Filippetti, Andrea and Payrache, Antonio (2010): Productivity growth and catch up in Europe: A new perspective on total factor productivity differences.
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This paper investigates the relative contribution of capital deepening and total factor productivity (TFP) as drivers of labour productivity growth and catch up in Europe. Proxies for technological capabilities (technology gap) are introduced which allow to explain differences in TFP. Using a conditional Malmquist nonparametric approach, we find that capital deepening and TFP respectively account for around 53% and 47% of labour productivity growth respectively. Further, change in technological capabilities explains 71% of change in TFP, making a substantial contribution to catch up. Different patterns arise between industrialized and catching-up countries. Our results support the scope for innovation policy, technology diffusion and education policy to explain growth and convergence in labour productivity across Europe.
|Item Type:||MPRA Paper|
|Original Title:||Productivity growth and catch up in Europe: A new perspective on total factor productivity differences|
|English Title:||Productivity growth and catch up in Europe: A new perspective on total factor productivity differences|
|Keywords:||labour productivity growth, technological capabilities, EU policies, Malmquist TFP|
|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
O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development; Intellectual Property Rights > O33 - Technological Change: Choices and Consequences; Diffusion Processes
|Depositing User:||Andrea Filippetti|
|Date Deposited:||04. Dec 2010 23:02|
|Last Modified:||13. Feb 2013 17:44|
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