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.
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First version received:October 2001/Final version received:September 2003
Earlier 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.
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Hultberg, P., Nadiri, M. & Sickles, R. Cross-country catch-up in the manufacturing sector: Impacts of heterogeneity on convergence and technology adoption. Empirical Economics 29, 753–768 (2004). https://doi.org/10.1007/s00181-004-0209-5
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DOI: https://doi.org/10.1007/s00181-004-0209-5