Implementation of technological breakthroughs at sector level and the technology-bias

Stijepic, Denis and Wagner, Helmut (2011): Implementation of technological breakthroughs at sector level and the technology-bias.

Abstract

Different goods are produced by different sectors in an economy. The fact that sectors use different production technologies is named technology-bias. The technology-bias is well documented and has important theoretical implications for economic growth and unemployment. We provide a theoretical model that explains the technology-bias and its development. We provide empirical evidence on the development of the technology-bias and explain this development by using our model-results. Last not least, we discuss the implications of our findings for the existing growth literature and structural change literature.

• Item Type: MPRA Paper
• Language: English
• Keywords: sector technology, implementation of technological progress, structural change, growth, multi-sector growth models
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O41 - One, Two, and Multisector Growth Models; O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O39 - Other; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O14 - Industrialization ; Manufacturing and Service Industries ; Choice of Technology

References

Acemoglu, D. (2003). “Labor- and Capital-Augmenting Technical Change”, Journal of the European Economic Association, 1(1): 1-37.

Acemoglu, D. (2009). “Introduction to Modern Economic Growth”, Princeton: Princeton University Press.

Acemoglu, D., and Guerrieri, V. (2006). “Capital Deepening and Nonbalanced Economic Growth.” Working Paper no. 12475, NBER, Cambridge, MA.

Acemoglu, D., Guerrieri, V. (2008). “Capital Deepening and Non-Balanced Economic Growth”, Journal of Political Economy, 116(3): 467-498.

Bah, E.M. (2007). “A Three-Sector Model of Structural Transformation and Economic Development”, MPRA Paper No. 10654.

Barro, R.J., Sala-i-Martin, X. (2004). “Economic Growth”, 2nd edition, Cambridge, Mass.: MIT Press.

Baumol, W.J. (1967). “Macroeconomics of Unbalanced Growth: The Anatomy of Urban Crisis”, American Economic Review, 57(3): 415-426.

Baumol, W.J., Batey Blackman, S.A., Wolf, E.N. (1985). “Unbalanced Growth Revisited: Asymptotic Stagnancy and New Evidence”, American Economic Review, 57(3): 415-426.

Buera, F.J., Kaboski, J.P. (2009). “Can Traditional Theories of Structural Change Fit the Data?”, Journal of the European Economic Association, 7(2-3): 469-477.

Echevarria, C. (1997). “Changes in Sectoral Composition Associated with Economic Growth”, International Economic Review, 38: 431–452.

Echevarria, C. (2000). “Non-homothetic Preferences and Growth”, Journal of International Trade and Economic Development, 9(2): 151-171.

Foellmi, R., Zweimueller, J. (2008). “Structural change, Engel's consumption cycles and Kaldor's Facts of Economic Growth”, Journal of Monetary Economics, 55(7): 1317-1328.

Gollin, D., Parente, S., Rogerson, R. (2002). “The Role of Agriculture in Development”, AEA Papers and Proceedings, 92(2): 160-164.

Gollin, D., Parente, S.L., Rogerson, R. (2007). “The Food Problem and the Evolution of International Income Levels”, Journal of Monetary Economics, 54: 1230–1255.

Greenwood, J., Uysal, G. (2005). “New Goods and the Transition to a New Economy”, Journal of Economic Growth, 10: 99–134.

Jensen, B.S., Larsen, M.E. (2004). “General Equilibrium Dynamics of Multi-Sector Growth Models“, Journal of Economics, Suppl. 10: 17-56.

Klevorick, A.K., Levin, R.C., Nelson, R.R., Winter, S.G. (1995). “On the Sources and Significance of Interindustry Differences in Technological Opportunities”, Research Policy 24: 185-205.

Kongsamut, P., Rebelo, S., Xie, D. (1997). „Beyond Balanced Growth“, NBER Working Paper, 6159.

Kongsamut, P., Rebelo, S., Xie, D. (2001). „Beyond Balanced Growth”, Review of Economic Studies, 68(4): 869-882.

Krueger, J.J. (2008). “Productivity and Structural Change: A Review of the Literature.”, Journal of Economic Surveys, 22(2): 330-363.

Meckl, J. (2002). “Structural Change and Generalized Balanced Growth”, Journal of Economics, 77(3): 241-266.

Ngai, R.L., Pissarides, C.A. (2007). “Structural Change in a Multisector Model of Growth”, American Economic Review, 97(1): 429-443.

Ngai, R.L., Samaniego, R.M. (2011). “Accounting for research and productivity growth across industries.”, Review of Economic Dynamics, 14: 475-495.

Nordhaus, W.D. (2008). “Baumol's Diseases: A Macroeconomic Perspective”, The B.E. Journal of Macroeconomics, Vol. 8(1) (Contributions), Article 9.

Pavitt, K. (1985). “Sectoral Patterns of Technical Change: Towards a Taxonomy and a Theory”, Research Policy, 13: 343-373.

Valentinyi, A., Herrendorf, B. (2008). “Measuring factor income shares at the sectoral level”, Review of Economic Dynamics, 11(4): 820-835.

Wolfe, M. (1955). “The concept of economic sectors”, Quarterly Journal of Economics, 69(3): 402–420.

Zuleta, H., Young, A.T. (2007). “Labor’s Shares – Aggregate and Industry: Accounting for Both in a Model of Unbalanced Growth with Induced Innovation”, University of Rosario Working Paper (Economics), No. 10-2007.