ISTAT (2007), “Investments and Capital Stocks: 1970-2005”, Roma.
ISTAT (2008), Regional Economic Accounts (Conti Economici Regionali: 2000-2007), Roma.
Klenow, P. and Rodriguez-Clare, A. (1997), “The Neoclassical Revival in Growth Economics: Has It Gone Too Far?”, NBER Macroeconomics Annual, 12, 73-103.
Maffezzoli, M. (2006), “Convergence Across Italian Regions and the Role of Technological Catch-Up”, B.E. Journal in Macroeconomics – Topics,6, 1, Article 15.
Mankiw, G., Romer, D. and Weil, D. (1992), “A Contribution to the Empirics of Growth”, Quarterly Journal of Economics, 107, 408-37.
Paci, R., Pusceddu, (2000), “Una stima dello stock di capitale per le regioni Italiane: 1970-1994”, Rassegna Economica - Quaderni di Ricerca,
Pritchett, L., (2000), “The Tyranny of Concepts: CUDIE (Cumulated, Depreciated, Investment Effort) Is Not Capital”, Journal of Economic Growth, 5, 361-84.
Psacharopoulos, G. (1994), “Returns to Investment in Education: a Global Update”, World Development, 22, 1325-43.
Scoppa, V., (2007), “Quality of Human and Physical Capital and Technological Gaps across Italian Regions”, Regional Studies, 41, 5, pp. 585-599.
Solow, R., (1957), “Technical Change and the Aggregate Production Function”, Review of Economics and Statistics, 39, pp. 312–320.
Wolf, E., (1991), “Capital Formation and Productivity Convergence”, American Economic Review, 81, pp. 565-579.
Wong W. (2007), “Economic Growth: A Channel Decomposition Exercise,” The B.E. Journal of Macroeconomics: Vol. 7: Iss. 1 (Topics), Article 4.
Young, A. (1995) The Tyranny of Numbers. Confronting the Statistical Realities of the East Asian Growth Experience, Quarterly Journal of Economics, 110, 641-80.