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Long-run technical change and multifactor productivity growth in US manufacturing

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  • John Mullen

Abstract

This study utilizes a translog cost function to produce econometric estimates of the separate influences of technical change versus scale efficiency in contributing to multifactor productivity growth within the US manufacturing sector. The analysis generates (two-digit) industry-specific parameters that capture the effects of output versus time-related shifts in the cost function over the 1949-1991 period. Thus initial evidence concerning the relative importance of technical progress (versus 'scale') cannot be provided as a source of productivity gains within two-digit industries. The parametric estimates of total factor productivity growth are compared with existing Divisia measures to explore the shortcomings of the growth accounting technique. These long-run patterns hold implications for the productivity convergence hypothesis traced to knowledge spillovers between industries.

Suggested Citation

  • John Mullen, 2001. "Long-run technical change and multifactor productivity growth in US manufacturing," Applied Economics, Taylor & Francis Journals, vol. 33(3), pages 301-308.
    • Handle: RePEc:taf:applec:v:33:y:2001:i:3:p:301-308
    DOI: 10.1080/00036840121703
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    Cited by:

    1. M. Ali Choudhary & Vasco Gabriel, 2009. "Is there really a gap between aggregate productivity and technology?," Applied Economics, Taylor & Francis Journals, vol. 41(27), pages 3499-3503.
    2. L. Wei & J. Xiao, 2012. "Factors affecting the take-off of innovative technologies: evidence from digital cameras," Applied Economics, Taylor & Francis Journals, vol. 44(32), pages 4143-4152, November.
    3. Jianmin Tang & Carolyn MacLeod, 2006. "Labour force ageing and productivity performance in Canada," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 39(2), pages 582-603, May.

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