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Directed technological change, skill complementarities and sectoral productivity growth: evidence from industrialized countries during the new economy

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  • Thomas Strobel

Abstract

Recent growth accounting exercises attribute strong productivity growth to increased investments in information and communication technologies (ICT) over the last decades, but abstain from potential complementarity effects with other inputs. Based on three different sets of industrialized countries, this study shows that sectoral productivity growth originated from ICT-skill complementarities and skill-biased technological change (SBTC) during the New Economy. In particular, Scandinavian goods-producing sectors and Anglo–Saxon market services reveal strong SBTC effects that originated from ICT-skill complementarities, while such effects were totally missing in Continental market services during the same periods. Further drivers of productivity growth were intermediate and non-ICT capital deepening. Copyright Springer Science+Business Media New York 2014

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  • Thomas Strobel, 2014. "Directed technological change, skill complementarities and sectoral productivity growth: evidence from industrialized countries during the new economy," Journal of Productivity Analysis, Springer, vol. 42(3), pages 255-275, December.
    • Handle: RePEc:kap:jproda:v:42:y:2014:i:3:p:255-275
    DOI: 10.1007/s11123-014-0405-z
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    Cited by:

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    2. Egwakhe A. J. & Amos N. B. & Nicodemus T., 2021. "Can Technology Transfer Stimulate Labour Productivity: Experience from Nigeria Automobile Sector," International Journal of Business and Management, Canadian Center of Science and Education, vol. 15(4), pages 1-1, July.

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    More about this item

    Keywords

    Industry productivity growth; Information and communication technology; Heterogeneous labor; Capital-skill complementarity; Skill-biased technological change; J24; O33; O39; O47; O49; O51; O52;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O39 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Other
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O49 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Other
    • O51 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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