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Technological Progress, Labour Productivity and Economic Growth: Disentangling the Negative and Positive Effects

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  • MERTER MERT

    (Gazi University)

Abstract

This study simply claims that technological progress has positive and negative effects on the labour productivity, so, on the economic growth. Technological progress may have a negative effect on economic growth because of skills obsolescence of labour. For this reason, if the nature of technological progress is assumed as Harrod-neutral for the steady-state analysis, then, the net effect of the technological progress on the economic growth can be examined. Using Hicks-neutrality, it cannot be possible to investigate positive and negative effects. The present study offers a simple calculation procedure in order to disentangle the positive and negative effects. Finally, the study tries to introduce capital-deepening-induced technological progress, if the growth rate and contribution of technological progress is found negative while there is positive economic growth and the steady state conditions are hold at the final state.

Suggested Citation

  • Merter Mert, 2017. "Technological Progress, Labour Productivity and Economic Growth: Disentangling the Negative and Positive Effects," Proceedings of International Academic Conferences 4707377, International Institute of Social and Economic Sciences.
    • Handle: RePEc:sek:iacpro:4707377
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    References listed on IDEAS

    as
    1. H. Uzawa, 1961. "Neutral Inventions and the Stability of Growth Equilibrium," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 28(2), pages 117-124.
    2. J. R. Hicks, 1963. "The Theory of Wages," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-00189-7, October.
    3. Senay Acikgoz & Merter Mert, 2014. "Sources of Growth Revisited: The Importance of the Nature of Technological Progress," Journal of Applied Economics, Taylor & Francis Journals, vol. 17(1), pages 31-62, May.
    4. Madsen, Jakob B., 2010. "The anatomy of growth in the OECD since 1870," Journal of Monetary Economics, Elsevier, vol. 57(6), pages 753-767, September.
    5. Mr. N. F. R. Crafts, 2000. "Globalization and Growth in the Twentieth Century," IMF Working Papers 2000/044, International Monetary Fund.
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    More about this item

    Keywords

    Economic growth; technological progress; skills obsolescence.;
    All these keywords.

    JEL classification:

    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O39 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Other

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