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Learning-by-Doing and Productivity Dynamics in Manufacturing Industries

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  • Andrew Clarke

Abstract

This paper estimates a structural model of learning-by-doing. Treating production experience as a state variable, this paper provides estimates of the structural parameters obtained from the first order conditions arising from the plant’s maximization problem. Estimates are provided using data on 4-digit manufacturing industries and plant-level observations. Using aggregate industry data, the results indicate that estimated learning rates might be considerably lower than previous estimates. The results also reveal considerable variation in estimated learning rates, across broad industry groups, at both the plant-level and the 4-digit industry level. This implies that using results from existing studies that focus upon specific, narrowly defined industries or firms, may lead to misleading conclusions concerning the widespread importance of learning-by-doing for generating productivity dynamics within the manufacturing industry

Suggested Citation

  • Andrew Clarke, 2008. "Learning-by-Doing and Productivity Dynamics in Manufacturing Industries," Department of Economics - Working Papers Series 1032, The University of Melbourne.
    • Handle: RePEc:mlb:wpaper:1032
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    File URL: http://fbe.unimelb.edu.au/__data/assets/pdf_file/0004/802723/1032.pdf
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    References listed on IDEAS

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    Cited by:

    1. Ruy Lama & Juan Pablo Medina, 2012. "Is Exchange Rate Stabilization an Appropriate Cure for the Dutch Disease?," International Journal of Central Banking, International Journal of Central Banking, vol. 8(1), pages 5-46, March.
    2. Clarke, Andrew J. & Johri, Alok, 2009. "Procyclical Solow Residuals Without Technology Shocks," Macroeconomic Dynamics, Cambridge University Press, vol. 13(3), pages 366-389, June.

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    More about this item

    Keywords

    Production Experience; Learning-by-Doing; Structural Estimation;
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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