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Productivity dynamics and structural change in the US manufacturing sector

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  • Jens J. Krüger

Abstract

The article investigates structural change among the four-digit (SIC) industries of the US manufacturing sector during 1958–1996 and its relation to productivity growth within a distribution dynamics framework. Focus is on the transition density of the Markov process that characterizes the value-added shares of the industries. This transition density is estimated nonparametrically as well as by maximum likelihood, in which case the functional form of the density is motivated by a search theoretic model. The nonparametric fit and the maximum likelihood fit show striking similarities. The relation of structural change to a measure of total factor productivity change is tested by quantile regression and appears to be significantly positive throughout. Copyright 2008 , Oxford University Press.

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  • Jens J. Krüger, 2008. "Productivity dynamics and structural change in the US manufacturing sector," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 17(4), pages 875-902, August.
    • Handle: RePEc:oup:indcch:v:17:y:2008:i:4:p:875-902
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    Cited by:

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    2. Juan R. Cuadrado-Roura & Andres Maroto-Sanchez, 2011. "Regional productivity growth in European countries. The role of services," ERSA conference papers ersa10p163, European Regional Science Association.

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    More about this item

    JEL classification:

    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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