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Cross-country catch-up in the manufacturing sector: Impacts of heterogeneity on convergence and technology adoption

Author

Listed:
  • Patrik T. Hultberg
  • M. Ishaq Nadiri
  • Robin C. Sickles

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. Copyright Springer-Verlag 2004

Suggested Citation

  • Patrik T. Hultberg & M. Ishaq Nadiri & Robin C. Sickles, 2004. "Cross-country catch-up in the manufacturing sector: Impacts of heterogeneity on convergence and technology adoption," Empirical Economics, Springer, vol. 29(4), pages 753-768, December.
    • Handle: RePEc:spr:empeco:v:29:y:2004:i:4:p:753-768
    DOI: 10.1007/s00181-004-0209-5
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    Citations

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    Cited by:

    1. Francis Teal & Markus Eberhardt, 2010. "Productivity Analysis in Global Manufacturing Production," Economics Series Working Papers 515, University of Oxford, Department of Economics.
    2. A. Yu. Apokin & I. B. Ipatova, 2017. "Components of total factor productivity of the Russian economy with respect to other countries of the world: The role of technical efficiency," Studies on Russian Economic Development, Springer, vol. 28(1), pages 15-21, January.
    3. Jean-Philippe Boussemart & Walter Briec & Christophe Tavera, 2011. "More evidence on technological catching-up in the manufacturing sector," Applied Economics, Taylor & Francis Journals, vol. 43(18), pages 2321-2330.
    4. Eberhardt, Markus & Teal, Francis, 2008. "Modeling technology and technological change in manufacturing: how do countries differ?," MPRA Paper 10690, University Library of Munich, Germany.
    5. Aditi Bhattacharyya, 2012. "Adjustment of inputs and measurement of technical efficiency: A dynamic panel data analysis of the Egyptian manufacturing sectors," Empirical Economics, Springer, vol. 42(3), pages 863-880, June.
    6. Robin C. Sickles & Jiaqi Hao & Chenjun Shang, 2014. "Panel data and productivity measurement: an analysis of Asian productivity trends," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 12(3), pages 211-231, August.
    7. Sickles, Robin C. & Hao, Jiaqi & Shang, Chenjun, 2015. "Panel Data and Productivity Measurement," Working Papers 15-018, Rice University, Department of Economics.
    8. Meryem Duygun & Jiaqi Hao & Anders Isaksson & Robin C. Sickles, 2017. "World Productivity Growth: A Model Averaging Approach," Pacific Economic Review, Wiley Blackwell, vol. 22(4), pages 587-619, October.
    9. Alexander Yu. Apokin & Irina Ipatova, 2016. "How R&D Expenditures Influence Total Factor Productivity and Technical Efficiency?," HSE Working papers WP BRP 128/EC/2016, National Research University Higher School of Economics.
    10. Ana Lozano-Vivas & Jesús Pastor, 2006. "Relating Macro-economic Efficiency to Financial Efficiency: A Comparison of Fifteen OECD Countries Over an Eighteen Year Period," Journal of Productivity Analysis, Springer, vol. 25(1), pages 67-78, April.
    11. Batóg Jacek & Batóg Barbara, 2007. "Productivity Changes in the European Union: Structural and Competitive Aspects," Folia Oeconomica Stetinensia, Sciendo, vol. 6(1), pages 63-74, January.
    12. Maciej Grodzicki, 2013. "Productivity Convergence in Manufacturing in the European Union: The Role of Economic Structure," Research in Economics and Business: Central and Eastern Europe, Tallinn School of Economics and Business Administration, Tallinn University of Technology, vol. 5(2).
    13. Pavlos Almanidis & Mustafa U. Karakaplan & Levent Kutlu, 2019. "A dynamic stochastic frontier model with threshold effects: U.S. bank size and efficiency," Journal of Productivity Analysis, Springer, vol. 52(1), pages 69-84, December.
    14. Batóg Barbara & Batóg Jacek & Mojsiewicz Magdalena, 2009. "Application of Kernel Estimation in Analysis of Labour Productivity of the Largest Polish Firms in 2004-2008," Folia Oeconomica Stetinensia, Sciendo, vol. 8(1), pages 126-139, January.
    15. Barnabé Walheer, 2016. "Multi-Sector Nonparametric Production-Frontier Analysis of the Economic Growth and the Convergence of the European Countries," Pacific Economic Review, Wiley Blackwell, vol. 21(4), pages 498-524, October.
    16. Dong Hyun Lee & Ga Youn Hong & Sang-Gun Lee, 2019. "The relationship among competitive advantage, catch-up, and linkage effects: a comparative study on ICT industry between South Korea and India," Service Business, Springer;Pan-Pacific Business Association, vol. 13(3), pages 603-624, September.
    17. Arnab Bhattacharjee & Eduardo Castro & Chris Jensen-Butler, 2009. "Regional variation in productivity: a study of the Danish economy," Journal of Productivity Analysis, Springer, vol. 31(3), pages 195-212, June.

    More about this item

    Keywords

    International comparisons; panel data methods; convergence and catch-up in best-practice technologies; O47; O57; C33; C41;
    All these keywords.

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies

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