Specialization on a technologically stagnant sector need not be bad for growth

Felbermayr, Gabriel

doi:10.1093/oep/gpm002

Cited by 15 publications

(20 citation statements)

References 26 publications

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“…The result that a country specializing in a low‐growth sector (agriculture in our model) can attain the same growth rate as a country specializing in a high‐growth sector (manufacturing in our model) is also shown in Felbermayr (2007). 9…”

Section: Long‐run Growth Ratessupporting

confidence: 66%

“…However, the reality seems to be different from what the neoclassical growth theory predicts. For example, by using Penn World Table, Acemoglu and Ventura (2002) and Felbermayr (2007) show that the world income distribution has been relatively stable whereas Quah (1996) and Epstein et al (2007) show that the world income distribution has diverged. Thus, empirical evidence on convergence is questionable.…”

Section: Introductionmentioning

confidence: 99%

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Trade, Non-Scale Growth and Uneven Development

Sasaki

2011

Metroeconomica

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This paper investigates the relationship between trade and economic development using a two-country, non-scale growth model. Depending on the share of the expenditure for manufactured goods, we obtain two different results with regard to long-run production patterns. Whether or not the follower country can catch up with the leader country in the long run depends on two factors: (1) the patterns of production in both countries and (2) the measure of economic welfare that is used, i.e. per capita income or per capita consumption.

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Section: Long‐run Growth Ratessupporting

confidence: 66%

Section: Introductionmentioning

confidence: 99%

Trade, Non-Scale Growth and Uneven Development

Sasaki

2011

Metroeconomica

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“…In open economy models, terms of trade adjustments may lead to equal growth rates under if strong growth leads to falling terms of trade (Findlay 1980;Acemoglu and Ventura 2002;Felbermayr 2007). This would go against our results of growth equations with heterogeneous slopes and intercepts.…”

Section: Cross-unit Cointegrationcontrasting

confidence: 55%

Can we have growth when population is stagnant? Testing linear growth rate formulas of non-scale endogenous growth models

Ziesemer

2019

Applied Economics

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We subdivide scale-invariant fully or semi-endogenous growth models into six sub-categories for formulas relating steady-state growth rates of income per capita and the growth rate of the population depending on the properties of slopes and intercepts. We capture their steady-state relation by a long-term relation in panel vector-error-correction models for 16 countries and estimate the 16 models simultaneously allowing successively for more heterogeneity. Under slope homogeneity, the slope and intercepts of the growth equations are positive in this setting. However, allowing for heterogeneity there are two main groups of countries: those with non-positive slopes and positive intercepts are a large majority supporting fully endogenous growth; those with positive slopes and zero intercepts are a smaller group supporting semi-endogenous growth. Results therefore favour fully over semiendogenous growth with and without slope homogeneity and allow for growth rate policies. The more frequent case is that long-run growth can remain positive if population stops growing. Analysis of cross-unit cointegration suggests that long-run results are internationally connected.

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“…Among others, Caselli and Wilson (2004) shape cross-country productivity differences as dependent on R&D embodied in equipment imports. A fully endogenous growth model with trade of capital goods (even though without R&D) can be found in Eaton and Kortum (2001), whilst one based on learning-by-doing is proposed by Felbermayr (2007). Following this second strand of theoretical literature, it is by now a standard practice taking account of foreign research, along with domestic R&D, in assessing the contribution of knowledge spillovers to productivity growth.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

The modern drivers of productivity

Venturini

2015

Research Policy

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Using country-level data, this paper investigates the determinants of productivity in emerging knowledge economies by estimating the spillovers associated with investment in Research & Development (R&D) and Information Technology (IT). The work illustrates that both forms of technicallyadvanced capital (R&D and IT) matter for long-run TFP growth. Furthermore, by inspecting knowledge spillovers associated with either the domestic production or import penetration of high-tech (IT) goods, we show that the R&D base of the domestic producers of IT assets is a fundamental driver of economic growth for the industrialized countries. In terms of TFP gains, a low degree of industry specialization in information technology can only partly be compensated by a country's trade openness, i.e. importing R&D-intensive (IT) goods from abroad. This contrasts to what occurs for less technically-advanced (non-IT) productions, for which trade is an effective conduit for knowledge.

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Specialization on a technologically stagnant sector need not be bad for growth

Cited by 15 publications

References 26 publications

Trade, Non-Scale Growth and Uneven Development

Trade, Non-Scale Growth and Uneven Development

Can we have growth when population is stagnant? Testing linear growth rate formulas of non-scale endogenous growth models

The modern drivers of productivity

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